Successful e-marketplaces: An institutional perspective

Since their inception, e-marketplaces have witnessed a major shakeout and have undergone tremendous change with regard to their business models and products/service offerings. Only a few marketplaces survive, tend to grow and consolidate in this turbulent environment. This development represents an interesting challenge to prevailing institutional theory, which views the performance of organizations as strongly influenced by the orientation and characteristics of a number of key institutional frameworks. Our research, based on a case survey methodology, attempts to identify the characteristics underlying successful e-marketplaces. Results indicate the success of a marketplace strongly influenced by number of key institutional frameworks and firm-level strategies. Ownership and bias, service focus, value impact, market opaqueness, rapidity of response, complementary assets and appropriability, and industry regulations emerge as key variables.