IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v143y2022icp72-80.html
   My bibliography  Save this article

How B2B platform improves Buyers’ performance: Insights into platform’s substitution effect

Author

Listed:
  • Zhou, Liying
  • Mao, Hongyi
  • Zhao, Taiyang
  • Wang, Valerie Lynette
  • Wang, Xiaodong
  • Zuo, Peng

Abstract

Platforms are observed to gradually replace traditional pipeline supply chains. To better understand how platforms can assist business buyers in improving their bottom-line, this study investigates the influence of platform usage on three aspects of buyers’ performance. We build a theoretical framework focused on the roles of trust and transaction cost, and the moderating effects of transaction frequency. Using a sample of 314 buyer firms who are enrolled on a major e-commerce platform within the past ten years, we find that platform usage increases trust and decreases transaction cost for buyer firms, both of which in turn improve the buyers’ relationship performance, supplier performance and market performance. We also reveal a positive moderating effect of transaction frequency in this framework. The findings highlight the substitution effect of platforms in replacing traditional supply chains and what it means for business buyers.

Suggested Citation

  • Zhou, Liying & Mao, Hongyi & Zhao, Taiyang & Wang, Valerie Lynette & Wang, Xiaodong & Zuo, Peng, 2022. "How B2B platform improves Buyers’ performance: Insights into platform’s substitution effect," Journal of Business Research, Elsevier, vol. 143(C), pages 72-80.
    • Handle: RePEc:eee:jbrese:v:143:y:2022:i:c:p:72-80
    DOI: 10.1016/j.jbusres.2022.01.060
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322000728
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.01.060?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. C Zhang & S T Cavusgil & A S Roath, 2003. "Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 550-566, November.
    2. Corey C. Phelps & Ralph Heidl & Anu Wadhwa, 2012. "Networks, knowledge, and knowledge networks: A critical review and research agenda," Post-Print hal-00715591, HAL.
    3. Wang, Cheng Lu & Chung, Henry F.L., 2013. "The moderating role of managerial ties in market orientation and innovation: An Asian perspective," Journal of Business Research, Elsevier, vol. 66(12), pages 2431-2437.
    4. Balasubramanian, Ganesh & Ponnachiyur Maruthasalam, Arulanantha Prabu, 2021. "Substitution effect of retailer store brand and manufacturer encroachment," International Journal of Production Economics, Elsevier, vol. 239(C).
    5. Bharadwaj, Neeraj & Matsuno, Ken, 2006. "Investigating the antecedents and outcomes of customer firm transaction cost savings in a supply chain relationship," Journal of Business Research, Elsevier, vol. 59(1), pages 62-72, January.
    6. Padgett, Daniel & Hopkins, Christopher D. & Williams, Zac, 2020. "Buyer dependence in B2B relationships: The role of supplier investments, commitment form, and trust," Journal of Business Research, Elsevier, vol. 119(C), pages 13-24.
    7. Minguet, Albert, 1975. "Substitution and output effects in the neoclassical theory of the firm under imperfect competition," European Economic Review, Elsevier, vol. 6(1), pages 39-57, January.
    8. Liu, Yen-Hung Steven & Deligonul, Seyda & Cavusgil, Erin & Chiou, Jyh-Shen, 2018. "Always trust in old friends? Effects of reciprocity in bilateral asset specificity on trust in international B2B partnerships," Journal of Business Research, Elsevier, vol. 90(C), pages 171-185.
    9. Patrick Loux & Mathilde Aubry & Sébastien Tran & Emmanuel Baudoin, 2020. "Multi-sided platforms in B2B contexts : the role of affiliation costs and interdependencies in adoption decisions," Post-Print hal-02376313, HAL.
    10. Erin Anderson, 1985. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 4(3), pages 234-254.
    11. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    12. Srilata Zaheer & Akbar Zaheer, 2006. "Trust across borders," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 21-29, January.
    13. Stephanie M. Mangus & Eli Jones & Judith Anne Garretson Folse & Shrihari Sridhar, 2020. "The interplay between business and personal trust on relationship performance in conditions of market turbulence," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1138-1155, November.
    14. Teo, Thompson S.H. & Yu, Yuanyou, 2005. "Online buying behavior: a transaction cost economics perspective," Omega, Elsevier, vol. 33(5), pages 451-465, October.
    15. Wu, Ruijuan & Chen, Jiuqi & Lu Wang, Cheng & Zhou, Liying, 2022. "The influence of emoji meaning multipleness on perceived online review helpfulness: The mediating role of processing fluency," Journal of Business Research, Elsevier, vol. 141(C), pages 299-307.
