The purchasing performance of organizations using e-marketplaces

Abstract

We apply transaction cost economic theory and perspectives in an empirical test regarding purchasing performance using electronic marketplaces. Basically, buyers can purchase products either by hopping across multiple electronic marketplaces or maintaining close relationships with a particular electronic marketplace. We investigate which is more beneficial for a buyer organization's purchasing performance in terms of price reduction and purchasing efficiency. We undertake this task by developing hypotheses and a research model and subjecting them to testing and analysis using the purchase of maintenance, repair and operations products in a large and important market, South Korea. © 2008 British Academy of Management.