Effects of electronic markets: an analysis of four cases in the Dutch flower and transport industries

This article aims to promote a better understanding of the positive and negative effects of electronic markets. The central questions are: what are the main effects of electronic markets and what factors can explain these effects. A framework to evaluate electronic markets has been developed. Analytical aspects of the framework are: motives of participants, mode of cooperation, entry barriers, electronic market structure and functionality, and effects of electronic markets on different stakeholders. Empirical evidence was found in four cases in two industries: the Dutch flower industry and the Dutch transport industry. In both industries the Netherlands is recognized as one of the world´s leading countries. Results indicate that a situation combining convergent motives for entering an electronic market, network modes of cooperation, high entry barriers, and a specific electronic market structure and functionality is related to positive effects for all stakeholders. A hyperbolic relationship between electronic market structure and electronic market functionality is reported. The results of the analysis and the framework itself illustrate the various complex issues that arise in the design and implementation of electronic markets