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This study provides insights about the activities, challenges, and options BTAs face when confronted with rapidly advancing information technology. Recently, disinlcrmediaiion has become a threat for BTAs, due to the possibility of direct selling. First, BTAs' visions on the developments in their environment and on their future are assessed. Theoretically, the ubiquitous information networks may enable suppliers to reduce transaction costs. However, the application of the transaction cost theory to the disimermediation process warrants reevaluation. Closer analysis of the intermediary functions BTAs perform reveals that they can gain considerably by paying more attention to matching products to clients' needs and by deliberately addressing supplier risk management. BTAs may reinforce their position by exploiting on widely available information infrastructures. The focus of this article is managerial, as opposed to technical.
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