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An Exploratory Study on Buyer-Supplier Relationship in B2B with Internet  

Kim, Hyo-Gun (College of Business Administration, Ewha Womans University)
Cho, Hyung-Seung (Marketing Team, Corechange Korea)
Choi, In-Young (College of Business Administration, Ewha Womans University)
Publication Information
Information Systems Review / v.5, no.2, 2003 , pp. 169-182 More about this Journal
Abstract
The growth of electronic commerce make business to business electronic commerce market grow dramatically due to dramatic decrease of transaction cost and increase of productivity. It also influences the way of building transaction relationship between buyers and suppliers. This study tends to prove electronic market theory for Internet based 13213 commerce. We observe and analyze the implementation and usage patterns of procurement system of I company. The result shows that even through Internet enable many buyers and suppliers to participate and transact each other, the transaction pattern is different according to asset specificity and uncertainty as follows. First, with adoption of internet, the product with the higher asset specificity rather than lower asset specificity can be easily purchased. Second, Internet doesn't make any significant influence on the transaction of the product with higher uncertainty. But, organization's pre-audit process can indirectly influence on the decrease of the transaction uncertainty.
Keywords
B2B electronic commerce; transaction cost;
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