A case study exploring drivers and implications of collaborative electronic logistics marketplaces

Since the 1990s there has been a rich literature on business-to-business electronic marketplaces. While many aspects of supply chain management have been considered, there are only a few studies which investigate the development and application of these electronic marketplaces in logistics. These can be termed Electronic Logistics Marketplaces (ELM). The paper aims to understand the rationale behind a particular type of ELM, termed ‘collaborative ELM’, and evaluates the impact of introducing such an ELM. To do this, an in depth case study in the UK fast moving consumer goods industry is used. Data has been collected from shippers, transport companies and the technology provider using a range of tools, including interviews, quantitative data analysis and process mapping. The research reveals that the collaborative ELM is still a relatively new business model. It has potential for growth in optimizing supply chain networks and enabling not only vertical collaboration between shippers and carriers but also horizontal collaboration between shippers and/or between carriers. It identifies the motives behind a collaborative ELM, and demonstrates how such a system is implemented through the configurations of information system, process and collaborative arrangements. The impact on the different participating parties is also examined. Finally the necessary conditions for a successful implementation are derived in the light of the research findings.     

The antecedents of client loyalty in business-to-business (B2B) electronic marketplaces

The globalization of economic activity and the emergence of the Internet have led to the appearance of a new model of business-to-business (B2B) known as the electronic B2B market or e-marketplace which facilitates the establishment of marketing relationships between buyers and sellers. In view of the limited research in this area, the present study examines the elements that may influence client (i.e., user) loyalty in this context. The basis of the study is an analysis of empirical data provided by 197 Spanish e-marketplace selling-side users, investigating the influence of image, quality, satisfaction, and value on client loyalty. The results indicated that satisfaction had no direct impact on client loyalty, but that the e-marketplace's image and user-perceived quality and value are antecedents of its clients' loyalty.     

Carve-outs under airline antitrust immunity

This paper offers the first formal economic analysis of carve-outs under airline antitrust immunity. Carve-outs are designed to limit the potential anticompetitive effects of cooperation by alliance partners in hub-to-hub markets, where they provide overlapping nonstop service. While the paper shows that carve-outs are beneficial when the alliance does not involve full integration of the partners' operations on the hub-to-hub route, its key point is that a carve-out may be harmful when imposed on a joint-venture alliance. A JV alliance involves full exploitation of economies of traffic density on the hub-to-hub route, and a carve-out prevents the realization of these benefits. While a carve-out may limit anticompetitive incentives on the hub-to-hub route, welfare may be reduced if the resulting gains are overshadowed by the efficiency loss generated by the carve-out.     

Duopolistic competition between independent and collaborative business-to-business marketplaces

This paper studies imperfect price competition between two intermediaries in an electronic business-to-business matching market with indirect network externalities. The intermediaries have different ownership structures: an independent incumbent competes with a collaborative buy side consortium to attract buying and selling firms. When firms can register exclusively with one intermediary, the incumbent can deter entry only if the number of consortium owners is sufficiently small. Otherwise, the consortium can enter and monopolize the market. When firms can register with both intermediaries simultaneously, the consortium can always enter and both intermediaries stay in the market with positive profits.     

The impact of market freedom on the adoption of third-party electronic marketplaces: A fuzzy AHP analysis

Electronic-marketplace (EM) is an innovative model for interfirm transactions that are undertaken via the Internet. However, in view of higher investment costs and other associated risks, many small and medium-sized enterprises (SMEs), instead of establishing their own EMs, turn to adopt third-party-hosted EMs. In literature, most relevant studies to the adoption of the third-party-hosted EM were conducted on the research contexts of free market. Industries under the protection of government policies may have limited degree of market freedom, different from industries without these protection policies. Thus, this study intends to compare the decision choice of EM adoption between industries with various degree of market freedom. The decision choice of EM adoption consisted of many strategic factors that were constructed in terms of a three-layer hierarchical structure proposed in this paper. A fuzzy analytic hierarchical process (Fuzzy AHP) was utilized to estimate the relative importance of these individual strategic factors involved in the decision-making process of adopting third-party EMs. The research findings indicated there were some similarities and differences in the decision choice between the two industries of interest. The variety of market freedom can account for the differences in the decision choice of EM adoption. In addition to enhancing our understanding of the EM adoption decision of participative companies, the research findings also provide insightful information to third-party EM providers so that they may improve the effectiveness and efficiency of resource allocation.     

Global marketing effectiveness via alliances and electronic commerce in business-to-business markets

Numerous changes in the global business climate have intensified global competition through new forms of competition as well as the addition of new competitors. As a result, domestic and international firms have to develop and implement marketing strategies that are aligned with the current global competitive realities. This study explores the influence of three overarching developments that stand out as having a dominating role in the shifting international competitive landscape: (1) the rapid growth of global business activities by existing firms and new entrants, for example, through increased international outsourcing (i.e., the intensification of importing activities); (2) the transition to managing supply chain systems through greater coordination of entire distribution channels, alliances, and relational exchanges; and (3) the emergence and increased strategic deployment of electronic forms of exchange, particularly with respect to information access, storage, and retrieval, as means of more efficient management of domestic and global network of operations and market intelligence. Managerial and research implications of these trends are discussed.     

