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Management, Vol. 8, 2003, 2, pp. 49-75 A. Pucihar, M. Podlogar: Organizational factors for successful entering to e-marketplace...

ORGANIZATIONA !A"TOR# !OR #$""%##!$%NT%RING TO %-MAR&%T'A"%( "A#% O! ARG%

ORGANIZATION# IN #OV%NIA

Andreja Pucihar * , Mateja Podlogar **

Received: 1. !. "# Preliminar$ communicationAccepted: 1%. 11. "# &'(: ).*#%.+ : +%.%

The appeal of doing business on the Web is clear. By bringing together large

numbers of buyers and sellers and by automating transactions, e-maretplaces

e!pand the choices a"ailable to buyers, gi"e sellers access to ne# customers

$buyers%, and reduce transaction costs for all participants. &ntering the e-

maretplace is related to the business process of reengineering, connecting of

information systems, gaining ne# no#ledge #ith training and learning, and

maing in"estments in ne# information technologies and soft#are. 'uch

organi(ation must tae "ery careful steps to prepare itself for a successful entrance

on the e-maretplace. )nly this ind of approach #ill enable the organi(ation the

full use of the a"ailable opportunities and #ill bring e!pected business results. The

paper presents the different types of e-maretplaces and the use of e-maretplaces for business. urthermore, the results of the research that #as done among +

large organi(ations in 'lo"enia are presented. The current status of the use e-

commerce and e-maretplaces in large organi(ations in 'lo"enia is introduced. n

addition, organi(ational factors found by large organi(ations to be important for a

successful entrance to the e-maretplaces are presented. We conclude the paper

#ith recommendations for the organi(ations that intend to enter e-maretplace.

). INTRO*$"TION

he use of the nternet and /lectronic (ommerce in the late 0!s caused

the disappearance of intermediaries et2een the u$er and seller. A seller could

sell his products and services directl$ to a u$er 2ithout an intermediar$ in3 Andre4a Pucihar, eaching Assistant and 5ead of eMarkets 6aorator$, e-commerce (enter,

7acult$ of Organizational 8ciences, &niversit$ of Marior, 9idrieva cesta ++a, ) 9ran4,

8lovenia, /-mail: Andre4a.Pucihar;7O


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Management, Vol. 8, 2003, 2, pp. 49-75A. Pucihar, M. Podlogar: Organizational factors for successful entering to e-marketplace...

et2een =8haffer and >ettleme$er 1!!!? @igand and en4amin 1!!+? (hoi andothers 1!!*B. @ith the advance in the development of /lectronic (ommerce

technologies, ne2 t$pes of intermediaries 2ere estalished. hese ne2

intermediaries 2ere offering ne2 value added services. Ce2 intermediaries

attract a lot of ne2 u$ers and sellers 2ith ne2 services that support the trading

process et2een them =(larke "1, +!? (hircu and 9auffman ", *?

'e8isto ", )? (hircu and 9auffman 1!!!? 1!? he /conomist 1!!!,

arling and 8tark 1!!%? >2as 1!!%B. his ne2 2a$ of doing usiness descries

the e-marketplace, 2hich represents one of the ne2 usiness models developed

in the late 0!s. he e-marketplace is the result of using innovative technolog$

in usiness processes.

'oing usiness on the e-marketplace enales sellers to enter ne2 markets,

to find ne2 u$ers, and to increase sales. On the other side, the e-marketplace

gives a u$er access to a roader range of products and services offered $

sellers. A u$er has the option to Duickl$ compare various offers $ price and

performance measures. he e-marketplace services support the eEchange of

large amounts of data aout the suppl$ and demand et2een the u$er and

seller, and the implementation of usiness transactions ='e8isto ", ), 6enz

", "B.

here are man$ different usiness models of e-marketplaces. n practice,

2e can find a lot of evidence that the e-marketplace is supporting man$

different processes et2een a u$er and a seller. 8ome e-marketplaces supportonl$ the aggregation of suppl$ and demand, and the searching and matching of

u$ers or sellers. n addition, man$ e-marketplaces support different t$pes of

auctions and negotiations. On the other hand, not man$ e-marketplaces support

the entire trading process 2here usiness services such as contracting, finances,

logistics, insurance, legal, pa$ments and other services are needed =Pucihar

"#, 1)B.

2. *%!INITION O! %-MAR&%T'A"%

he e-marketplace is a virtual marketplace 2here u$ers and suppliers

meet to eEchange information aout product and service offers, and to negotiate

and carr$ out usiness transactions =Archer and Feauer "B. 7urthermore, inthe age of the nternet and 2ith the emergence of ne2 information and

communication technologies, the e-marketplace is a @e-ased information

s$stem, 2here multiple suppliers and multiple u$ers can undertake usiness

transactions via the nternet =Russ "1, "B. he e-marketplace uses nternet

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technologies and standards to distriute product data and to facilitate onlinetransactions =8egev and others 1!!!, 1#%B.

An intermediar$ can provide four important mechanisms that cause

marketplaces to add value =(hristiaanse and others "1, )")? aile$ and akos

1!!*B:

Matching buyers and sellers to negotiate prices on a dynamic and real-time

basis,

&nsuring trust among participants by maintaining a neutral position,

acilitating maret operations by supporting certain transaction phases,

and

Aggregating together a large number of buyers and sellers.

ntermediar$ functions ma$ support a multiplicit$ of activities, including

rokerage G auctions pa$ments, logistics, legal, consulting, or ma$ support

inter-compan$ communications through third part$ inter-organizational s$stems

and related s$stems =akos 1!!1, "!, (houdhur$ and others 1!!%, )*", 8egev

and others 1!!!, 1#%, Archer and Feauer ", 9aplan and 8a2hne$ "?

