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Effects of business to business e-commerce platform-governance mechanisms on seller firms’ performance

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  • Li, Wenjie
  • Sun, Chaojing
  • Li, Yan
  • Ertz, Myriam

Abstract

The Chinese government’s quinquennial “Internet Plus” plan encompasses big data, cloud computing, and the Internet of Things for a broad range of industries. While the electronic commerce platforms that had segmented the business-to-business (B2B) market jumped at the opportunity to facilitate user firms’ performance, this coerced digitalization also provided sellers with a firm basis for becoming solely profit-seeking and engaging in unethical behavior. Seller firms’ core position is that a B2B e-commerce platform must supervise and manage seller firms to improve their performance. Drawing on symbiosis theory, this study proposes that platform-governance mechanisms (monitoring and community-building) enhance seller firms’ sense of belonging, thus improving relationship satisfaction and increasing seller firms’ performance. This study designs effective governance mechanisms for the B2B e-commerce platform according to its new roles. In addition to its economic role, the B2B e-commerce platform should assume “coordinator” and “supervisor” roles.

Suggested Citation

  • Li, Wenjie & Sun, Chaojing & Li, Yan & Ertz, Myriam, 2024. "Effects of business to business e-commerce platform-governance mechanisms on seller firms’ performance," Research in International Business and Finance, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:riibaf:v:67:y:2024:i:pb:s0275531923002477
    DOI: 10.1016/j.ribaf.2023.102121
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    More about this item

    Keywords

    Business to business platform; Community building; Governance mechanism; Monitoring; Symbiosis theory;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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