Abstract
The last 10 years have witnessed the emergence of electronic marketplaces as players that leverage new technologies to facilitate B2B internet-mediated collaborative business. Nowadays these players are augmenting their services from simple intermediation to include new inter-organizational relationships. The interest of this paper is to investigate the shift in the role and evolution of services proposed by e-marketplaces in response to the demands of the market participants. We carried out a longitudinal qualitative field study of an e-marketplace providing the outsourcing of the procurement process. Through the study of services evolving over time we show that, as marketplaces support increasingly complex business processes, the market participants begin to privilege the well connected small number to the convenience of the openness to the entire market. The participants see the marketplace as an exclusive club, the belonging to which provides a strategic advantage. The technology brought forth by the marketplace participates in shaping the strategic demands of the participants which in turn request the marketplace to redesign its own strategy. Profiting from this unintended demand, the e-marketplace assumes the paradoxical role of a strategic mediator: an agent who upholds and heightens the fences of the transactions instead of leveling them. The results have implication in shaping how we see the role of technology as strategic or commoditized.
Similar content being viewed by others
Notes
Transaction costs involve: contact costs, contracting costs, monitoring costs, adaptation costs (Wigand et al. 1997, p 269)
In order to understand the change that selling the majority of shareholding capital means, it is necessary to spend a few words on cooperative environment. The principal aim of a cooperative is to support the social growth of its members. Trust, ethic, social equity, mutual help are the basis for joining the cooperative rather than pursuing the profit. In other words, members are attracted to be part of a cooperative not for economic reasons but following social, ethical and political believes. From a transaction cost perspective we can consider cooperative as a particular form of clan (Ouchi 1980).
References
Agar, M. (1980). The professional stranger: An informal introduction to ethnography. New York: Academic.
Austin, D. A., Gravelle, J.G. (2008). Does price transparency improve market efficiency? Implications of empirical evidence in other markets for the health sector, CRS report for Congress, April 29, 2008.
Bakos, J. Y. (1997). Reducing buyer search costs: Implications for electronic marketplaces. Management Science, 43(12), 1676–1692.
Bakos, J. Y. (1998). The emerging role of electronic marketplaces on the Internet. Communication of the ACM, 41(8), 35–42.
Bailey, J. P., & Bakos, J. Y. (1997). An exploratory study of the emerging role of electronic intermediaries. International Journal of Electronic Commerce, 1(3), 7–20.
Barley, S. R. (1990). Images of imaging: Notes on doing longitudinal field work. Organization Science, 1(1), 220–247.
Benbasat, I. (1984). An analysis of research methodologies. In W. F. McFarlan (Ed.), The information systems research challenge (pp. 47–85). Boston: Harvard Business School.
Benjamin, R., & Wigand, R. (1995). Electronic markets and virtual value chains on the information superhighway. Sloan Management Review, 36, 62–72.
Bhargava, H. K., & Choudhary, V. (2004). Economics of an information intermediary with aggregation benefits. Information Systems Research, 15, 22–36.
Brynjolfsson, E., Malone, T. W., Gurbaxani, V., & Kabil, A. (1994). Does information technology lead to smaller firms? Management Science, 40(2), 1628–1644.
Carr, N. G. (2003). It doesn’t matter. Harvard Business Review, 81, 41–49.
Campbell, D. T. (1975). “Degrees of freedom” and the case study. Comparative Political Studies, 8(2), 178–193.
Ciborra, C. (1993). Teams, markets, and systems: business innovation and information technology. Cambridge: Cambridge University Press.
Christiaanse, E., & Damsgaard, J. (2000). “Success and failure in building electronic infrastructures in the air cargo industry: A comparison of The Netherlands and Hong Kong SAR”, PrimaVera working paper 2000-29. Amsterdam: University of Amsterdam.
Christiaanse, E., & Markus, L. (2003). Participation in collaboration electronic marketplaces. Hawaii, USA: Hawaii International Conference on System Science.
Coase, R. H. (1937). The nature of the firm. Economica, 16, 386–405.
Conway, D. G. (2000). Supplier affiliated extended supply chain backbones. Information Systems Frontiers, 2(1), 57–64.
Daniel, E. M., White, A., & Ward, J. M. (2004). Exploring the role of third parties in inter-organizational web service adoption. Journal of Enterprise Information Management, 17(5), 351–360.
Dikey, M. H., & Ives, B. (2000). The impact of intranet technology on power in franchisee/franchisor relationships. Information systems Frontiers, 2(1), 99–114.
El Sawy, O. (2003). Collaborative integration in e-business through private trading exchanges (PTXs). Information Systems and e-Business Management, 1, 119–137.
Fielt, E., Janssen, W., Faber, E. & Wagenaar, R. (2006). Towards a design theory for electronic intermediaries. In M. Tanniru, T-P. Liang, M. J. Shaw, D. Zeng, M. Chau & S-Y. Hwang (Eds.), Proceedings of the 5th workshop on e-business (WeB 2006), Milwaukee, Wisconsin, USA.
Fong, T., Fowler, D., & Swatman, P. M. C. (1998). Success and failure factors for implementing effective electronic markets. Electronic Markets, 8, 45–47.
Ganesh, J., Madanmohan, T. R., Jose, P. D., & Seshadri, S. (2004). Adaptive strategies of firms in high-velocity environments: The case of B2B electronic marketplaces. Journal of Global Information Management, 12, 41–59.
Glaser, B. G., & Strauss, A. L. (1967). The discovery of grounded theory: Strategies for qualitative research. Chicago: Aldine.
Grieger, M. (2003). Electronic marketplaces: A literature review and a call for supply chain management research. European Journal of Operational Research, 144, 280–294.
Guo, J. (2007). Business-to-business electronic market place selection. Enterprise Information Systems, 1, 383–419.