Fre2al and others "1, Russ "1, "B.

he success of the e-marketplace depends on the perceived net enefit of

u$ers and suppliers. 7rom the vie2point of transaction cost economics,

information technolog$ helps to reduce transaction costs, risks, and

coordinating costs of e-marketplaces =(lemons and others 1!!#B.

n order to understand strategic implications of the e-marketplace, 2e must

focus on the follo2ing characteristics =akos 1!!1, "!*B:

An e-marketplace s$stem can reduce customers0 costs for otaining

information aout the prices and product offers of alternative suppliers as

2ell as suppliers0 costs for communicating information aout their prices

and product characteristics to additional customers.

he enefits $ individual participants in an e-marketplace increase as more

organizations 4oin the s$stem.

he e-marketplace can impose significant s2itching costs on its

participants.

he e-marketplace t$picall$ reDuires large capital investments and offerssustantial economies of scale and scope.

Potential participants on the e-marketplace face sustantial uncertaint$ 2ith

regard to the actual enefits of 4oining such a s$stem. Occasionall$, this

uncertaint$ remains even after an organization 4oins the s$stem.

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here are man$ different t$pes of e-marketplaces operating toda$. @e ma$divide e-marketplaces into those controlled $ sellers, those controlled $

u$ers and those controlled $ neutral third parties =err$man and others,

1!!%B:

The e-maretplaces controlled by sellers are usually set up by a single

"endor seeing many buyers. ts aim is to create or retain "alue and maret

po#er in any transaction.

The e-maretplaces controlled by buyers are set up by or for one or more

buyers #ith the aim of shifting po#er and "alue on the maretplace to the

buyer/s side. Many in"ol"e an intermediary, but some particularly strong

buyers ha"e de"eloped maretplaces for themsel"es.

0eutral e-maretplaces are set up by third-party intermediaries to match

many buyers to many sellers.

@e ma$ divide e-marketplaces into horizontal and vertical marketplaces. A

horizontal marketplace addresses a specific function =e.g. human resources,

office suppliesB and serves a 2ide range of industries, 2hile a vertical

marketplace focuses on a 2ide range of functions in a specific industr$, such as

chemicals, steel or automotive =aldi and orgman "1, #, Ramsdell "B.

@e ma$ also classif$ marketplaces into four categories =9aplan and

8a2hne$, "B:

M1) $Maintenance 1a# and )perations% hubs are hori(ontal marets that

enable systematic sourcing of operating inputs, 2ield managers are hori(ontal marets that enable spot sourcing of

operating inputs,

&!changes are "ertical marets that enable spot sourcing of manufacturing

inputs,

3atalog hubs are "ertical marets that enable systematic sourcing of

manufacturing inputs.

As previousl$ mentioned, an intermediar$ provides different services to

u$ers and suppliers on the e-marketplace. he most commonl$ used services

on toda$0s marketplaces are related to maintaining a product e-catalogue,

negotiating support and performing on-line auctions =6efevre and others

"1B. he aim of intermediaries, i. e. e-marketplace service providers, is to provide a 2ide range of services to all the participants on the e-marketplace.

Among others, these services include product development, logistics and

insurance services, pa$ments and similar. here are not man$ marketplaces

operating toda$ that offer such a 2ide range of services. Most of them are

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oriented in providing services of matching u$ers and sellers, negotiation andauction services ='ai and 9auffman "1B.

3. 'RO+%M *%!INITION

he appeal of doing usiness on the @e is clear. $ ringing together

large numers of u$ers and sellers and $ automating transactions, e-

marketplaces eEpand the choices availale to u$ers, give sellers access to ne2

customers =u$ersB, and reduce transaction costs for all participants. $

eEtracting fees for the transactions occurring 2ithin the usiness-to-usiness

="B marketplaces, market makers =intermediariesB can earn vast revenues.

5ence, since the marketplaces are made from soft2are G not ricks and mortar

G the$ can gain scale 2ith minimal additional investment, promising even more

attractive margins as the markets gro2 =5aag and others "", "1"? 9aplan and

8a2hne$, !%, "B. An organization 2ill enter an e-marketplace onl$ if it 2ill

see enough enefits that might e gained 2ith value added services on the e-

marketplace. hat is 2h$ it is important that intermediaries kno2 the u$ers0

and suppliers0 needs ver$ 2ell. his 2ill enale them to provide value-added

services and provide the necessar$ critical mass of organizations to the

marketplaces =Pucihar ""B.

