Abstract
Old economy' companies are increasingly setting up electronic marketplaces for procurement of supplies, either alone or as part of a consortium of competitors within an industry. In this paper we develop a framework for governance structures of electronic markets and contrast different structures by using a case study in the automotive industry. Focus is General Motors' decision to join the industry marketplace Covisint and Volkswagen's decision to build an individual solution. Building on multiple theories from inter-organizational relationship formation we analyze the advantages and disadvantages of the consortium-based exchange vs. private and third-party exchanges and illustrate these within our case, working towards a comprehensive contingency framework.
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