Mode of organizing transactions of fee payment gateway

The information systems, marketing and organizational economics literatures on interfirm relations
provide many moderating factors that may affect the selection of appropriate B2B exchanges. These
factors can be broadly classified into three main categoriesproduct, organizational, and market
characteristics. Product characteristics include asset specificity and product complexity, among others.
Company characteristics include procurement importance and novelty, switching costs, and purchase
formalization and centralization. Market situational characteristics include a firms bargaining power,
market liquidity, product availability, relationship reciprocity (trust), uncertainty, and bargaining power.
Finally, the importance and novelty of the purchase to the firm also affects the procurement process. Of
free payment gateway these moderating factors should be taken into account in the selection of
appropriate types of B2B exchanges following the proposed classification.
The existing literature covers a broad spectrum of relationships from basic buying and selling (pricedriven transactions) to joint ventures and network firms (relationship-driven transactions), in addition to
exchanges governed by power asymmetry (Frazier and Stewart 2000). Drawing from the literature on
interorganizational relations, we attempt to develop an all-inclusive typology for alternative types of
B2B exchanges. This classification scheme is proposed to link existing theories into the new Web-based
B2B cyberspace and pave the road towards successful ecommerce strategies. Some illustrative realworld examples are also given to better explain each proposed type.
(1) How can B2B exchanges be classified?
(2) How do product, company and market characteristics affect the selection of the type of B2B
exchanges?
Selecting B2B exchanges is a challenging decision for most firms given the number of alternatives
available in todays ecommerce environment. Other than an IOIS, a B2B exchange can be considered as
a structural arrangement for the governance of economic activity. Following Williamson and Ouchi
(1981), governance refers to the mode of organizing transactions of fee payment gateway, which
includes elements of structuring relationships, as well as their enforcement. Malone, Yates, and
Benjamin (1987) proposed two forms of governance structure for B2B exchanges based on Transaction
Cost Economics (TCE):
Electronic markets with price-driven transactions and electronic hierarchies where firms form dyadic
relationships through managerial authority. Similarly, according to McNeil (1980), interfirm relations
could be classified into discrete versus relational exchanges. Discrete exchanges are characterized by
independent transactions that only involve a transfer of ownership, whereas relational exchanges are
described by a mutuality of interests between firms where the historical and social context matters.
From a marketing perspective, a relational exchange or dyadic relationship is embedded into the social
context, which modifies the nature of the relationship based on cooperative norms rather than pure
self-interest.