Virtual interorganizational relationships in business-to-business electronic markets: heterogeneity in the effects of organizational interdependence on relational outcomes

Business-to-business electronic markets have emerged as robust, legitimate channels for conducting transactions, where firms participate in these markets according to their investments in the channel, such that they might participate as an expert, explorer, or passive firm. Over time, repeated interactions with the same trading partners can result in virtual interorganizational relationships even in an environment predicated to promote transactional exchange. We suggest that the nature of firm participation should moderate the influence of organizational interdependence—which comprises both total interdependence and interdependent asymmetry—on relational outcomes such as trust and satisfaction for virtual interorganizational relationships that arise in the electronic market. Results from analysis of data collected from a survey of participant firms in an electronic market confirm the moderating role of the nature of participation. Across the three participation states, total interdependence enhances relational outcomes at a diminishing rate. In contrast, interdependence asymmetry does not influence relational outcomes for expert firms, diminishes them at an increasing rate for explorer firms, and increases trust at a decreasing rate for passive firms. The interaction between total interdependence and interdependence asymmetry increased satisfaction for expert firms and decreased trust and satisfaction for explorer firms.