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The average education level is higher. Not surprisingly, many people order and pay for everything from books and groceries to computer equipment electronically. Consider e-marketplaces. Many of the more successful Asian B2B e-marketplaces deal in direct goods (that is, primary raw materials), whereas many US e-marketplaces deal niet online payment in indirect goods such as office supplies, lubricants, and travel services. Direct goods often pose greater challenges in product specification and cataloging than indirect materials, and e-marketplace operators necessarily develop capabilities in this domain.

The potential benefits e-marketplaces increased supply chain efficiency through reducing the number of intermediaries or through information the supply chain—are greater in Asia than in the West, where there are already fewer intermediaries and more efficient supply chains. Many Asian e-marketplaces target Asian MNCs and large buyers from the West and seek to link them with smaller Asian suppliers. Finally, the lack of supporting infrastructure in much of Asia means that e-marketplaces have to provide numerous complementary services in the areas of logistics, payments, assurance, and credit checks for a successful launch.

In a traditional channel of distribution, even if logistics activities are well managed, there is still a lack of coordination and integration between organizations which may lead to increased costs and a decreased level of service online payment of niet. The traditional channel is normally managed by a push inventory control system in which pre-set safety stock levels and re-order points determine what will be produced, and each channel member tends to keep relatively large safety stocks to guard against demand variability. Operating the channel under these conditions tends to result in what is called the "bullwhip" effect, where order variability is magnified throughout the channel such that a small increase in demand at the consumer level results in a disproportionately large increase in demand elsewhere.

The consequences of such an effect are increased inventory, increased transportation costs and inefficient allocation of resources. Leading-edge companies are using information to integrate the activities and processes of supply chain members in a way that creates a seamless flow of products synchronized with actual demand. In information-based supply chains, actual demand drives the activities of all supply chain members and "pulls" the product through the supply chain. The Internet is transforming and reshaping the nature of interorganizational commerce by enabling many new types of interfirm electronic exchanges.

A B2B exchange is defined as a new organizational form residing in digital space that acts as an interfirm intermediary that enables firms to conduct and engage in any-to-any online relations. This chapter proposes a classification scheme for B2B exchanges that attempts to capture the chaos and complexity of today’s online B2B relations. This typology integrates several theories of interfirm relations from the information online fee payment niet systems, marketing, and organizational economics literatures to propose a parsimonious but comprehensive taxonomy that encompasses neutral markets (many-to-many) and dyadic relations (few-to-few), and also the concept of biased relations, monopolies (few-to-many) and monopsonies (many-to-few).

This chapter discusses the implications of the proposed taxonomy for interorganizational eCommerce that ensue from the alternative types of B2B exchanges. Furthermore, the influence of product, organizational, and market characteristics on B2B eCommerce is discussed, and guidelines for appropriate selection of exchange type and particular B2B exchanges are proposed.

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