Buyer-seller interaction dynamics: a multidimensional assessment of seller reputation and perceived freedom in curbing opportunism in online platforms

Purpose - Drawing on the principal-agent theoretical perspective, we assert that sellers’ opportunism is acknowledged as an essential component that could determine the quality of the relationship between buyers (principals) and sellers (agents). The primary aim of this research is to investigate the influence of seller behavior vs outcome-based reputation and seller’s perceived freedom on opportunistic behavior in the Chinese e-commerce platform context.

Design/methodology/approach - The data collected from 436 e-commerce platform sellers were analyzed and interpreted using structural equation modeling.

Findings - The results indicate that both behavior-based and outcome-based reputations positively impact sellers’ perceived freedom but negatively impact their opportunism. Additionally, while perceived freedom of objectives reduces opportunism, freedom of action increases it. The study also highlights the significant moderating roles of prevention mechanisms and ethical ideology.

Originality/value - This study extends the principal-agent perspective by integrating the seller’s reputation as a potential source of preventing sellers from behaving opportunistically on e-commerce platforms.

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