The role of intermediaries in electronic marketplaces: developing a contingency model

Abstract. Early research in electronic markets seemed to suggest that e‐ commerce transactions would result in decreased costs for buyers and sellers alike, and would therefore ultimately lead to the elimination of intermediaries from electronic value chains. However, a careful analysis of the structure and functions of electronic marketplaces reveals a different picture. Intermediaries provide many value‐adding functions that cannot be easily substituted or ‘internalized’ through direct supplier–buyer dealings, and hence mediating parties may continue to play a significant role in the e‐commerce world. In this paper we provide an analysis of the potential roles of intermediaries in electronic markets and we articulate a number of hypotheses for the future of intermediation in such markets. Three main scenarios are discussed: the disintermediation scenario, in which market dynamics will favour direct buyer–seller transactions; the reintermediation scenario, in which traditional intermediaries will be forced to differentiate themselves and re‐emerge in the electronic marketplace; and the cybermediation scenario, in which wholly new markets for intermediaries will be created. The analysis suggests that the likelihood of each scenario dominating a given market is primarily dependent on the exact functions that intermediaries play in each case. A detailed discussion of such functions is presented in the paper, together with an analysis of likely outcomes in the form of a contingency model for intermediation in electronic markets.     

Trust, power and interorganizational information systems: the case of the electronic trading community TransLease

This paper focuses on Cap Gemini’s electronic commerce system, TransLease. TransLease is an interorganizational information system (IOS), which facilitates electronic commerce between motor vehicle leasing and repair companies. During our investigation, the system was used by approximately 1000 repair agents working for seven of the UK’s leading vehicle leasing and contract hire companies. This system was originally developed by AT&T and acquired by Cap Gemini in July 1998. At the time of acquisition, the system was seen as being of high strategic value, although it was also seen as underperforming. This paper reports the results of an action research project, which formed one element of the process by which Cap Gemini investigated the former problem. In the paper, TransLease is described as a complex electronic community, dependent upon the existence of symbiotic relationships. As such, the problems that the system users and developers experienced can be attributed to factors that impeded the mutual benefit accruing from participation in the system. The efficacy of the terms of exchange and the degree to which participants mutually benefit through electronic interaction is determined by the complex interplay of a number of relational and organizational factors. The research therefore illustrates the importance of the ‘soft’ organizational issues in IOS management and development, and suggests a conceptual model of the factors relevant in this case. At the time of this study, TransLease was still in the early stages of its life cycle, having only been available in the marketplace for approximately 18 months. During this time, through recognizing the complex problems and issues detailed in this paper, Cap Gemini accordingly redressed the way in which the system was managed and maintained. TransLease is now seen as having matured into a highly successful example of an IOS – a view reflected by its position as market leader in the industry. As this paper will show, the key to improving the existing service has been the emphasis Cap Gemini now places on managing the ‘soft’ aspects of the electronic community.     

以培养电子商务专业人才为目标的图形图像处理课程研究

职业技术学院在我国劳动技能与技术型人才的培养上做出了杰出的贡献,随着近年来社会各个行业对实务型人才需求量的猛增,更加大了职业技术学院的人才教育与培养任务。电子商务作为目前的新兴行业,促进了贸易的飞速发展,人才需求量也逐步扩大。特别是图形图像处理与设计方面的人才非常紧缺,这就要求各个职业技术学院加大对以电子商务专业人才为培养目标的图形图形处理课程的教育与研究。     

Trustworthiness in electronic commerce: the role of privacy, security, and site attributes

While the growth of business-to-consumer electronic commerce seems phenomenal in recent years, several studies suggest that a large number of individuals using the Internet have serious privacy concerns, and that winning public trust is the primary hurdle to continued growth in e-commerce. This research investigated the relative importance, when purchasing goods and services over the Web, of four common trust indices (i.e. (1) third party privacy seals, (2) privacy statements, (3) third party security seals, and (4) security features). The results indicate consumers valued security features significantly more than the three other trust indices. We also investigated the relationship between these trust indices and the consumer's perceptions of a marketer's trustworthiness. The findings indicate that consumers' ratings of trustworthiness of Web merchants did not parallel experts' evaluation of sites' use of the trust indices. This study also examined the extent to which consumers are willing to provide private information to electronic and land merchants. The results revealed that when making the decision to provide private information, consumers rely on their perceptions of trustworthiness irrespective of whether the merchant is electronic only or land and electronic. Finally, we investigated the relative importance of three types of Web attributes: security, privacy and pleasure features (convenience, ease of use, cosmetics). Privacy and security features were of lesser importance than pleasure features when considering consumers' intention to purchase. A discussion of the implications of these results and an agenda for future research are provided.     