/ntering the e-marketplace is related to the usiness process of

reengineering, connecting of information s$stems, gaining ne2 kno2ledge 2ith

training and learning, and making investments in ne2 technologies and soft2are=akos 1!!1, "!*? Archer and Feauer "B. One of the main reDuirements for

successfull$ doing usiness on the e-marketplace is the use of e-commerce in

dail$ usiness. An organization ma$ enter the e-marketplace as a u$er or a

seller =supplierB. An organization must take ver$ careful steps to prepare itself

for a successful entrance on the e-marketplace. Onl$ this kind of approach 2ill

enale the organization to a full use of the availale opportunities and 2ill ring

eEpected usiness results =Archer and Feauer "B. 7or that reason, it is

important to research the factors that organizations need to consider to

successfull$ enter the e-marketplace.

ased on literature revie2, 2e can find man$ advantages and opportunities

coming from the field of e-commerce and e-marketplaces =Podlogar "#, 1"*?Pucihar "#, 1)B. n a real usiness 2orld, 2e can find man$ cases of

successful as 2ell as man$ cases of unsuccessful use of the e-marketplace, on

oth the u$ers0 and sellers0 side. &nsuccessful use of the e-marketplace might

e caused $ improper services of e-marketplace providers. f services of e-

marketplace providers do not add an$ value to the u$er or seller, then in the

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long term, the$ 2ill not choose the e-marketplace as a 2a$ of doing usiness.hus, the e-marketplace 2ill e forced to close its usiness since it 2ill not

attract a sufficient critical mass of companies. @ithout a sufficient numer of

sellers, u$ers cannot choose among different sellers. he same rule also

applies to u$ers - if there are not enough u$ers on the e-marketplace, then

sellers do not have sufficient interest to 4oin the e-marketplace since the$ 2ill

not have parties to 2hom the$ could sell their products or services.

he direction in 2hich the e-marketplace 2ill evolve is still Duite uncertain

ecause of the Duickl$ changing environment and fast development of e-

commerce technologies. n the long term, onl$ the e-marketplace that 2ill offer

the most value-added services 2ill survive in the turulent gloal economic

environment. As e-commerce connects markets to one gloal market,

organizations 2ill have to e ale to compete on the gloal market. he$ 2ill

tr$ to gain the competitive advantage in different 2a$s, 2hich includes doing

usiness on the e-marketplace. 7or that reason, it is important to investigate

ho2 organizations need to e organized to successfull$ enter the e-marketplace.

$ kno2ing these factors, organizations 2ill e ale to etter prepare to enter e-

marketplaces successfull$ and to e ale to compete in the gloal marketplace

=Pucihar ""B. 'oing usiness on the e-marketplace in 8lovenia is not $et ver$

2idespread? ho2ever, there are some indices from various organizations

sho2ing their interest in entering the e-marketplace. 8ince 8lovenia is in the

process of 4oining the /uropean &nion, this research is especiall$ important for

organizations in 8lovenia, 2ho 2ill soon have the opportunit$ to operate andcompete on the common /uropean and gloal market =Pucihar ""B.

4. 'RIOR R%#%AR"


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Table 4. )rgani(ational factors found in prior research

!ato A/to !at1

Organization of the 8

departments and the

level of use of

information technolog$

Auer and Reponen

1!!*

harad2a4 "

Fre2al and others

"1

he use of information technolog$ and

proper organization of information s$stems

department in an organization are important

for the achievement of competitive

advantage in the e-marketplace and the$

enhance the possiilit$ for more successful usiness on the e-marketplace.

A2areness of enefits

of eMarkeplace use

Porter and Millar,

1!%+

Malone and others

1!%*akos 1!!1

8teinfield and

(a$ 1!!#

8teinfield and

others 1!!#8treeter and others

1!!

Main enefits of e-marketplace use are

lo2er transaction costs for all participants.

his leads to a more effective usiness.

'oing usiness on the e-marketplaceenales a compan$ to simplif$ usiness

processes, and to facilitate a faster search of

ne2 u$ers and suppliers, and faster

entrance to ne2 markets.

he level of top

management support in

the process of anorganization0s entering

the e-marketplace

uran "", !

Ramsdell ",

1%1

op management support is most important

for the successful implementation of

electronic commerce pro4ects. t isimportant that top management gives

initiative for entering the e-marketplace and

assigns a responsile person for 2ork on

this pro4ect. t is also important that the topmanagement tracks and encourages the

2ork on the pro4ect.

7ormulated electronic

commerce strateg$ in

an organization

uran "", * 7ormulated electronic commerce strateg$ in

an organization is ver$ important, as

electronic commerce is a strategic issue of

toda$Hs usiness in the competitive market./lectronic commerce is, for most

organizations, of critical importance. t

enales them to compete in gloal

competitive markets and, furthermore,

enales their survival.

raining for the use of

e-marketplace interface

and programs

Fre2al and others

"1

@hile entering the e-marketplace,

organizations also face ne2 programs and

interfaces that enale doing usiness on thee-marketplace. 7or successful use of

programs and interfaces of the e-

marketplace, it is important to providetraining and education for users.

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!ato A/to !at1A2areness of

and possiilit$

to make eEtra

investments

needed for

entering the e-marketplace

akos 1!!1

Archer and Feauer "

@hile entering the e-marketplace,

organizations ma$ face eEtra costs, such as

ne2 technolog$ and programs needed to

connect to the e-marketplace, necessar$

training and education providing for users,

and necessar$ usiness process re-engineering. Organizations should e a2are

of possile eEtra costs and have to have the

possiilit$ to make the necessar$ eEtra

investments.

Ailit$ to set-upand maintain the

electronic

catalogue of products and

services

(houdhur$ and others1!!%

/nter2orks "

Mello "1

f an organization does not have anelectronic catalogue of its products and

services, it ma$ e a limitation for entering

the e-marketplace. 'esign and maintenanceof an electronic catalogue of products and

services reDuire investments, time and

kno2ledge. he issue is much morecompleE if the seller has a 2ide range of

products or services 2ith different

characteristics, 2hich need to e descried

in a catalogue.

