IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00869881.html
   My bibliography  Save this paper

The Role of Quantitative and Qualitative Network Effects in B2B Platform Competition

Author

Listed:
  • Zhiwen Li

    (School of management Jiangsu University - JiangSu University)

  • Thierry Pénard

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

This article aims at investigating how quantitative and qualitative (indirect) network effects impact pricing and trading decisions on a Business-to-Business marketplace. Using an original data set collected on MFG.com, one of the most prominent B2B platforms in the U.S.A., we find that the market share of a marketplace depends on both the quantity and quality of suppliers, but that quality effects tend to substitute for quantity effects as the size of the marketplace increases. These results suggest that while the quantity of suppliers on board is crucial during the early stage of a marketplace, supplier quality matters much more in the mature stage.

Suggested Citation

  • Zhiwen Li & Thierry Pénard, 2013. "The Role of Quantitative and Qualitative Network Effects in B2B Platform Competition," Post-Print halshs-00869881, HAL.
    • Handle: RePEc:hal:journl:halshs-00869881
    DOI: 10.1002/mde.2602
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

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


    Cited by:

    1. 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).
    2. Gary Dushnitsky & Evila Piva & Cristina Rossi‐Lamastra, 2022. "Investigating the mix of strategic choices and performance of transaction platforms: Evidence from the crowdfunding setting," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 563-598, March.
    3. Özelkan, Ertunga C. & Lim, Churlzu & Adnan, Ziaul Haq, 2018. "Conditions of reverse bullwhip effect in pricing under joint decision of replenishment and pricing," International Journal of Production Economics, Elsevier, vol. 200(C), pages 207-223.
    4. Vincent Malardé & Thierry Pénard, 2022. "The role of local network effects and spatial effects in the growth of digital platforms: Evidence from the carpooling site iDVROOM [Le rôle des effets de réseau locaux et des effets spatiaux dans ," Post-Print hal-03712336, HAL.
    5. He, Wei & Li, Mingzhi & Zheng, Jie, 2023. "Switching cost, network externality and platform competition," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 428-443.
    6. Soichiro Takagi, 2020. "Literature survey on the economic impact of digital platforms," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 449-464, August.
    7. Zhongqi Deng & Yu Zhang & Ao Yu, 2020. "The New Economy in China: An Intercity Comparison," SAGE Open, , vol. 10(4), pages 21582440209, December.

    More about this item

    Keywords

    network; b2b platform;

    Statistics

    Access and download statistics

    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:hal:journl:halshs-00869881. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.