Stuck in the Conflicted Middle: A Role-Theoretic Perspective on B2B E-Marketplaces

Over the years, research on the implications of information technology on network governance structures has explored the “move to the market” and the “move to the middle” hypotheses. The middle is a space in which the logic and modalities of markets and hierarchies are intermingled. There is increasing evidence that most network relations reflect mixed-mode or hybrid logic. Despite the apparent advantages that make the middle so populous or “swollen” (Hennart 1993, p. 472), Kambil et al. (1999) highlight that it is riddled with uncertainty and high transaction costs. They label it “the conflicted middle” and propose that online marketplaces, specifically all-in-one markets, are capable of resolving this conflict. Unfortunately, however, Kambil et al. provide limited insight into both the nature of the conflict that plagues the middle and the ability of all-in-one markets to resolve it.