Ailit$ to ensure

and provide the

standardized

form of data

'ai and 9auffman "1

/sichaikul and

(havananon "1

uescher and


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A2areness of enefits of e-marketplace use, 6evel of top management support for an organization0s entering the e-

marketplace,

Ailit$ to set-up and maintain an electronic catalogue of products

andIor services,

(osts of preparing and entering the e-marketplace,

Ailit$ to ensure and provide the standardized form of data,

Readiness of an organization for an inter-organizational relationship.

5. R%#%AR" M%TO*OOG

he research 2as performed in "+ large organizations 2ith the highestrevenues and a @e page in 8lovenia in Ma$, "". o e Dualified as a large

organization, an organization has to fulfill at least t2o of the follo2ing

conditions ased on the +1st article of the Organizations0 Act:

More than "+ emplo$ees,

Annual revenue of more than ) illion 8lovene tolars =8B, and

Average asset value of more than " illion 8lovene tolars =8B.

he main reason for making such a choice lies in the assumption that

entering the e-marketplace is associated 2ith eEtra eEpenses and eEtra

investments in ne2 kno2ledge, usiness processes reengineering and ne2

technologies, and it is eEpected that large organizations have more resources

availale for such a purpose. he research 2as ased on a Duestionnaire. heDuestionnaire 2as designed on the asis of theoretical kno2ledge, prior research

and case studies. Opinions of eEperienced eEperts and information technolog$

and nternet service providers in this field 2ere also considered. he

Duestionnaire 2as divided into the follo2ing sections:

Respondents and organizations data,

/Eperiences 2ith the use of e-marketplaces, and

7actors for the successful entering of the e-marketplace.

n order to ensure that the responses reflect the situation in each

organization, the letters 2ith the Duestionnaires 2ere addressed to the chief

eEecutive officers. he$ 2ere asked to distriute the Duestionnaires to the chief

procurement officer, chief sales officer and chief information officer. A total of

11! useful responses 2ere otained and anal$zed.

. R%#%AR" R%#$T#

+*


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Most of the respondents are personnel =)"JB, ").)J of the respondents2ork in the field of procurement and 1*.*J of them 2ork in sales. Most of the

respondents are ver$ eEperienced. Almost half of them have more than 1 $ears

of eEperience in their field of 2ork =)."JB. Almost a third of the respondents

have + to 1 $ears of eEperience in their field of 2ork =#1.!JB. Most of the

organizations sell their products and services in 8lovenia =)+.)JB and other

/uropean countries =##.JB. he same situation is aout procurement. Most of

the organizations u$ products and services in 8lovenia =)+.JB and other

/uropean countries =#*.)JB.

.). %leton ommee epeene1 n lage ogan6aton1 n#loena

/lectronic commerce eEperiences 2ere measured $ defined electronic

commerce strateg$, defined position of the electronic commerce

directorImanager and $ use of the enterprise resource planning =/RPB s$stem

in an organization, use of electronic commerce standards for documents

eEchange, and the availailit$ of an electronic catalogue of products andIor

services. Almost a Duarter of the respondents stated that the$ have formulated

an electronic commerce strateg$ =").)JB in their organization. Another Duarter

of the respondents stated that the$ intend to define electronic commerce strateg$

until the end of "# =").)JB. More than a Duarter of the respondents stated that

the$ do not have a formulated electronic commerce strateg$ or the$ do not have

an opinion aout it ="*.*JB. Another ".+J of the respondents did not ans2er the Duestion =7igure 1B.

e-commerce

strateg$ 2ill e

formulated in neEt

$ears? "1.J

e-commerce

strateg$ 2ill e

formulated until the

end of "#? ").)J Co opinion? +.!J

@e do not have

formulatede-commerce

strateg$? "1.%J

@e have formulated

e-commerce

strateg$? ").)J

Co ans2er? ".+J

igure 4. ormulated e-commerce strategy in organi(ations

+%


11/28


Almost a third of the respondents confirmed that the$ have defined the

position of an electronic commerce director or manager in their organization

=#1.1JB. A total of 1.1J of the respondents confirmed that in their

organization, the$ plan to define the position of an electronic commerce director

or manager in the neEt $ears.

Another +J of the respondents confirmed that in their organization, the$

2ould define the electronic commerce director or manager $ the end of the

$ear "#.

More than half of the respondents eEpressed that in their organization, the$

do not have a defined position of an electronic commerce director or manager

=+.)JB. Aout #.)J of the respondents did not ans2er the Duestion =7igure "B.

@e have defined positionof e-commerce manager

in organization? #1.1J

@e plan to define

osition of e-commerce

anager in the future?

1.1J

@e plan to define


anager until the end of

"#? +.J 5ave no opinion? #.)J

@e do not have defined


anager in organization?

+.)J

igure +. 7efined position of e-commerce manager in organi(ations

Most of the respondents confirmed that in their organization, the$ use an /RP

s$stem =*!.JB. Another 1.!J intend to use an /RP s$stem in the neEt $ears

=.*JB and $ the end of "# =)."JB. Onl$ .*J of the respondents stated that

in their organization, the$ do not have an /RP s$stem. Another #.)J of therespondents did not respond to this Duestion =1.*JB nor have an opinion =1.*JB

=7igure #B.

