On the performance of B2B e-markets: An analysis of organizational capabilities and market opportunities

This research is a study of factors leading to the success of business-to-business (B2B) electronic marketplaces (EMs). A model based on both organizational capability and market opportunity theories was developed to explain the performance of B2B EMs. Organizational capabilities included service provision capability and its enabling capabilities, entrepreneurial orientation and human resource capability, whereas market opportunity was modeled as market size and e-commerce awareness of the industry. Data were collected from 128 B2B EMs in China and analyzed using Partial Least Squares. Results suggest that the research model explains the performance of B2B EMs well. More specifically, among the two service capabilities studied, service width contributes significantly to EM performance, while the effects of service depth are yet to be seen. Moreover, the enabling organizational capabilities and market opportunity factors affect EM performance both directly and indirectly through their enhancement of EM service provision capability.