The application of Web ATMs in e-payment industry: A case study

Today’s highly competitive marketplace is forcing the retail banking industry to optimize every possible revenue-generating opportunity. New electronic channels are replacing the more traditional ones. Web ATMs system represents one of the recent developments in financial service distribution.Through a real-life case study, this article explains how much more advantage can be achieved by enhancing Web ATMs with the latest Web-enablement technology, and examines the key benefits that can accrue from the deployment of integrated circuit (IC) card and smart card reader on Web ATMs. Last but not the least, it is expected that this article could provide strategic thinking with some apocalypses of Web 2.0 to steer the banking system for achievable changes in a direction that is consistent with the needs and expectations of a population, especially in C2C business model.     

The role of the internet in business-to-business network transformations: a novel case and theoretical analysis

It is widely accepted that the development of electronic commerce and Internet technology has lead to various new opportunities to transform the nature of business-to-business networks, for instance through disinter-mediation, reintermediation and formation of virtual enterprises. However, discussions of the role of the Internet in such transformations in the electronic commerce literature have predominantly focused on the potential of the Internet to reduce transaction costs, particularly search costs. It is now recognised within the strategic management literature that factors other than transaction costs, largely ignored in electronic commerce literature, are important in shaping business-to-business networks. Therefore, this paper seeks to uncover new roles that the Internet can play in the strategic choices for organisations wishing to utilise electronic commerce and Internet technologies. It does this through detailed analysis of the strategic choices of an actual case company, one of which involves Internet-enabled distributed manufacturing, using three widely known theories of strategic choice: Transaction Cost Economics, the Resource-Based View, and Network Theory. Our analysis shows that in addition to its impact on transaction costs, the Internet can also impact on asset specificity of transactions, the imitability of resources, knowledge sharing in relationship management, and the scalability of business strategies. The contribution of this paper is to articulate several novel research propositions concerning the potential of the Internet in the transformation of business-to-business networks.     

Audit Resource Planning Success in B2B E-Commerce: Development and Testing of a Measurement Scale

Abstract

The e-commerce audit engagement scenario makes audit resource planning (ARP) an activity full of technological complexities. These complexities generally involve both e-commerce technologies and enterprise information integration, putting real pressure on the audit organization's scarce human and financial resources. However, the success (or effectiveness) of such complex audit resource planning activity is not well understood or easily measured. This paper attempts to develop and diagnostically test measurement scales using classical measurement development framework and contemporary structural equation modeling methods.

This study is motivated by prior studies in the conventional (non e-commerce) audit resource planning, and audit-planning domain published in the accounting and management information systems discipline. The prior studies suggest that audit resource planning in a B2B (business-to-business) e-commerce engagement is a multi dimensional construct consisting of four latent dimensions. The four latent dimensions of ARP success are reflected through several manifest variables obtained from various relevant studies.

The results confirm that audit resource planning success is operationalizable as a measurement scale with the four dimensions. The results of the study are tools for benchmarking future efforts by audit organizations. Accounting scholars can also use this study as a base for operationalizing audit resource planning success as a key dependent variable in future research.     

A countable and time-bound password-based user authentication scheme for the applications of electronic commerce

In this paper, we propose a secure and efficient user authentication scheme with countable and time-bound features. The countable feature is to limit the use to a certain number of times, which means that the users are able to successfully log into the system in a fixed number of times. The feature of the time-bound allows each login ticket to have a period of expiration. In other words, if a login request is overdue, it would not be available anymore. These features make our scheme more reliable for applications in the field of electronic commerce, such as on-line games, pay-TV, and so on. Since our scheme does not require any password or verification table and can avoid replay attacks, it is under firm security. Moreover, our scheme shows a lower computational overhead on the user side. Therefore, it offers an efficient and adequate alternative for the implementations in the mobile environment with limited computing capability.     

