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Uncertainty in cooperation between service buyers and sellers

Author

Listed:
  • Eriksson, Kent
  • Sharma, D. Deo
  • Silver, Lars

Abstract

The realization of relationship marketing requires cooperative exchange between buyers and sellers. A key determinant of cooperative exchange is uncertainty perceived by the cooperating parties. This study investigates how cooperation is affected by decision makers’ perception of uncertainties in the environmental context, in relationships, and in decision-making routines. A sample of 135 branch managers from banks is used in a LISREL model. The results show that uncertainty regarding relationship and decision-making have strong direct effects on relationship cooperation. An important finding is that contextual uncertainty causes relationship cooperation indirectly. The results highlight the importance of organization in firms that aim to facilitate cooperation between buyer and seller. In addition, they set an agenda for future research.

Suggested Citation

  • Eriksson, Kent & Sharma, D. Deo & Silver, Lars, 1998. "Uncertainty in cooperation between service buyers and sellers," Working Papers 1998:5, Uppsala University, Department of Business Studies.
  • Handle: RePEc:hhb:uufewp:9805
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