Electronic marketplaces and supply chain relationships

Electronic marketplaces and supply chain management (SCM) are two notions, which have attracted much attention among both academicians and practitioners during the last 5 years. However, the discussion of the relationship between the two notions has been limited and fragmented. In this paper, we will present a critical summary of the discussion of Internet-driven electronic marketplaces (IEMPs) based on an extensive literature review. Then, we will discuss the interrelation between IEMP and SCM from a procurement portfolio perspective. Our proposition is that different types of buyer-supplier relationships require different types of IEMPs. We propose a relationship/IEMP-grid that should help to identify the right selection strategy for IEMP in various procurement situations. Finally, we present proposals for future research within this area.     

Electronic transportation marketplaces: a transaction cost perspective

Electronic transportation marketplaces (ETMs) are Internet-based mechanisms that match buyers and sellers of transportation services. With claims of reducing the administrative costs of transportation procurement to virtually nothing, the allure of ETMs is considerable. Shippers (transportation buyers) must therefore determine whether to pursue the new-founded opportunity and buy transportation services through an Internet-based intermediary or to buy services in a traditional manner. To date, there has been little structured thought on the topic to guide managers. Transaction cost economics (TCE) provides a robust framework toward this end. The TCE framework is adapted to present the procurement decision as one of “make” versus “buy.” The analysis is designed to help firms navigate their own determination to use an ETM and, when considered, the most appropriate form of ETM. The merits and caveats of ETM adoption are presented in the article.     

A panel data analysis of code-sharing,antitrust immunity,and open skies treaties in international aviation markets

This paper estimates the effects of code-sharing, antitrust immunity, and Open Skies treaties on prices, output, and capacity using an eleven-year panel of U.S.-Europe data. Code-sharing and immunized alliances are found to have significantly lower prices than does traditional interline (multi-carrier) service, but the effects are smaller in magnitude than those found in previous results that rely on cross-sectional data. Statistical tests that prices for immunized alliance service are equal to online (single carrier) service often cannot be rejected, providing additional evidence that immunity grants allow immunized carriers to internalize a double marginalization problem. Estimated output effects, consistent with the price effects, show that alliances are associated with large increases in passenger volumes. Lastly, estimates suggest that capacity expansions associated with “Open Skies” treaties are due entirely to expansion by immunized carriers on routes between their hubs. I would like to thank the editor and an anonymous referee for their helpful comments. The views expressed in this paper do not reflect those of the US Department of Justice. All errors are my own     

Sustainability and business-to-business marketing: A framework and implications

Researchers in several business disciplines have convincingly argued that environmentally responsible strategies can contribute to competitive advantage and superior financial performance. While debates on ecological conservation and environmental practices within marketing have raged for over three decades, much of the focus has been on identifying and targeting the environmentally-conscious consumer. Less attention has been given to marketing's role in a green supply chain and its interface with environmentally-friendly manufacturing and operations. We integrate disparate streams of research and develop a broader framework to understand the appropriate role and focus of business-to-business marketing in the supply chain for achieving environmental sustainability objectives. We identify three major strategies - the reduction of surplus supply of products, reduction of reverse supply, and internal marketing - where marketing's role in environmental sustainability is crucial for achieving superior competitive advantage and financial performance.     

The Indian broadband plan: A review and implications for theory

Given the benefits of ubiquitous broadband deployment and availability that include economic growth, participation in the Internet economy and increased competitiveness, several countries have launched major national initiatives to accelerate broadband deployment including supporting such initiatives often as a part of their fiscal stimulus plans. These include Afghanistan, Australia, Brazil, India, Japan, New Zealand, South Korea, Singapore, Sweden, UK and USA and the European Union as a whole.     

The B2B-RELPERF scale and scorecard: Bringing relationship marketing theory into business-to-business practice

It is becoming increasingly important from both theoretical and managerial perspectives to measure Customer Relationship Management (CRM) as a key intangible asset. This paper seeks to bring relationship marketing theory into practice by developing a new measure of relationship performance between two firms, the business-to-business relationship performance (B2B-RELPERF) scale. Survey findings from a sample of approximately 400 purchasing managers operating in a B2B e-marketplace reveal that relationship performance is a high-order concept, composed of several distinct, yet related, dimensions: (1) relationship policies and practices, (2) relationship commitment; (3) trust in the relationship, (4) mutual cooperation; and (5) relationship satisfaction. Findings reveal that the B2B-RELPERF scale relates positively and significantly with customer loyalty. The paper also presents the B2B-RELPERF balanced scorecard, which combines tangible and intangible metrics. While existing IT solutions usually focus exclusively on the use of tangible CRM indicators, this new tool includes the “voice of the customer”. At the managerial level, both the scale and scorecard could act as useful instruments for short- and long-term management, controlling, planning, and improvement of B2B relationships. Implications for relationship marketing theory are also presented.     

