Original Paper

Service Business

, Volume 1, Issue 1, pp 41-62

First online:

Factors influencing suppliers’ participation in private electronic markets

  • Sang M. LeeAffiliated withDepartment of Management, University of Nebraska-Lincoln Email author 
  • , Seong-bae LimAffiliated withJones School of Business, SUNY-Geneseo

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This study is intended to identify factors, which influence suppliers’ participation in the private electronic market (PEM). The results of this study show that many suppliers do not recognize the potential benefits that PEM could offer and they do not believe their off-line relationships with a buyer could be transferred to on-line. Thus, buyers need to convince their suppliers that PEM is not just a price based marketplace but instead a business model where mutual benefits can be achieved based on existing trust relationships between a buyer and limited number of qualified suppliers.


Business to business market Private electronic markets Electronic data interchange Incomplete contract