+!


12/28


5ave no opinion?

1.*J

@e plan to use /RP

s$stem in neEt $ears?

,.*J @e plan to use /RP

s$stem until the end

of "#? )."J

@e do not use /RP

s$stem in

organization? ,.*J

Co ans2er? 1.*J

@e use /RP s$stem

in organization? *!.J

igure 8. 7efined position of e-commerce manager in organi(ations

he ma4orit$ of respondents 2ho have alread$ applied an /RP s$stem

stated that their /RP s$stem 2as developed in their organizations on their o2n

=+"JB. 7rom the /RP s$stems of providers on the market, 8AP RI# is the

solution most used in organizations in 8lovenia ="1.#B, follo2ed $ 9opa

=8lovene providerB =!.JB, M8 Cavison =!.JB and aan =*.+JB =7igure )B.

8AP RI#? "1.#J

O2n solution?+".J

9opa? !.J

M8 Cavision? !.J

aan? *.+J

igure 9. Type of &1P system used in organi(ations

he use of electronic commerce standards is important ecause it enales

the eEchange of data among usiness partners despite the different information

s$stems that are used in organizations. he eEchange of usiness documents

2ith usiness partners in standardized form is most freDuentl$ used for


13/28


Kpurchase ordersL =1!.#JB and Kpa$ments ordersL =1*.JB. Onl$ 1J of organizations, or even less, eEchange other documents in standardized form.

Other documents, like the KreDuest for Duotation andIor offerL, KofferL, and

Kproduct andIor service catalogueL, are eEchanged $ most organizations

=%.!JB in non- standardized form =7igure +B.

#,)J

#,)J

#,)J

#,)J

+,J

+,!J

1,1J 1*,*J

1!,#J

%,!J

**,#J

**,#J

",!J

#,#J

+*,1J

),#J

+!,*J

79,0

24,4

),8

),8

3,9

0,5

29,4

37,8

)7,7

11,%

#,)J

",+J

",+J

),"J

#,)J

#,)J

),"J

#,)J

+,!J

J 1J "J #J )J +J J *J %J !J 1J

Other

e(atalogue of

productsIservices

ReDuest for

uotation

Offer

8hipment list

nvoice

Order

confirmation

Pa$ment order

Order

8tandardized Cot standardized 'o not use Co ans2er

igure . 5se of e-commerce standards in document e!change

Availailit$ of an electronic catalogue of products and services is an

important factor for entering the gloal market. Most of the respondents

confirmed that u$ers can gain an electronic catalogue of products andIor

services on an organization0s 2e site =.)JB.

Almost half of the respondents confirmed that an electronic catalogue

could e also acDuired $ e-mail =)!.JB and $ (' media =)#.+JB. A Duarter of the respondents stated that an electronic catalogue is availale on disks. Onl$

1#.!J of the respondents stated that the$ do not have an availale electronic

catalogue of their products andIor services in their organization.

1


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A ma4orit$ of the respondents stated that e-catalogues of products and servicesare availale on their 2e sites =*+."JB? and in different languages =+.%JB.

6ess than half of the respondents stated that u$ers can search their e-

catalogues =)+.#JB and that customer support is availale on their 2e sites

=)."JB.

igure :. A"ailability of electronic catalogue

One-third of the respondents stated that financial data of the organizations

are availale on the 2e site =##.#JB. 6ess than a third of the respondents statedthat prices of products and services ="+.JB and ordering of products and

services are availale on their 2e sites =1*.!JB. Onl$ a fe2 respondents stated

that on their 2e sites the pa$ment process is supported =+.1JB and the

customization of products and services =".JB =7igure *B.

.2. $1e o te e-ma:etplae n lage ogan6aton1 n #loena

(urrentl$, there are no usiness-to-usiness e-marketplaces operating in

8lovenia. 5o2ever, 2e can oserve some interest eEpressed $ organizations,

such as elekom 8loveni4e, various 8 providers and some government

institutions =Fovernment (enter of nformaticsB, to estalish the e-marketplace.

n addition, some companies are looking for opportunities to estalish private e-

marketplaces to involve all their partners from the suppl$ chain. n 8lovenia,

there are several providers 2ho 2ould like to sell their soft2are designed to

operate e-marketplaces. On the other side, 2e have some organizations that

have alread$ 4oined the e-marketplaces outside 8lovenia. 8ome of them 2ere

alread$ a2arded and 2on some usiness contracts =Pucihar ""B.

0.9

49.

43.5

24,3

)3,9

J

1J

"J

#J

)J

+J

J

*J

%J

!J

1J

u$ers can get

e-catalogueon 2e

@e can eEchange

e-catalogue $ e-mail

@e can eEchange

e-catalogue $ ('

@e can eEchange

e-catalogue $ flopp$

u$ers canHt get

ecatalogue

"


15/28


igure ;. Web site functions

he research results have sho2n that onl$ a fe2 organizations have an$

kno2ledge and eEperiences of e-marketplaces =7igure %B.

Co eEpericences?

*+.J

u$ing? ".+J

8ervice providing?

#.)J

u$ing and selling?