The Decline of Antitrust Enforcement

American Antitrust policy has abandoned tight restrictions on mergers and on a variety of business practices, such as vertical restraints indistribution. I argue that the change is permanent for three reasons: 1)rising skepticism about government intervention generally, 2) lack ofdeleterious effects from the new policy, and 3) increasing irrelevance ofantitrust in global markets. Due process considerations will reinforce thechange in policy. New technologies may, however, revive traditionalantitrust concern with price fixing.     

Evolving electronic mail in a PTT

The convergence and expansion of products and services has critical implications for the strategic planning of PTTs, challenging traditional PTT monopoly supply arrangements. Viewing electronic mail as the keystone for office automation, John Morris provides an illustration of how, in the UK, the reshaping of British Telecom will enable the PTT to play an effective role in realizing the market potential of new information services.     

The Effect of Bid Rigging on Prices: A Study of the Highway Construction Industry

This paper examines the effect of multimarket contact in afirst price sealed bid government procurement auction market. It investigates whether bidprices in the highway construction industry are related to conditions that favor the formation of a cartel.Repeated contacts among firms are found to have a significantly positive effect on the winning low bidwhich leads to higher profit. Further, rivalry among few firms tends to exacerbate the multimarket effect.The results in this study additionally support the recent theoretical predictions that collusion isbetter sustainable during economic downturns.     

Commitment to Competition: An Assessment of Antitrust Agency Budgets since 1970

In these remarks to the Industrial Organization Society, I discuss the adequacy of antitrust enforcement resources in the U.S. Relevant resources are measured by the competition budgets of the Justice Department and the Federal Trade Commission. Since 1970 these have been influenced by the overall economy, its changing structure, and politics, but they have not kept up with the pace of mergers or other measures of the need for antitrust. Thus at present, the resources devoted to antitrust fall well short of what is required for continued vigilance over our growing and changing economy.     

Securing business-to-business relationships: The impact of switching costs

While the relationship marketing literature acknowledges the importance of switching costs for increasing customer retention, little is known about its relevance in industrial markets. In particular, it is unclear whether switching costs, and associated dimensions, impact on behavioral outcomes of buyer–seller relationships in business-to-business (B2B) markets. In order to contribute to theory development in this important area, our research first explores the dimensions of switching costs for the B2B domain and also tests the relative impact of these dimensions on business customers' actual purchase behavior. Results suggest that switching costs in B2B settings are a multi-faceted construct, including (i) procedural, (ii) financial, and (iii) relational switching costs. Moreover, we find relational switching costs to be most important for securing B2B buyer–seller relationships since they impact a customer's (a) share-of-wallet, (b) cross-buying behavior, and (c) actual switching behavior. While procedural switching costs only influence share-of-wallet, financial switching costs solely impact customer's cross-buying behavior. These findings contribute to a better understanding on how to secure B2B buyer–seller relationships.     

The role of sales representatives in cross-cultural business-to-business relationships

This study responds to the call for the “internationalization of sales research” by collecting data from 160 international buyers spanning 33 countries and regions. Based on survey data, archival sales records and cultural-distance indices, this research examines the performance-enhancing effect of sales rep-owned commitment as well as its antecedents under varying degrees of cultural distance. Our results show a strong and direct impact of rep-owned commitment, independent of the effect of firm-owned commitment, on enhancing performance indicators including sales volume, importers' purchase share, and importers' future purchase intentions. Moreover, we find two important antecedents to rep-owned commitment: benevolence trust and capability trust. Interestingly, cultural distance moderates the effects of benevolence and capability trust on rep-owned commitment: the larger the cultural distance, the stronger the effect of benevolence trust but the weaker the effect of capability trust. We conclude with theoretical and managerial implications to international marketing research and practice.     

Managing channels of distribution in the age of electronic commerce

The emergence of electronic commerce (e-commerce) has created a new business paradigm, one that presents marketers with noteworthy opportunities and challenges. Perhaps the greatest impact is in the area of channel management. The top issue for many business-to-business (B2B) firms today is channel conflict. In this paper, we investigate the effect of introducing the Internet channel into an already complex, multichannel distribution system from the perspective of the supplier firm. We describe strategies for proactively managing conflict, both externally with channel partners and internally among the subunits responsible for managing the channels. Twelve propositions for research are developed; eight relate directly to the marketing mix and four focus on channel communication and coordination. All of the research propositions offered are mechanisms by which suppliers can influence the level of channel conflict they experience. Dedicated channel management groups, documentation of channel strategies, and superordinate goals are identified as strategies for minimizing unwanted conflict.     

Infusing flexibility into business-to-business firms: A contingency theory and resource-based view perspective and practical implications

Two questions motivate this research. What conditions foster flexibility and how might business-to-business firms infuse flexibility throughout their organizations? A synthesis of the strategic management, marketing, and new product development literature was undertaken, which provided an updated interdisciplinary focus. Contingency theory and the resource-based view perspective were utilized to enhance our knowledge and emphasize the importance of flexibility and organizational performance. Superior intra- and inter-firm flexibility are proposed to influence business-to-business marketplace success.