Institution-based trust in interorganizational exchange relationships: the role of online B2B marketplaces on trust formation

Given the uncertainty of online transactions, the digital economy encourages the creation of institutional structures that assure online interorganizational exchange relationships. This research examines how institution-based trust develops in online B2B marketplaces to facilitate interorganizational trust (buyers' trust in sellers). Building upon the notion of institutional trust [Zucker,1986], this study proposes how specific institution-based structures help engender interorganizational trust and indirectly influence transaction success in B2B marketplaces. Five specific institution-based mechanisms are proposed—perceived monitoring, perceived legal bonds, perceived accreditation, perceived feedback, and perceived cooperative norms. To assess the influence of the proposed two dimensions of interorganizational trust—credibility and benevolence—in buyer–seller relationships, three trust outcomes are examined—satisfaction, perceived risk, and continuity. The proposed model is tested on data from 102 organizational buyers in an online B2B marketplace. The results support the proposed model, delineating the relationship between institution-based trust and interorganizational trust. The study provides evidence on how specific institutional mechanisms build trust in online B2B marketplaces, stressing the ability of institution-based trust to build a trustworthy trading environment in the digital economy. The paper discusses the theoretical and managerial implications of this study and proposes several suggestions for future research.     

Developing a B2B E-Commerce Implementation Framework: A Study of EDI Implementation for Procurement

ABSTRACT

A case study was performed examining the electronic data interchange (EDI) implementation projects of four divisions of an aerospace company. By interviewing both partners in the relationship, a business-to-business (B2B) electronic commerce (e-commerce) implementation framework was developed. The framework provides guidelines for the type of e-business partnership to be pursued based on the volume of transactions (low vs. high) and complexity of transactions (simple vs. complex). Machine-to-machine B2B solutions should be pursued when the there is a high transaction volume of simple transactions. In other situations, potential B2B solutions include: e-business pull, partner access-extranet/push, or manual e-transmission.     

Developing a B2B E-Commerce Implementation Framework: A Study of EDI Implementation for Procurement

A case study was performed examining the electronic data interchange (EDI) implementation projects of four divisions of an aerospace company. By interviewing both partners in the relationship, a business-to-business (B2B) electronic commerce (e-commerce) implementation framework was developed. The framework provides guidelines for the type of e-business partnership to be pursued based on the volume of transactions (low vs. high) and complexity of transactions (simple vs. complex). Machine-to-machine B2B solutions should be pursued when the there is a high transaction volume of simple transactions. In other situations, potential B2B solutions include: e-business pull, partner access-extranet/push, or manual e-transmission.     

The e-commerce value matrix and use case model: A goal-driven methodology for eliciting B2C application requirements

We developed a goal-driven methodology for eliciting and modeling the requirements of a business-to-consumer application. It has two phases: e-commerce strategy formulation and eliciting system requirements. In the first phase, an EC value matrix is used to develop a strategy and value-adding services for a business and then necessary customized requirements are identified. In the second phase, a goal-driven approach is used to specify the system requirements based on the strategy. This methodology enables business managers and system developers to develop high-level strategies that improve value activities and obtain competitive advantage, and thereby determine the specifications of the core e-services. To illustrate the methodology, we use a B2C application of an online bookstore. Finally, implications and conclusions are discussed.     

The impact of electronic markets: the case of the Dutch Flower Auctions

The concept of electronic markets has been widely researched. There is, however, less experience with its operation and even less with the organisational impact that electronic markets can have on specific companies and sectors. This case study discusses a very specific market which is gradually moving into the electronic age: the Dutch Flower Auction. This auction is the world marketplace for flowers and pot plants. This case is unusual both in terms of industry (agriculture) and the specific nature of the goods dealt with (highly perishable and fragile, where quality is based on perception). This study, therefore, has been particularly revealing for the use of electronic markets as a strategic response in a changing marketplace.     

UNICORE: uniform access to supercomputing as an element of electronic commerce

The battle for the desktop has been won by workstations and PCs. Offering computational capacity adequate for most applications, and superior user interfaces, they also incorporate the user’s link to a global information base via the World Wide Web. By contrast, High Performance Computing facilities tend to be increasingly isolated by such deterrents as geographical remoteness, architectural individuality, and the non-uniform operational policies of autonomous centres. The future of such centralised Supercomputing facilities and large scale data resources may depend to a large extent on the development of interfaces for accessing their resources from the user’s desktop in a uniform and user-friendly manner; otherwise, High Performance Computing may fall short of its full potential, becoming increasingly specialised and less competitive. In the most pessimistic scenario, the volume of the HPC market could fall below the threshold required for its economic survival in the free marketplace. The Uniform Interface to Computing Resources (UNICORE) project addresses these issues using the mechanisms of the World Wide Web (WWW).     

A fuzzy logic-based system for assessing the level of business-to-consumer (B2C) trust in electronic commerce

The purpose of this paper is to present an application of fuzzy logic to human reasoning about electronic commerce (e-commerce) transactions. This paper uncovers some of the hidden relationships between critical factors such as security, familiarity, design, and competitiveness. We analyze the effect of these factors on human decision process and how they affect the Business-to-Consumer (B2C) outcome when they are used collectively. This research provides a toolset for B2C vendors to access and evaluate a user's transaction decision process, and also an assisted reasoning tool for the online user.     

