Electronic B2B inter-marketplace alliances, mergers and
acquisitions: motives, obstacles and trends

Abstract: Professional analysts forecast an explosion of the number of business-to-
business (B2B) e-marketplaces, followed by a consolidation process where
alliances, mergers and acquisitions within the B2B e-marketplace space are
becoming more important.

This qualitative cross-industry research of 26 cases of electronic B2B inter-
marketplace alliances, mergers and acquisitions has resulted in conclusions
regarding motives for, and obstacles with these B2B inter-marketplace
partnerships. A number of trends affecting the future B2B e-marketplace
configuration have also been identified. How to deal with the implications
of these findings for B2B e-marketplaces and brick-and-mortar-companies are
also discussed.

Liquidity was found as a motive for forming B2B inter-e-marketplace
partnerships along with motives related to the market, technology and
finance. Identified market-related motives for forming B2B inter-e-
marketplace partnerships include getting access to new suppliers and buyers:
having common suppliers and buyers: getting access to expertise: enhancing
the image of the e-marketplace: sharing or reducing risk: joint marketing
activities: and closing windows of opportunities and higher barriers to
entry for competitors. Identified technology-related motives for forming B2B
inter-e-marketplace partnerships include cross offering and co-development
of service applications: exchange of value-added services: and standards
enforcement. Identified financial-related motives were found to include
getting access to capital and raising capital from investors.

Obstacles with forming B2B inter-e-marketplace partnerships are found to be
market-, technology-, financial-, and governance-related. Obstacles include
bad timing: time-consuming negotiations due to lack of focus: anti-trust
laws: image focus: user face obstacles, application layer obstacles:
platform/infrastructure layer obstacles: revenue sharing: take-over price:
management: lack of trust: cultural differences: and collaboration and
competition around intellectual property.

Identified trends, affecting the future B2B e-marketplace-configuration,
include a "waiting game": reluctant investors: partnering as a survival
strategy: technology solutions specialisation: personalised user interfaces
and standards for E2E collaboration. A vision of future partnering models is
presented and the future form of e-marketplaces is discussed along the
dimensions bias and ownership. Competition versus collaboration between e-
marketplaces is discussed as well as internationalisation.

Regarding the implications of the research results for e-marketplaces,
advise for how to tackle market-, technology-, financial- and governance-
related obstacles, along with additional guidelines for e-marketplace
survival and success is presented. Regarding the implications of the
research results for brick-and-mortar-companies, suggestions are for them to
take an active part in the B2B e-marketplace evolution. Three B2B e-commerce
strategies with different levels of investment commitment are presented.