Operations strategy and B2B eMarketplaces

This dissertation offers a broad exploration of B2B eMarketplaces from an operations strategy perspective. Employing a framework that links operations strategy to the two dominant business strategy perspectives—Industrial Organization Economics and the Resource Based View of the firm—the dissertation first establishes the importance of B2B eMarketplaces to operations practitioners. Next, it explores the literature to demonstrate the relative dearth of quantitative research. The dissertation also describes the creation and initial analysis of the largest known database of B2B eMarketplaces—drawing heavily upon previously published work by the author.; The first of the three research efforts examines a large proportion of the eMarketplace database to document the rate of failures and to explore any discernible patterns. The findings reveal a dramatic failure rate of 45% of the 942 eMarketplaces classified through a rigorous process involving contact with each entity. Though the results did not provide the expected support for several specific hypotheses, a discriminant analysis determined that consortia ownership was the most powerful predictor of survival.; The second analytical piece used the results of a follow-up survey to 273 surviving B2B eMarketplaces to determine the drivers of revenue and the time to achieve positive financial milestones. Multiple linear regression demonstrated a significant relationship between the dependent variables and five (of six) hypothesized drivers: Time to First Pilot, Consortia Ownership, eMarketplace Business Model, Funding to Service Ratio, and Number of Services.; The third analysis applied cost modeling to assess the impact of a shared distribution network supported by a retail/consumer products industry eMarketplace consortium like Transora, Worldwide Retail Exchange or Global Net Xchange. Modeling quantified the bottom-line impact on logistics cost for two hypothetical manufacturers. Through examination of 81 different combinations of variables across four scenarios, the modeling also revealed that smaller volume manufacturers have the most to gain through such structural supply chain collaboration—especially those shipping bulkier products with high demand variability.; The final chapter of the dissertation draws upon the prior materials to provide a synthesized perspective of B2B eMarketplaces. It also describes the planned next steps in continuing this fruitful research agenda.