    16. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    17. Sarv Devaraj & Ming Fan & Rajiv Kohli, 2002. "Antecedents of B2C Channel Satisfaction and Preference: Validating e-Commerce Metrics," Information Systems Research, INFORMS, vol. 13(3), pages 316-333, September.
    18. Jeffrey H. Dyer & Wujin Chu, 2003. "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea," Organization Science, INFORMS, vol. 14(1), pages 57-68, February.
    19. Gomaa Agag, 2019. "E-commerce Ethics and Its Impact on Buyer Repurchase Intentions and Loyalty: An Empirical Study of Small and Medium Egyptian Businesses," Journal of Business Ethics, Springer, vol. 154(2), pages 389-410, January.
    20. Constantine S Katsikeas & Dionysis Skarmeas & Daniel C Bello, 2009. "Developing successful trust-based international exchange relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(1), pages 132-155, January.
    21. Yoon, Jeomhong & Moon, Junyean, 2019. "The moderating effect of buyer purchasing strategy on the relationship between supplier transaction-specific investment and supplier firm performance," Journal of Business Research, Elsevier, vol. 99(C), pages 516-523.
    22. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    23. Broekhuizen, T.L.J. & Emrich, O. & Gijsenberg, M.J. & Broekhuis, M. & Donkers, B. & Sloot, L.M., 2021. "Digital platform openness: Drivers, dimensions and outcomes," Journal of Business Research, Elsevier, vol. 122(C), pages 902-914.
    24. Aric Rindfleisch & Kersi Antia & Janet Bercovitz & James Brown & Joseph Cannon & Stephen Carson & Mrinal Ghosh & Susan Helper & Diana Robertson & Kenneth Wathne, 2010. "Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities," Marketing Letters, Springer, vol. 21(3), pages 211-222, September.
    25. Oliver E. Williamson & Scott E. Masten (ed.), 1995. "Transaction Cost Economics," Books, Edward Elgar Publishing, volume 0, number 594.
    26. Thomas Davenport & Abhijit Guha & Dhruv Grewal & Timna Bressgott, 2020. "How artificial intelligence will change the future of marketing," Journal of the Academy of Marketing Science, Springer, vol. 48(1), pages 24-42, January.
    27. Sean M. Handley & Corey M. Angst, 2015. "The impact of culture on the relationship between governance and opportunism in outsourcing relationships," Strategic Management Journal, Wiley Blackwell, vol. 36(9), pages 1412-1434, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bag, Surajit & Sabbir Rahman, Muhammad & Choi, Tsan-Ming & Srivastava, Gautam & Kilbourn, Peter & Pisa, Noleen, 2023. "How COVID-19 pandemic has shaped buyer-supplier relationships in engineering companies with ethical perception considerations: A multi-methodological study," Journal of Business Research, Elsevier, vol. 158(C).
    2. Suuronen, Sami & Ukko, Juhani & Saunila, Minna & Rantala, Tero & Rantanen, Hannu, 2024. "The implications of multi-sided platforms in managing digital business ecosystems," Journal of Business Research, Elsevier, vol. 175(C).
    3. Zhengwei Li & Yadan Zheng & Xin Zhao, 2024. "The impacts of platform owner entry on prospective complementors’ intention to join: Discouraged by deterrent or attracted by good reputation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-16, December.
    4. Vu Minh Ngo & Huan Huu Nguyen & Hiep Cong Pham & Hung Manh Nguyen & Phuc Vinh Dang Truong, 2023. "Digital supply chain transformation: effect of firm’s knowledge creation capabilities under COVID-19 supply chain disruption risk," Operations Management Research, Springer, vol. 16(2), pages 1003-1018, June.
    5. Zhou, Liying & Jin, Fei & Wu, Banggang & Chen, Zhi & Wang, Cheng Lu, 2023. "Do fake followers mitigate influencers’ perceived influencing power on social media platforms? The mere number effect and boundary conditions," Journal of Business Research, Elsevier, vol. 158(C).
    6. Huawei Tian, 2023. "Does consumer social responsibility augment corporate social responsibility: A reciprocal analysis of external stakeholder from stakeholder theory perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 968-978, March.
    7. Feilan Wang & Mengmeng Jin & Jianfeng Li & Yushuo Zhang & Junbo Chen, 2022. "Profound Impact of Economic Openness and Digital Economy towards a Sustainable Development: A New Look at RCEP Economies," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    8. Fan, Mengli & Xing, Wei & Huang, Yi, 2023. "Joint forward contract negotiation: The role of B2B procurement platforms," Journal of Business Research, Elsevier, vol. 167(C).
    9. Ataman Nikian & Hassan Khademi Zare & Mohammad Mehdi Lotfi & Mohammad Saber Fallah Nezhad, 2023. "Redesign of a sustainable and resilient closed-loop supply chain network under uncertainty and disruption caused by sanctions and COVID-19," Operations Management Research, Springer, vol. 16(2), pages 1019-1042, June.
