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Rask, M., & Kragh, H. (2004). Motives for e-marketplace participation: Differences and similarities between buyers and suppliers. Electronic Markets, 14(4), 270-283 http://www.electronicmarkets.org/modules/issue/view.php?id=49

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The motivation for e-marketplace participation for suppliers as well as buyers is closely linked to the perceived outcome of participation and not only in terms of the benefits of joining an e-marketplace, but also in terms of possible consequences of not joining. Hence, the central issue is why organisations decide to buy and/or sell goods or services on e-marketplaces. We develop a theoretical framework for the categorisation of motivational factors, resulting in four different types of motives. We then apply the framework to a dataset consisting of 41 case studies covering 20 industries in 12 countries. We conclude that buyers and suppliers have different motives for engaging in e-marketplace activities. E-marketplaces are certainly a way of making supply chain activities more efficient, but not necessarily with the sole aim of exploiting suppliers. Buyers also use e-marketplaces to find new and alternative suppliers and even though many suppliers initially decide to participate in e-marketplaces because they are asked to do so by existing customers, they also use e-marketplaces to look for new customers. When expressing their motives for engaging in e-marketplace activities, buyers tend to be pro-active and planning oriented, whereas suppliers are driven by external forces.

Electronic Markets and Supply Chains: Emerging Models, Execution, and Performance Measurement

EM Vol. 14, No. 4 Introduction

"We are happy to present you a new issue of EM - Electronic Markets. In this last edition of Volume 14 we present nine articles, both, in our general research and in our special focus theme section. These contributions were selected out of a new record of submissions, coming from more than 20 countries covering mainly North America, Asia, and Europe, after a severe review process."

EM Vol. 14, No. 4 Editor's Note to the special focus theme section by Jonathan W. Palmer

"This issue of EM brings together some of the best current work available in the area of supply chain management, especially as it relates to the design, adoption, and performance of B2B marketplaces and exchanges. When the special issue planning began, the editors’ focus was on examining supply chain implications and technologies. The editors received more than 40 submissions for the special call."

"The special issue brings together researchers from organizational, operational, and technological perspectives within the larger IS community to share their insights on a significant issue facing virtually every firm and industry... The final five papers selected were chosen because of their strong insights provided through both theoretically rigorous development of models to examine the diverse uses of information technology in supporting supply chain activities. The papers are arranged in an order that moves from 1) identifying key motives for participating in electronically supported supply chains; 2) identifying specific examples of ISMs and Consortia; and 3) evaluating performance impacts of strategic choices as to the use of electronic supply chain elements such as emarketplaces."

"Rask and Kragh examine the factors influencing buyers and suppliers in participating in e-marketplaces. The authors identify four key categories of drivers: efficiency, positioning, exploration, and legitimacy. Applying the framework of drivers, 41 cases from 12 countries are reviewed. The results suggest that buyers are driven to e-marketplaces for reasons of efficiency and the potential for identifying new suppliers whereas suppliers are driven by external forces, including existing suppliers, but also see opportunities for identifying new buyers and markets. Both buyers and suppliers envision e-marketplaces as defining their market positions. This paper is one of the few that looks at both the buyer and seller perspective within electronic markets – offering a unique combination of insights for the supply chain participants."

"As a group, these five paper begin to give us answers regarding the critical questions in emarketplaces and supply chain management, including the factors influencing adoption, the different perspectives of buyers and sellers, strategic marketplace design options, and empirical evidence regarding e-market performance. While these papers offer a strong contribution to the discussion, there is more to do. These papers identify a variety of new areas for focus including the impact of internationalization on supply chains; differences in product asset specificity, and the interrelationships among motives for adoption. These papers suggest the existence of both different diffusion levels of supply chain technologies and that multiple variants of supply chains often operate simultaneously. This raises the issue of how these parallel, traditional and electronic supply chains differ and how they can be managed most effectively. The research also suggests the examination of electronic market and supply chain performance can continue to be refined and amplified through both larger samples and finer measures."


The report explores the historical evolution of these virtual platforms and analyses as well the so called “e-marketplace life cycle”, where e-marketplaces get first announced in press releases, then grow, some of them fail, and, eventually, some of them survive while others merge or consolidate into larger  initiatives.

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