2006
DOI: 10.1111/j.1083-6101.2000.tb00343.x
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The Effects of Electronic Commerce on the Structure of Intermediation

Abstract: The paper questions the notion that the diffusion of electronic commerce will lead to disintermediation. Rather than interpreting intermediation as a single service it is pointed out that intermediaries can provide a number of services. The analysis based on the New Institutional Economics, Market Microstructure Theory, and Information Economics shows that the three intermediation services studied are, generally, not under threat by the diffusion of electronic commerce. The overall effects on intermediation de… Show more

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Cited by 38 publications
(18 citation statements)
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“…The results from [48] and [49], along with others from the field of e-commerce, seem to indicate that the effect of e-commerce on the structure of intermediation relies on numerous factors, such as industry characteristics, types of products/services exchanged and power structures within the value chain. While e-commerce may, actually, diminish the importance of intermediaries within a supply chain by allowing the direct interaction between a firm, its customers and other business partners, it can also breed a phenomenon of reintermediation, that is to say that new electronic intermediaries will appear and take on new roles within a supply chain.…”
Section: Introductionmentioning
confidence: 84%
See 1 more Smart Citation
“…The results from [48] and [49], along with others from the field of e-commerce, seem to indicate that the effect of e-commerce on the structure of intermediation relies on numerous factors, such as industry characteristics, types of products/services exchanged and power structures within the value chain. While e-commerce may, actually, diminish the importance of intermediaries within a supply chain by allowing the direct interaction between a firm, its customers and other business partners, it can also breed a phenomenon of reintermediation, that is to say that new electronic intermediaries will appear and take on new roles within a supply chain.…”
Section: Introductionmentioning
confidence: 84%
“…Schmitz [49] believes the use of e-commerce will not diminish firms' interest in various types of services offered by intermediaries. The author uses the agency theory to measure the influence of the proliferation of e-commerce on firms' interest in three services provided by intermediaries: (1) holding inventory to provide the service of "immediacy" and insurance against systematic valuation risk; (2) reducing asymmetric information by establishing a reputation, and (3) gathering, organizing and evaluating information scattered throughout society.…”
Section: Introductionmentioning
confidence: 99%
“…"digital disintermediation" (Choi et al, 1997;Hoffman et al, 1995;Wigand, 1997;. However, even with ICTs, in some kinds of markets there may be reason for continued reliance on the services of "middlemen" (Adelaar, 2000;Bailey & Bakos, 1997;Klein & Selz, 2000;Schmitz, 2000;Scott, 2000). The "middleman" is a pervasive response to information and other market imperfections in developing countries.…”
Section: A Critique Of the Standard B2b E-commerce Modelmentioning
confidence: 99%
“…For example, a high level of standardization, an easy description and a low level of complexity to be evaluated represent valid requirements to ease the distribution of goods via electronic commerce (Schmitz 2000).…”
Section: Tilesquare: a Strategic Improper Networkmentioning
confidence: 99%