1.*J

8elling? #.)J

Co ans2er? 1#.)J

igure


16/28


organizations alread$ have the eEperiences of doing usiness on the e-marketplace. he research results sho2 that ".+J of the organizations alread$

have eEperiences of u$ing, #.)J of selling, #.)J of service providing and

1.*J of u$ing and selling on the e-marketplace. hree Duarters =*+.JB of the

organizations have no eEperiences and 1#.)J of the organizations did not

ans2er the Duestion =Pucihar ""B.

he research results are in line 2ith our eEpectations. he e-marketplaces

are ne2 2a$s of electronic commerce that have een developing ver$ fast

during the last fe2 $ears. 7or that reason, it is ver$ stimulating that there are

some organizations in 8lovenia 2ho have alread$ een doing usiness on the e-

marketplace. @e ma$ find even more stimulating the results 2hen 2e eEamine

organizations0 intention to enter e-marketplaces in the future =7igure !B.

'onHt think aoutentering

eMarketplace?

11.%J ntend to enter

eMarketplace $ the

end of "#? 11.%J

'onHt kno2? "1.%J

ntend to enter

eMarketplace in the

future? ".!J

ntend to e a

service provider?

.%J

ntend to enter as

a u$er? ".+J

ntend to enter as a

seller? .*J

ntend to enter as a

u$er and a seller?

*.J

Co ans2er? 1.1J

igure =. ntention of organi(ations about entering e-maretplaces in the future

More than half of the organizations =+.#JB are thinking aout entering e-

marketplaces in the near future. More than one-tenth =11.%JB of the

organizations intends to enter the e-marketplace $ "# and more than a

Duarter =".!JB of them in the future. 8ome organizations alread$ kno2 ho2

the$ 2ill enter the e-marketplace: .*J of them 2ill enter as sellers, ".+J as

u$ers and *.J as u$ers and sellers. 6ess than one percent of the

organizations =.%JB intends to enter the e-marketplace as service providers.

Onl$ 11.%J of the organizations do not think aout entering the e-marketplace

)


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in the future. Almost a Duarter ="1.%JB of the organizations has no opinionaout entering the e-marketplace in the future, 2hile one-tenth =1.1JB of the

organizations did not ans2er the Duestion =Pucihar ""B.

.3. Ogan6atonal ato1 n lage ogan6aton1 n #loena

Relevant organization of the 8 department and a high level of use are

important factors for successful entering on e-marketplaces. Onl$ #".*J of the

respondents confirmed that the support group in their organization is large

enough to offer effective support to the users. Almost half of the respondents

=)+.) JB elieve that that their organization has adeDuate kno2ledge aout .

Man$ more respondents =!.%JB confirmed that the$ follo2 the development of

and possiilities for the use in their organization =Pucihar ""B.

Cot man$ of the respondents have the a2areness of the enefits of e-

marketplace use. t ma$ e one of the reasons for the lo2 level of e-marketplace

use in large organizations in 8lovenia, and vice versa. 6ess than half of the

respondents =)).+ JB disagree that in their organization the$ are a2arded for

successfull$ doing usiness on e-marketplaces. n addition, man$ respondents

=#).# JB disagree that the$ are a2are of possile troules 2hen doing usiness

on the e-marketplace. A good third of the respondents =#*.% JB disagree that

emplo$ees in their organization kno2 the enefits of doing usiness on the e-

marketplace. Almost half of the respondents =)!. JB also disagree that an

organization0s emplo$ees kno2 2hat e-marketplaces are the most suitale for their organization to enter =Pucihar ""B.

op management must support the use of ne2 usiness models enaled $

modern . Co2ada$s, it ma$ e the onl$ 2a$ for their organization to gain

important competitive advantage in the gloal marketplace. More than half of

the respondents agree that the top management in their organization supports

ne2 2a$s of usiness =*JB and investments in electronic usiness =+).JB

=Pucihar ""B =ale "B.

Man$ of the respondents could not define or ans2er if the costs of

preparing for and entering the e-marketplace are lo2 or high. his ma$ eEplain

the stated costs eing neither high nor lo2 for e-marketplace services =#).+JB,cost of e-marketplace fees =#".%B, costs of setting up and maintaining an

electronic catalogue of products andIor services =).#JB and costs =#1.!JB.

he highest numer of the respondents think that training and educational costs

are high =)).+JB =ale #B. heir ans2ers could e attriuted to the lack of

eEperience using e-marketplaces =Pucihar ""B.

+


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he ma4orit$ of respondents agrees that the$ are ale to provide the

standardized form of data. Almost half of the respondents =)."JB agree that the

characteristics of their products and services are eas$ to descrie. More than

half of the respondents =#JB agree that in their organization the$ are ale to

offer standardized data aout products and services =Pucihar ""B =ale )B.

.4. Impotane o Ogan6atonal !ato1 o 1/e11/ll; entengte e-ma:etplae

A ma4orit$ of the respondents stated each of the follo2ing organizational

factors as important for successfull$ entering the e-marketplace =Pucihar ""B:

Top management support to ne# T and #ays of business $%?

ormulated e-commerce strategy $%?

Trained employees #ith information technology and no#ledge $%

Modern T infrastructure $%?

1eadiness of business processes to connect #ith business partners $%?

T department support in the organi(ation $;;.=>%?

5se of an enterprise resource planning system that enables them to connect

#ith business partners $;:.8>%?

7efined position of an electronic commerce e!ecuti"e in the organi(ation

$;;.4>%?