An analysis of privacy signals on the World Wide Web: Past, present and future

Electronic commerce is now an established, vital part of the world economy. However, this economic sector is currently endangered by consumers’ well-founded concern for the privacy of their information. Recent surveys indicate that this concern is beginning to alter consumers’ spending habits. The World Wide Web Consortium is well aware of these concerns, and has produced the Platform for Privacy Preferences Protocol as a mechanism to help consumers protect their online privacy. This mechanism relies on the use of machine-readable privacy policies, posted on a website, and interpreted by a client-side browser extension. However, recent surveys indicate that adoption of this technology is stagnating on the server side, and work on an updated version of the Platform has been halted. We use signaling theory as a framework to model the likely future evolution of the Platform, in an effort to gauge whether it will flourish or wither as a technology. We find that signaling theory predicts the collapse of the Platform for Privacy Preferences Protocol. However, we also find theoretical and empirical grounds to predict that government intervention can drive adoption of the Platform on the server side, which may in turn bootstrap user adoption of this technology.     

The effect of electronic books on enhancing emergent literacy skills of pre-school children

The purpose of this study was to investigate the effects of e-books on enhancing Jordanian preschool children's emergent literacy skills (experimental group), in comparison to children who were exposed to regular printed books (control group). To achieve the objectives of this study, the total of 92 children were assigned to either experimental group (n = 48) and control group (n = 44). The pre- and post-test data was collected on print awareness, vocabulary, alphabetic knowledge and phonological awareness skills to determine the effectiveness of e-books. The results indicated that children in experimental group performed significantly better than the children in control group. Moreover, significant differences were found according to gender, as the female children exhibited superior emergent literacy skills to the male children. Regarding the different emergent literacy skills, children in the experimental group achieved better improvement in the areas of print awareness and vocabulary. Based on these findings, it is recommended that pre-school institutions incorporate e-books activities into their classrooms.     

Using interpretive structural modeling and fuzzy analytical process to identify and prioritize the interactive barriers of e-commerce implementation

The main purpose of this study is to present a novel and useful application of a specific analytical technique to indicate the interactions and calculate the ranking of the barriers of electronic commerce (EC) in the Iran Khodro industrial group, a leading Iranian automotive company, using the combination of two techniques: interpretive structural modeling (ISM) and the fuzzy analytical network process (FANP). Based on an in-depth review of the relevant literature and interviews with managers and experts from the company, thirteen barriers and challenges to the implementation of e-commerce were determined and categorized into four main factors: technical, organizational, individual, and environmental. In the following step, the ISM technique is applied to construct a structural graph and identify inherent interactions among these barriers. The FANP is then used to quantify the relationships and weigh the significance of these barriers. The results obtained from the proposed model reveal that a “lack of awareness regarding the benefits and nature of electronic commerce” is the most important barrier to the implementation of e-commerce. This type of modeling approach can be extremely valuable for companies that wish to focus their efforts and resources on removing the most important barriers and challenges toward the successful implementation of EC.     

Consumer's decision to shop online: The moderating role of positive informational social influence

While much of the current literature tends to focus on the direct effect of social influence on consumer online shopping behavior, our study drew heavily on social influence theory and argued for an alternative theory focusing on the moderating role of social influence. In particular, we explored how positive messages in online discussion forums may affect consumers’ decisions to shop online. We used a laboratory experiment in which the treatment group was required to read positive messages about online shopping experience in an online discussion forum. Positive social influence was found to reinforce the relationship between beliefs about and attitude toward online shopping, as well as the relationship between attitude and intention to shop. We believe our alternative theory provides new insight into the complex processes through which social influence is brought to bear on consumers’ online shopping decisions. Implications of our work are discussed.     

The impact of use context on mobile services acceptance: The case of mobile ticketing

The most important factor in the decision to adopt mobile systems is user perception of their value. However, behavioral theory suggests that context affects user attitude and therefore influences acceptance. We therefore hypothesized that the benefits of mobile systems should be evaluated against users’ contextual needs and that reduced dependence on time and place required providing service at any time and place needed by the user. Mental costs or costs of learning to use the system, however, may not be evaluated in the same way, because system use and learning about it are acts with different contexts. Our findings advance knowledge of IT adoption and suggest that we should start to identify the contexts of both the benefits of use and in learning to use the system.