B2B E-Marketplaces - Interconnection Effects, Strategic Positioning, and Performance
Keywords:
Electronic marketplaces, Business-to-business e-commerce, Strategic positioning, Brokerage effects, Integration effects, Value proposition, Strategic fit, Strategic alignment gestaltsAbstract
Electronic markets theory leads to the prediction that the ?interconnection effects? of information technology will lower coordination costs in market transactions, prompting a move from hierarchical to market arrangements. This prediction was apparently validated by the proliferation of B2B e-marketplaces in the mid-1990s. But the subsequent abrupt consolidation of public, independent e-marketplaces raises questions about what it takes for e-marketplaces to succeed. Experience with actual e-marketplaces suggests that electronic interconnection effects alone may not explain e-marketplace success. The strategic management literature provides a complementary view, emphasizing the fit between an e-marketplace's value proposition, its product-market focus, and its value activities. The purpose of this paper, therefore, is to explore the degree to which the strategic positioning perspective contributes to the explanation of e-marketplace success. We analyzed a pair of e-marketplaces sharing the same competitive space, one successful and the other less so. We found that the number and types of interconnection benefits alone did not make a good explanation of e-marketplace success. However, the additional concepts provided by strategic positioning theory - particularly the holistic fit between benefits types offered (value proposition), product-market focus, and value activities - do appear to explain well the observed differences in e-marketplace performance. Future research should extend our exploratory investigation of e-marketplace success.How to Cite
SOH, C., & MARKUS, L. (2002). B2B E-Marketplaces - Interconnection Effects, Strategic Positioning, and Performance. Systèmes d’Information Et Management (French Journal of Management Information Systems), 7(1), 77–103. Retrieved from https://revuesim.org/index.php/sim/article/view/114
Issue
Section
Empirical research
License
The author bears the responsibility for checking whether material submitted is subject to copyright or ownership rights (e.g. figures, tables, photographs, illustrations, trade literature and data). The author will need to obtain permission to reproduce any such items, and include these permissions with their final submission.
It is our policy to ask all contributors to transfer for free the copyright in their contribution to the journal owner. There are two broad reasons for this:
- ownership of copyright by the journal owner facilitates international protection against infringement of copyright, libel or plagiarism;
- it also ensures that requests by third parties to reprint or reproduce a contribution, or part of it, in either print or electronic form, are handled efficiently in accordance with our general policy which encourages dissemination of knowledge within the framework of copyright.
In conformity with the French law, the author keeps the 'moral rights' related to the article:
- The 'authorship right': It is the author's right to have his name associated with each publication and exploitation of the article.
- The 'integrity right': It can be claimed by the author if he finds that during an exploitation, his work has been distorted (cutting, reassembly...).