A conceptual model for interactive buyer-supplier relationship in electronic commerce

In this paper the interactive nature of the buyer-supplier relationship in the era of electronic commerce will be explored. Through broad range review s of previous works on relevant topics, this paper proposes a conceptual mo del to demonstrate the rationale of the buyer-supplier interaction with inf ormation service provider's mediation in the electronic commerce environmen t. By taking information service provider as an intermediary, our model inc ludes buyer, supplier and information service provider as three major parti es. The rationale of interaction between buyer and supplier is rooted in in dividual party's objectives which usually fall into two categories: cost an d quality. This model also takes the following three items into considerati on: (1) information flow, (2) flow of goods or services, and (3) feedback i nformation. Finally, our study provides the implications and suggests that the following factors can affect the way buyer and supplier interact: the m anagerial practices, the types of relationship, and the extent to which com panies dominate the market. (C) 2001 Published by Elsevier Science Ltd.