Abstract
E-business based e-lance networks can impact the coordination and completion of work within organizations and improve efficiencies in global supply chains. This may be particularly true for organizations mitigating sudden demand spikes, or lacking internal expertise and bandwidth. However, little is known about what governance and social control mechanisms impact network success. Utilizing data from 14,644 projects, this research tests a theory of network governance specific to this new emerging e-lance economy by integrating transaction cost economics with the concepts of social controls. For transaction costs, findings indicate that higher average project values lead to more projects and more money being exchanged, but more bids leads to less monetary exchange. For social controls, restricting access by sealing bids and not disclosing budget amounts leads to less bidding, but not disclosing budgets is associated with more projects being posted. The authors further find that the best predictor of e-lance success across all measures is the number of projects posted in the prior time period.
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