One of the advantages of electronic trading is the ability of the technology to deliver transaction benefits; these can have a significant impact on organisations regardless of organisational size. However, despite the potential of the e-marketplace to deliver organisational benefits there have been limited studies which consider the strategic implementation of e-marketplace trading.
Organisational strategy and the implementation of strategic initiatives involve interactions between organisational structures and agents. The analytical dualism this represents complicates uncovering the fundamental causes of e-marketplace participation. Not only does the adoption of e-marketplace trading impact on the buyer and supplier organisations, it introduces the e-marketplace vendor organisation and the e-marketplace technology into the participation decision.
The complexity of the interactions across organisational structures and between organisational agents and technology adoption can produce a diversity of outcomes. The philosophical underpinning of critical realism for the study is supported by the lack of understanding as to why, and in what circumstances, organisations successfully participate in e-marketplace trading. The critical realist philosophy provides the opportunity to understand the interrelationships between context, organisational structures and agents and identify the causal mechanisms involved in producing various outcomes.
It allows for the development of middle level theory as existing theories are examined to explain the perceived phenomena. Large organisations operating in Western Australia are used as case studies to uncover the causal relationships between context, structures and agents that can produce successful, strategic implementation of e-marketplace participation. Existing literature in relation to e-marketplaces and IT adoption is used to develop the research questions and formulate the interview questions.
The structured case methodology is used to analyse each case and relate the findings to possible explanatory theories. Context, mechanism and outcome patterns, identified in each case, are presented. Building on economic market, institutional and network theories the research identifies organising vision theory and community discourse as explanations for organisational legitimation that can circumscribe the use of e-marketplace trading.
Six types of community group that influence organisational adoption of e-marketplace technology are identified. The research suggests that the influence of these groups within the organisation, the fit with organisational culture and strategic objectives can prevent or instigate change.
Further, the decision making process supported by the group or group member is more influential in the strategic adoption of the e-marketplace than the ability of the technology to deliver efficiency or transaction processing gains.
This implies that technology adoption studies should include contextual and environmental issues and practitioners should examine how much their decision making is influenced by organisational and environmental features. The thesis contributes to the discussion on organising vision theory, e-marketplace trading and business value creation.
Buyers also gain additional business intelligence into how and where they are spending their dollars, along with quantifying supplier performance. This information offers buyers the ability to better manage their budgets, monitor supply quality, and reduce maverick buying. Participating in e-marketplaces gives buyers real-time access to current product and service information. It reduces the time required to contact multiple distributors and manufacturers using paper or telephone approaches.
The value to suppliers is equally substantial. Automating the supply chain process allows suppliers to receive more accurate orders, which translates into faster response and cycle times and less time spent on customer service issues. Improving order accuracy will ultimately reduce costs. In an e-marketplace, suppliers are able to update and add product information electronically and instantaneously, reducing the delays associated with printed catalog distribution and eliminating outdated information being used by buyers.
It also reduces expenses such as printing and distributing paper catalogs, and administrative time processing orders manually. In addition, an e-marketplace allows visibility into inventory levels and placement. View 1 excerpt, references background. The number of business-to-business electronic marketplaces B2B e-marketplaces reached a peak in after which a period of consolidation took place Day et al.
The significance of … Expand. Narratives of Change: Discourse, Technology and Organization. This article develops an understanding of organizational change predicated on the idea of organization as a performance or an effect, rather than a stable social structure. It uses the concept of … Expand. Social practices as units of value creation: theoretical underpinnings and implications. Purpose — The purpose of this paper is to conceptually examine how value is created in social practices in which consumers use offerings as operand resources.
View 2 excerpts, references background. Transaction costs and information systems: does IT add up? Highly Influential. View 3 excerpts, references background. Perspectives of the e-marketplace by multiple stakeholders.
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