Evaluating the Performance of Electronic Marketplaces: an Exploration of the Ownership Impact

In evaluating the performance of electronic marketplaces, research has focussed on the impact of factors such as IT, marketplace process design and competition. However, such research has neglected the impact of ownership upon electronic marketplace performance. This paper explores the issue of electronic marketplace ownership and contributes to the literature by revealing four distinct aspects of ownership of electronic marketplaces; investor structure, investor objectives, investor commitment and governance efficiency. Using a multiple case approach, the paper evaluates the performance of seven electronic marketplaces in order to determine the relationship between marketplace performance and ownership. The study reveals a multitude of investor objectives for their marketplace investment, broadly categorised as; transactional, financial or fear. The analysis reveals that investor objectives impact upon investor commitment levels with those investors interested in the transactional benefits of electronic marketplaces being most committed. Analysis also reveals that investor objectives impact upon how efficiently a marketplace is governed. Both investor commitment levels and governance efficiency in turn impact upon electronic marketplace performance in terms of the volumes traded on the electronic marketplace, electronic marketplace adoption levels and electronic marketplace revenues and profitability.