A"ailability of an electronic catalogue of products and ser"ices $:;>%?

&!periences #ith electronic commerce $:;>%.

he importance of organizational factors for a successful entr$ on the e-

marketplace is sho2n in ale +.


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Table +. nternal organi(ational factors

Ogan6atonal ato1

Te leel o ageeng n Aeage

al/e#tongl;


20/28


Table 8. 3osts of preparing and entering the e-maretplace

Ogan6atonal ato1

Te leel o o1t1> n Ve;o= 2 3 4

Ve;g

Noan1=e

Aeageal/e

) 5 0

osts of preparing for and entering e-marketplace

(osts of e-marketplace services .% 1*. #).+ "1. .% "+." #.1

(osts of e-marketplace fees 1.* 1+.1 #".% ").) ".+ "#.+ #.

raining and educational costs .* ##. #+.# !." 1+.1 #.

(osts of set-up and maintaining an

electronic catalogue of productsandIor services

%.) ).# #1.1 +.! 1).# #.)

nformation technolog$ costs ".+ 1).# #1.! #1.1 +. 1+.1 #.#

Table 9. Ability to ensure and pro"ide the standardi(ed form of data

Ogan6atonal ato1

Te leel o ageeng n #tongl;


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Table . mportance of organi(ational factors

Ogan6atonal ato1

Te leel o mpotane o ato1 n Not

mpotantat all

2 3 4Ve;

mpotantNo

an1=eAeage

al/e

) 5 0op management support to

ne2 and 2a$s of usiness %.+ #.+ +.% )." ).+

7ormulated e-commerce

strateg$ .% 1#. ##.1 )!." #.) ).)

rained emplo$ees 2ith

kno2ledge 1.* !.# ).* )).1 )." ).#

Modern infrastructure 1.* 1". )1. )." +.1 ).#

Readiness of usiness

processes to connect 2ith

usiness partners

.% .% 11.! #+. )).! +.! ).#

department support in theorganization

.% ".+ 1).) #%.1 #!.% )." )."

&se of enterprise resource

planning s$stem that enales

connecting 2ith usiness

partners

1.* ".+ 1).) ##.1 )#." +.1 )."

'efined position of

electronic commerce

eEecutive in organization

*. 11. #!.% #*.# )." ).1

Availailit$ of electronic

catalogue of products and

services

+.1 1.! ##.! ##.1 11. ).1

/Eperiences 2ith electronic

commerce #.) ".# ).* ".# #.) #.!

7. R%"OMM%N*ATION#

f an organization 2ants to enter an e-marketplace successfull$, it is

important that it has clearl$ defined the strateg$ of entering the e-marketplace.

t needs to kno2 2hat the goals of doing usiness on the e-marketplace are. t is

important that an organization has a clear vision of 2hether it 2ill enter the e-

marketplace as a u$er or a seller. 8ince there are man$ e-marketplaces present

in the gloal market, it is important that the organization kno2s the e-marketplaces that are relevant to its usiness and its goals. he organization

needs to investigate 2hat is the process of entering the e-marketplace, 2hat

t$pes of services are availale, 2hat is the price to suscrie and use a service,

etc.

!


22/28


t is also important that the top management supports the pro4ect of entering the e-marketplace and that the$ have a clear vision and strateg$ ho2

the$ 2ill eEploit the enefits of this ne2 2a$ of doing usiness. A defined

position of an electronic commerce eEecutive in an organization might elevate

the importance of electronic commerce and electronic usiness for the

organization. t is also important that emplo$ees are educated and trained for

such a 2a$ of doing usiness. &suall$ the e-marketplace providers offer all the

necessar$ training on ho2 to use different e-marketplace soft2are.

t is important that an organization is a2are of the costs that 2ill appear $

entering the e-marketplace. n addition to the direct costs, such as e-marketplace

annual fees and service fees, organizations 2ill also e faced 2ith various

indirect costs, such as training costs, investments in ne2 technolog$ or ma$e

even investments in setting up and maintaining an e-catalogue of products and

services. Onl$ if the organization has a strong vision aout entering the e-

marketplace and if it is a2are of the additional costs that ma$ appear, it 2ill e

ale to assure the necessar$ resources. /ver$ organization has to calculate the

eEpected enefits and costs ecause, in an$ case, the eEpected enefits have to

e higher than the eEpected costs in order to make a choice aout entering the e-

marketplace.

he availailit$ of an electronic commerce catalogue of products and

services is important. Organizations that intend to enter the e-marketplace must

e ale to offer standardized electronic data aout their products and services.he use of electronic commerce standards enales the connection of different

information s$stems. his is especiall$ important in the case of entering the e-

marketplace ecause man$ organizations that are using different information

s$stems need to communicate 2ith each other.

