An Exploratory Study of the Emerging Role of Electronic Intermediaries
Joseph P. Bailey
Technology, Management and Policy
Massachusetts Institute of Technology
Yannis Bakos
Graduate School of Management
University of California, Irvine
March 1977
forthcoming in the International Journal of Electronic
Commerce
ABSTRACT
It is often argued that as electronic markets lower the cost of market
transactions, traditional roles for intermediaries will be eliminated,
leading to "disintermediation." We discuss the findings
of an exploratory study of intermediaries in electronic markets, which
suggest that markets do not necessarily become disintermediated as they
become facilitated by information technology. We explore thirteen
case studies of firms participating in electronic commerce and find evidence
of certain new emerging roles for electronic intermediaries, including:
aggregating matching suppliers and customers, providing trust, and providing
inter-organizational market information. Two specific examples are
discussed in greater detail to illustrate an unsuccessful strategy for
electronic intermediation (BargainFinder) as well as a successful one (Firefly).
KEYWORDS: electronic markets, intermediaries, Internet commerce,
electronic data interchange
Copyright © 1997 by Joseph P. Bailey and Yannis Bakos