What works in B2B? Two Essays Examining the Success and Adoption of Business-to-Business Information Technologies

What factors explain the success and adoption of Business-to-Business Information Technologies? We explore this key question through two complementary research projects. Our key contention is that successful B2B technologies should match the contexts to which they are applied. We examine this contention at two distinct levels. At a macro level we examine the key structural features of technology enabled B2B marketplaces, and contend that structure of B2B marketplaces should conform to the industries in which they operate and the characteristics of the products they deal in. On the other hand, at a micro level or the individual user's level we contend that a firm's involvement in and use of B2B technologies should conform to existing inter-firm relationships, the transaction environment, and internal IT capabilities. In the first study we develop a structural framework for characterizing IT enabled B2B marketplaces. We propose ownership, market bias, and service orientation as three key structural elements of the B2B marketplace. Drawing from Industrial Organization literature, we propose that these structural elements will be influenced by the industry characteristics. Specifically, we examine the influences of industry concentration, industry maturity, and industry entry barriers, on the key B2B marketplace structural variables of ownership, bias, and service orientation. Further, we also examine the influence of product complexity on these variables. Based on secondary data collected from 63 vertical B2B marketplaces, we find many of our hypotheses supported. Specifically, B2B market ownership was found to be significantly related to industry concentration and product complexity, service orientation was significantly related to entry barriers and industry maturity, and finally, marketplace bias was related to industry entry barriers. In the second study we develop a model for users' involvement in and use of B2B technologies based on two key constructs. First, we propose the construct of B2B technology governance to reflect the degree of control and influence an organization has over the key management, strategic, operational, and technical decisions related to the technology. Second, we propose the construct of platform exploitation to reflect the degree to which the B2B technology is used to support both the scope as well as the depth of integration of the B2B activities of the firm. Drawing from the theoretical bases of political economy, resource dependence, and resource based capabilities, we argue that technology governance and exploitation will be influenced by existing inter-firm relationships, the transaction environment, and firms' internal IT capability. Primary data, gathered through a detailed questionnaire, is being used for this study. We are in the final phases of data analysis and model validation for this study. Initial responses look encouraging. More information: contact cschoof@rsm.nl