Previous research indicated that the performance of interorganizational processes in electronic markets and hierarchies is influenced by eight factors: stakeholders, competition, information technology, market network (re)design, risk, process (re)design, information, and trust. This paper focuses on the inter-organizational processes related to the settlement (clearing) of cross border Euro pa...

Improved consumer addressability in electronic markets allows vendors to send focused promotional messages to specific customers, facilitating a targeted advertising approach that we call “narrowcasting”. We characterize a rational consumer’s market participation decision and identify a narrowcasting firm’s optimal targeting decision when buyers face nontrivial search costs. In the special case...

Electronic intermediaries enable and support electronic markets with their services. This paper provides a framework based on industrial dynamics theory, for the analysis of the influence of electronic intermediaries on the performance of markets. We define five market performance indicators based on the analysis of 10 well-described cases from the literature on electronic markets that were set...

With the advent of the Internet, we have seen existing markets transform and new ones emerge. In this paper, we contribute to the understanding of this phenomenon by developing a unified theory about the role that IT plays in affecting market information, transparency and market structure. In particular, we introduce a new theoretical framework which uncovers the process and the forces that, to...

Negotiation can be regarded as playing a game with certain rules. If the rules change, the game has to be played differently. Compared to traditional markets, electronic markets can have fundamentally different characteristics such as cost structure or the level of transparency. These differences have already stimulated the tremendous success of one breed of electronic market negotiations: auct...

Several authors have argued that because modern computing and communications technologies reduce buyer search costs and other market inefficiencies, there should be intense price competition between sellers in electronic markets. This paper examines this prediction using data on the airline ticket offerings of online travel agents (OTA). We find that different OTAs offer tickets with substantia...

legal actions remains sufficiently predictable. Such predictions on legal conflicts have to be shared among economic actors to stabilize mutual expectations of behavior. This stability then helps to reduce legal risks. Predictability is not necessarily related to precise legal knowledge. It is sufficient to know when legal specialists have to get involved. Economic actors prepare for such situa...

Entrepreneurs in electronic markets move in industries where a strong corporate brand can deliver competitive advantage through differentiation. It not only facilitates increased attention. Despite ever-increasing followers and me-too products, it enables a company to build a positive image on behalf of the relevant target groups – be they consumers/customers, shareholders, employees, or indust...

Enterprises face stiff competition and the pressure to improve efficiency and productivity. Since the cost of production could be reduced in the last years, further reductions can be obtained e.g. by spreading production processes over organizational boundaries to use the key competencies of the involved organizations. This shift increases the number of external links and transactions of enterp...

Newcomers to electronic markets are forced to accumulate customers as rapidly as possible. One strategy to fulfil this aim is so called viral marketing, which seems an appropriate term for describing the pattern in which Internet companies spread by making use of customer referrals. The aim of this article is to describe and explain common features of viral marketing strategies and to outline c...