The Impact of Electronic Markets on B2B-Relationships

Abstract

Abstract. Although most of the predicted consequences of the internet-revolution in the 90s did not become reality, the internet has lead to sustainable changes in the organization of most industries. In particular, this is true for business-to-business (B2B) relations between firm. An obvious 'proof' for this is the rising number of socalled electronic markets-especially for B2B transactions-since several years. This paper should help to give a better understanding of the organizational impacts of electronic markets in the context of B2B relations. Therefore we use the incomplete contract framework to build a simple model of a repeated game. It will be shown that the existence of an (alternative) electronic market could influence the willingness to cooperate between the up-and the downstream firm in a B2B-relationship. In our special case, the willingness to cooperate by the buyer will decline.

Impact of e‐marketplace on supply chain under the markdown policy

“…In their work, some quantitative models are proposed to provide managers with a decision support for better management of supply chain in an e-commerce environment, arguing that companies may consider selling returned products or excess inventory at a higher price in e-marketplace. Haller (2002) investigated the impact of e-marketplace on B2B relationship between firms, demonstrating that the existence of emarketplace influences the willingness to cooperate between the upstream and downstream firms in a B2B relationship.…”