Management Considerations for B2B Online Exchanges

Information systems that link businesses for the purpose of inter-organizational transfer of business transaction information (inter-organizational information systems, or IOIS) have been in use since the 1970s (Lankford & Riggs, 1996). Early systems relied on private networks, using electronic data interchange (EDI) or United Nations EDIFACT standards for format and content of transaction messages. Due to their cost and complexity, the use of these systems was confined primarily to large companies, but low-cost Internet commercialization has led to much more widespread adoption of IOIS. Systems using the Internet and the World Wide Web are commonly referred to as B2B (business-to-business) systems, supporting B2B electronic commerce.