Gurbaxani, V., & Whang, S. (1991). The impact of information systems on organizations and markets. Communications of the ACM, 34, 59–73.
Hamel, J., Dufour, S., & Fortin, D. (1993). Case study methods, vol. 32. Thousand Oaks: Sage.
Holzmuller, H., & Schlichter, J. (2002). Delphi study about the future of B2B marketplace in Germany. in Electronic Commerce Research and Application, 1, 2–19.
Hopkins, J. L., & Kehoe, D. F. (2006). The theory and development of a relationship matrix based approach to evaluating e-marketplaces. Electronic Markets, 16, 245–260.
Kalakota, R., & Konsynski, B. (2000). The rise of neo-intermediation: The transformation of the brokerage industry. Information Systems Frontiers, 2(1), 115–128.
Kambil, A., & Van Heck, E. (1998). Reengineering the Dutch flower auctions: a framework for analyzing exchange organizations. Information Systems Research, 9(1), 1–19.
Kim, G. M., & Lee, G. S. (2003). E-Catalog evaluation criteria and their relative importance. The Journal of Computer Information Systems, 34(4), 55–62.
Klein, A., & Krcmar, H. (2006). DCXNET: E-transformation at DaimlerChrysler. Journal of information technology, 21(1), 52–65.
Laseter, T. M., & Bodily, S. E. (2004). Strategic indicators of B2B e-marketplace financial performance. Electronic Markets, 14, 322–332.
Lee, T. W. (1999). Using qualitative methods in organizational research. Thousand Oaks: Sage.
Lomuscio, A. R., Wooldridge, M., & Jennings, N. R. (2003). A classification scheme for negotiation in electronic commerce. Group Decision and Negotiation, 12(1), 31–56.
MacDuffie, J. P., & Helper, S. (2003). B2B and mode or exchange: evolutionary and transformative effect. In B. Kogut (Ed.), The global internet economy. Cambridge, MA: MIT.
Markus, M. L., & Robey, D. (1988). Information technology and organizational change: Casual structure in theory and research. Management Science, 34(5), 583–598.
Malone, T. W., Benjamin, R. I., & Yates, J. (1987). Electronic markets and electronic hierarchies: Effects of information technology on market structure and corporate strategies. Communications of the ACM, 30(6), 484–497.
Ouchi, W. G. (1980). Markets, Bureaucracies and Clans. Administrative Science Quarterly, vol. XXV, n.1.
Picot, A., Bortenlaenger, C., & Roehrl, H. (1997). Organization of electronic markets: contributions from the new institutional economics. The Information Society, 13, 107–123.
Powell, W. W. (1990). Neither market nor hierarchy: Network forms of organization. Research in Organizational Behaviour, 12, 295–336.
Powell, W. W., & Grodal, S. (2005). Networks of innovators. The Oxford handbook of innovation pp. 56–85. Oxford: Oxford University Press.
Philipps, C., & Meeker, M. (2000). The B2B Internet report: Collaborative commerce. New York: Morgan Stanley Dean Bitter Research.
Soh, C., Markus, M. L., & Goh, K. H. (2006). Electronic marketplaces and price transparency: Strategy, information technology, and success. MIS Quarterly, 30(3), 705–723.
Stake, R. E. (2000). Case studies. In N. K. Denzin, & Y. S. Lincoln (Eds.), Handbook of qualitative research (pp. 435–454). Thousand Oaks: Sage.
Tan, G. W., Shaw, M. J., & Fulkerson, B. (2000). Web-based supply chain management. Information Systems Frontiers, 2(1), 41–55.
Van Maanen, J. (1979). The fact of fiction in organizational ethnography. Administrative Science Quarterly, 24, 539–550.
Wang, S., Archer, N. P., & Zheng, W. (2006). An exploratory study of electronic marketplace adoption: A multiple perspective view. Electronic Markets, 16, 337–348.
Wang, S., & Archer, N. P. (2007). Electronic marketplace definition and classification: Literature review and clarifications. Enterprise Information Systems, 1, 89–112.
Wang, S., Zheng, S., Xu, L., Li, D., & Meng, H. (2008). A literature review of electronic marketplace research: Themes, theories and an integrative framework. Information Systems Frontiers, 10, 555–571.
Weill, P., & Vitale, M. R. (2001). Place to Space: Migrating to e-business models. Boston: Harvard Business School.
Wigand, R. T. (1996). Electronic commerce: definition, theory, and context. The Information Society, 13(1), 1–16.
Wigand, R. T. (1997). Electronic commerce. Definition, theory and context. The Information Society, 13, 1–16.
Wigand, R., Picot, A., & Reichwald, R. (1997). Information, organization and management. Chichester, NY: Wiley.
Williamson, O. E. (1975). Market and hierarchies. Analysis and antitrust implication. New York: The Free.
Williamson, O. E. (1981). The economics of organizations: the transaction cost approach. American Journal of Sociology, 87, 548–577.
Yin, R. K. (1984). Case study research, design and methods. Beverly Hills: Sage.
Zhu, K. (2002). Information transparency in electronic marketplaces: Why data transparency may hinder the adoption of B2B exchanges. Electronic Markets, 12, 92–99.
Zhu, K. (2004). Information transparency of business-to-business electronic markets: A game-theoretic analysis. Management Science, 50, 670–685.
Author information
Authors and Affiliations
Corresponding author
Additional information
Responsible editor: Hans-Dieter Zimmermann
Rights and permissions
About this article
Cite this article
Rossignoli, C., Carugati, A. & Mola, L. The strategic mediator: a paradoxical role for a collaborative e-marketplace. Electron Markets 19, 55–66 (2009). https://doi.org/10.1007/s12525-009-0005-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12525-009-0005-3