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In evaluating the performance of electronic marketplaces, research has focussed on the impact of factors such as IT, marketplace process design and competition. However, such research has neglected the impact of ownership upon electronic marketplace performance. This paper explores the issue of electronic marketplace ownership and contributes to the literature by revealing four distinct aspects of ownership of electronic marketplaces; investor structure, investor objectives, investor commitment and governance efficiency. Using a multiple case approach, the paper evaluates the performance of seven electronic marketplaces in order to determine the relationship between marketplace performance and ownership.
The study reveals a multitude of investor objectives for their marketplace investment, broadly categorised as; transactional, financial or fear. The analysis reveals that investor objectives impact upon investor commitment levels with those investors interested in the transactional benefits of electronic marketplaces being most committed.
Analysis revealed that investor objectives impact upon how efficiently a marketplace is governed. In particular, structures where investors have a broad range of objectives result in indecision in relation to policy formulation and decision making. However, in scenarios where there is accord among investors, in relation to utilising the marketplace for transactional purposes, strategy formulation and decision making is much more decisive. Having a Board that’s decisive, results in the marketplaces value proposition being continuously reviewed and in cases where resolute decisions were taken, increased volumes, increased adoption levels and improved revenues occurred. To conclude, both investor commitment levels and governance efficiency impact upon electronic marketplace performance.
Keywords:
electronic marketplace, performance evaluation and improvement, ownership, investor structure
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