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Portfolios of Exchange Relationships: An Empirical Investigation of an Online Marketplace for IT Services

Author

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  • Radkevitch, U.L.
  • van Heck, H.W.G.M.
  • Koppius, O.R.

Abstract

Small firms face distinct problems and opportunities when procuring IT resources. Whereas previous work focused at the level of firm or buyer-supplier dyad, we address portfolios of buyer-supplier relationships at an online marketplace for IT services. Using the portfolio approach, we develop a buyers taxonomy and analyze properties of resulting clusters. Our investigation reveals four clusters of buyers with distinct mixes of long-term and short-term supplier relationships. Although reverse auctions are found to be associated with short-term relationships and negotiations support long-term relationships, buyers in different clusters use the two mechanisms in combination to a different extent.

Suggested Citation

  • Radkevitch, U.L. & van Heck, H.W.G.M. & Koppius, O.R., 2007. "Portfolios of Exchange Relationships: An Empirical Investigation of an Online Marketplace for IT Services," ERIM Report Series Research in Management ERS-2007-035-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:10072
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    References listed on IDEAS

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    More about this item

    Keywords

    Buyer-supplier relationships; IT services; Online markets; Outsourcing; Performance; Reverse auctions;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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