    10. Sen, Argha & Kumar, Alok & Dubey, Vivek & Gupta, Aditya, 2023. "Managing two-sided B2B electronic markets: Governance mechanisms, performance implications, and boundary conditions," Journal of Business Research, Elsevier, vol. 169(C).
    11. Mengmeng Wang & Shufeng (Simon) Xiao, 2022. "How Do Political and Business Ties Matter for Supply Chain Management Capability? An Empirical Test of an Integrative Framework," Sustainability, MDPI, vol. 15(1), pages 1-14, December.
    12. Wu, Qihan & Yan, Dong & Umair, Muhammad, 2023. "Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1103-1114.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carole Couper & A. Rebecca Reuber & Shameen Prashantham, 2020. "Lost that lovin’ feeling: The erosion of trust between small, high-distance partners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 326-352, April.
    2. Liu, Steven Y.H. & Napier, Elizabeth & Runfola, Andrea & Cavusgil, S. Tamer, 2020. "MNE-NGO partnerships for sustainability and social responsibility in the global fast-fashion industry: A loose-coupling perspective," International Business Review, Elsevier, vol. 29(5).
    3. Cumming, Douglas & Ge, Ying & Lai, Huiwen, 2020. "Trust and quality uncertainty in global value chains," Journal of Multinational Financial Management, Elsevier, vol. 57.
    4. Liu, Yen-Hung Steven & Deligonul, Seyda & Cavusgil, Erin & Chiou, Jyh-Shen, 2018. "Always trust in old friends? Effects of reciprocity in bilateral asset specificity on trust in international B2B partnerships," Journal of Business Research, Elsevier, vol. 90(C), pages 171-185.
    5. Tengjian Zou & Gokhan Ertug & Ilya R. P. Cuypers & Donald L. Ferrin, 2023. "Trust across borders: a review of the research on interorganizational trust in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1379-1401, October.
    6. Nicholas Paparoidamis & Constantine Katsikeas & Ruben Chumpitaz, 2017. "The role of supplier performance in building customer trust and loyalty: A cross-country examination," Post-Print hal-01745331, HAL.
    7. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    8. Bianchi, Constanza & Abu Saleh, Md., 2020. "Investigating SME importer–foreign supplier relationship trust and commitment," Journal of Business Research, Elsevier, vol. 119(C), pages 572-584.
    9. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    10. Griessmair, Michele & Hussain, Dildar & Windsperger, Josef, 2014. "Trust and the tendency towards multi-unit franchising: A relational governance view," Journal of Business Research, Elsevier, vol. 67(11), pages 2337-2345.
    11. Cristina López-Duarte & Marta M. Vidal-Suárez & Belén González-Díaz & Nuno Rosa Reis, 2016. "Understanding the relevance of national culture in international business research: a quantitative analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(3), pages 1553-1590, September.
    12. Oliver Schilke & Karen S. Cook, 2015. "Sources of alliance partner trustworthiness: Integrating calculative and relational perspectives," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 276-297, February.
    13. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 0. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-34.
    14. Wang, Mengyang & Zheng Zhou, Kevin & Bai, Xuan & Li, Jiaxuan, 2024. "Trust asymmetry and changes in supplier opportunism: An institutional contingency view," Journal of Business Research, Elsevier, vol. 174(C).
    15. Teck Ming Tan & Saila Saraniemi, 2023. "Trust in blockchain-enabled exchanges: Future directions in blockchain marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 914-939, July.
    16. Matthew J. Robson & Constantine S. Katsikeas & Daniel C. Bello, 2008. "Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity," Organization Science, INFORMS, vol. 19(4), pages 647-665, August.
    17. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 2022. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1011-1044, August.
    18. Ellegaard, Chris & Medlin, Christopher J., 2018. "Finding good relationships – intended and realized relational governance of international fine wine exchanges," Journal of World Business, Elsevier, vol. 53(6), pages 794-805.
    19. Capaldo, Antonio & Giannoccaro, Ilaria, 2015. "How does trust affect performance in the supply chain? The moderating role of interdependence," International Journal of Production Economics, Elsevier, vol. 166(C), pages 36-49.
    20. Michael A Sartor & Paul W Beamish, 2018. "Host market government corruption and the equity-based foreign entry strategies of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 346-370, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:143:y:2022:i:c:p:72-80. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.