Almost all e-marketplaces operate on the @e-ased information s$stems,

thus it is important that the modern infrastructure, 2hich enales nternet

commerce, is in place in the organization. Man$ e-marketplaces operate on the

asis of information s$stems integration, this eing especiall$ valid for

consortia ased e-marketplaces. As man$ organizations have implemented

enterprise resource planning s$stems, it is important that the$ are ale to

connect their s$stems 2ith other information s$stems of usiness partners. heuse of electronic commerce standards and different interfaces for usiness-to-

usiness s$stems integration make integration processes much easier.

t is important that organizations have their usiness processes read$ to e

connected 2ith usiness partners. he$ must change and modif$ usiness

*


23/28


processes to the ne2 2a$ of doing usiness. he necessar$ changes of usiness processes are dependent on the t$pe of e-marketplace that the organization is

2illing to enter. 7or eEample, an organization 2ill have to make more changes

if it decides to enter a private or consortia-ased e-marketplace rather than third

part$ e-marketplaces. o enter a private or consortia-ased e-marketplace, an

organization has to consider changing its usiness processes ecause the neEt

step 2ill usuall$ e the integration of information s$stems. o enter an

independent third part$ e-marketplace, it is usuall$ enough to use the @e

ro2ser to make an order or to participate in an on-line auction.

he e-marketplaces are ne2 usiness models that are developing and

changing ver$ rapidl$. herefore, it is important that the usiness environment

encourages organizations to use such models to gain a competitive advantage in

the gloal market. Fovernments need to pla$ a ke$ role in such activities.

R%!%R%N"%#

1. Auer, .? Reponen, . =1!!*B: Knformation 8$stem 8trateg$ 7ormation

/medded into a (ontinuous Organizational 6earning ProcessL.

nformation 1esource Management @ournal, 1 =8pringB, pp. #"G)#.

". Archer, C.? Feauer, . ="B: Managing in the (onteEt of the Ce2

/lectronic Marketplace. Proceedings 4st World 3ongress on the

Management of &lectronic 3ommerce, 5amilton, Ontario, (anada, anuar$

pp. 1! G "1.#. aile$, .? akos, . N. =1!!*B: An /Eplorator$ 8tud$ of the /merging Role

of /lectronic ntermediaries. nternational @ournal of &lectronic

3ommerce,


24/28


%. harad2a4, A. 8. ="B: A Resource-ased Perspective on nformationechnolog$ (apailit$ and 7irm Performance: An /mpirical nvestigation.

M' uarterly,


25/28


49th Bled &lectronic 3ommerce 3onference, e-&"erything6 e-3ommerce, e-o"ernment, e-Cousehold, e-7emocracy. "+.-". une, led,

8lovenia, /dited $: OH9eefe, .? 6oeecke, (.? Friar, .? Pucihar, A.?

6enart, F., Moderna organizaci4a, 9ran4.

"1. /nter2orks ="B: D3hallenges and 'olutions in 'upplier &nablement6

)pportunities for Ke"eraging &-maretplaces to 2our Ad"antageE.

/Eecutive Overvie2, /nter2orks nc. 222.enter2orks.com ="%. Covemer,

"1B

"". Fre2al, R.? (omer, . M.? Mehta, R. ="1B: An nvestigation into the

Antecedents of Organizational Participation in usiness-to-usiness

/lectronic Markets. @ournal of Mareting.


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#". Ramsdell, F. ="B: GThe real business of B+BH. http:IImckinse$Duarterl$.comIelectronIreu.asp

##. Russ, C. ="1B: D&-maretplaces6 0e# 3hallenges for &nterprise Policy,

3ompetition and 'tandardisation. e&urope go 7igitalE. @orkshop Report,

russels, "#-") April.

#). 8egev, A.? Feauer, . and 7Wrer =1!!!B: nternet ased /lectronic

Markets. &lectronic Marets, ettleme$er, 7. =1!!!B: GThe nternet as a Medium for

Mareting 3ommunications6 3hannel 3onflict o"er the Pro"ision of

nformationH. @orking Paper, une.

#. 8teinfield, (.? (a$, 6. =1!!#B: 8trategic organizational applications of

videoteE among var$ing net2ork configurations. Telematics and

nformatics,


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ORGANIZA"I?#&I @IM+%NI"I $#'?%NOG $A#&A NA %%&TRONI@&ATRBITA

#aCeta:

Privlanost poslovan4a putem =@orld @ideB @ea 4e 4asna: agregiran4em velikog ro4akupaca i prodavaa, te automatiziran4em transakci4a, elektronika trViUta poveZava4u

izor dostupan kupcima, ali i pruVa4u prodavatel4ima pristup novim kupcima, tesman4u4u transkaci4ske troUkove za sve uesnike u trgovan4u. &laz na elektronikotrViUte 4e povezan s reinVen4eringom, povezivan4em informaci4skih sustava, st4ecan4emnovih znan4a putem treninga i uen4a, te investiran4em u nove informaci4ske tehnologi4ei soft2are. Organizaci4a ko4a nam4erava s usp4ehom uZi u elektroniko trViUte, mora seza takav korak paVl4ivo pripremiti. 8amo Ze takav pristup organizaci4i otvoriti potpuni

pristup svim moguZnostima ko4e sto4e na raspolagan4u, te dovesti do oekivanih poslovnih rezultata. & radu se predstavl4a4u razliiti olici elektronikih trViUta, teuporaa elektronikih trViUta u poslovan4u. Cadal4e se iznose rezultati istraVivan4a provedenog u "+ velikih slovenskih poduzeZa. & istraVivan4u se razmatra trenutnarazina koriUten4e elektronike trgovine i trViUta u velikim slovenskim poduzeZima, te seizdva4a4u organizaci4ski imenici ko4i se ci4ene itnim za usp4eUan ulazak na

elektronika trViUta. & zakl4uku rada se iznose preporuke za organizaci4e ko4enam4erava4u uZi na elektroniko trViUte.

*+


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*

the use of e commerce

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