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Information technology (IT) has been applied to support information sharing between organizations
and to streamline corporate purchasing. Such interorganizational information systems (IOISs ), as they
are often referred to, can form electronic marketplaces where buyers and sellers in a vertical market can
exchange information and make transactions (Bakos, 1991). Before the commercial application of the
Internet and the World Wide Web, proprietary information systems such as electronic data interchange
(EDI) systems were the major means by which firms exchanged business documents electronically in a
standard machine-processable format. Although the EDI systems continue to enable firms to achieve
more efficient data and information management and to improve supply chain management, there are still
a lot of companies that do not yet use EDI due to the relatively high costs of implementing and running
such systems (Waltner, 1997). These costs include the investments in installing the systems and the
expenses involved in leasing communications networks, or value added networks (VANs), among other
cost drivers.
Internet-based e-
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