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Factors influencing suppliers’ participation in private electronic markets

  • Sang Lee


  • Seong-bae Lim


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    This study is intended to identify factors, which influence suppliers’ participation in the private electronic market (PEM). The results of this study show that many suppliers do not recognize the potential benefits that PEM could offer and they do not believe their off-line relationships with a buyer could be transferred to on-line. Thus, buyers need to convince their suppliers that PEM is not just a price based marketplace but instead a business model where mutual benefits can be achieved based on existing trust relationships between a buyer and limited number of qualified suppliers. Copyright Springer-Verlag 2007

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    Article provided by Springer in its journal Service Business.

    Volume (Year): 1 (2007)
    Issue (Month): 1 (March)
    Pages: 41-62

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    Handle: RePEc:spr:svcbiz:v:1:y:2007:i:1:p:41-62
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    1. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-58, December.
    2. Kirchsteiger, G. & Niederle, M. & Potters, J.J.M., 2001. "Public Versus Private Exchanges," Discussion Paper 2001-101, Tilburg University, Center for Economic Research.
    3. Grossman, Sanford J. & Hart, Oliver D., 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Scholarly Articles 3450060, Harvard University Department of Economics.
    4. Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
    5. Oliver Hart & John Moore, 1999. "Foundations of Incomplete Contracts," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 115-138.
    6. Eric T. G. Wang & Abraham Seidmann, 1995. "Electronic Data Interchange: Competitive Externalities and Strategic Implementation Policies," Management Science, INFORMS, vol. 41(3), pages 401-418, March.
    7. Munson, Charles L. & Rosenblatt, Meir J. & Rosenblatt, Zehava, 1999. "The use and abuse of power in supply chains," Business Horizons, Elsevier, vol. 42(1), pages 55-65.
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