Advancing Theory of New B-to-B Relationships: Examining Network Participants' Interpretations of E-Intermediary Innovation, Diffusion, and Adoption Processes

Abstract

ABSTRACT What are the process dynamics during interactions among industrial buyers and marketers when creating and revising radically new business models governing interorganizational relationships? This article increases understanding of this issue by applying diffusion theory, propositions in the strategy management literature, and the results of a direct, case research, field study. The findings are as follows: (1) the dynamic interactions among industrial marketers and buyers lead to revisions in the objectives of a radically new e-intermediary's business model during its development process; (2) market demands and relationships between the actors suggest that e-intermediary firms support and encourage performing firms while non-performing firms are not supported or encouraged in the short term; (3) having control of embedded information and technological limitations, e-intermediary firms favor buyer firms over seller firms; and (4) agile organizational structures affect the participating firms' efficiencies positively but not their effectiveness. The article advances theory about the dynamic interactive nature of innovation and adoption processes in B2B environments.