The Relationship between the Ownership and Performance of Electronic Marketplaces: an Exploratory Study

Research has focussed on the impact that factors such as IT, marketplace process design and competition have on electronic marketplace performance. However, such research has neglected the impact of ownership upon the performance of an electronic marketplace. This paper explores the issue of ownership in electronic marketplaces and derives a broad, multi-faceted perspective of ownership, incorporating investor objectives and ownership structure, investor commitment levels and governance efficiency. Using a multiple case approach, the paper assesses the performance of seven electronic marketplaces in order to determine the relationship between marketplace performance and ownership. The findings reveal that investor structures and objectives impact upon investor commitment levels and governance efficiency, with both of these factors in turn impacting upon electronic marketplace performance in terms of the volumes traded on the electronic marketplace, electronic marketplace adoption levels and electronic marketplace revenues and profitability.