Motives for e-marketplace Participation: Differences and Similarities between Buyers and Suppliers

The motivation for e-marketplace participation for suppliers as well as buyers is closely linked to the perceived outcome of participation and not only in terms of the benefits of joining an emarketplace, but also in terms of possible consequences of not joining. Hence, the central issue is why organisations decide to buy and/or sell goods or services on e-marketplaces. We develop a theoretical framework for the categorisation of motivational factors, resulting in four different types of motives. We then apply the framework to a dataset consisting of 41 case studies covering 20 industries in 12 countries. We conclude that buyers and suppliers have different motives for engaging in e-marketplace activities. E-marketplaces are certainly a way of making supply chain activities more efficient, but not necessarily with the sole aim of exploiting suppliers. Buyers also use e-marketplaces to find new and alternative suppliers and even though many suppliers initially decide to participate in e-marketplaces because they are asked to do so by existing customers, they also use e-marketplaces to look for new customers. When expressing their motives for engaging in e-marketplace activities, buyers tend to be proactive and planning oriented, whereas suppliers are driven by external forces.