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ABSTRACT Rapid developments in e-commerce and e-technology have accelerated intra-business and inter-business online transactions during recent years. Following an empirical survey, critical factors influencing a firm's willingness to use an e-marketplace are identified via a pre-joining, decision to join, and post-joining research structure. The differences between companies participating and not-participating in e-marketplaces are also examined. However, owing to the samples being limited to Taiwanese enterprises, cautious is needed in generalizing the findings of this study to other countries with different cultures or industry structures. Keywords: B2B E-Marketplace, Electronic Marketplace, Web-Based Services 1. Introduction Given the explosive growth in Internet-based technologies and e-commerce, a growing number of brick-and-mortar trading activities have moved to the Internet, and are typically conducted via web-based systems called e-marketplaces that enable automated transactions and collaboration between buyers and sellers. According to the e-Marketer [2004], total e-commerce in the business-to-business (B2B) sector exceeded US$ 2.77 trillion in 2003 whereas e-commerce in the business-to-customer (B2C) sector reached US$ 0.452 trillion in 2003. E-Marketer [2004] also reported that North America accounted for US$ 1.6 trillion of the US$ 2.77 trillion B2B e-commerce market, with the remainder being comprised as follows: Asia-Pacific, US$ 0.3 trillion, Europe, US$ 0.8 trillion, Latin America , US$ 0.58 trillion, and Africa and the Middle East together accounting for US$ 0.177 trillion. The market intelligent center (MIC) based in Taiwan [MIC, 2004] reported that the value of e-marketplace transactions in Taiwan exploded between 2000 and 2003 (recording US$ 56 million in 2000, US$ 125 million in 2001, US$ 406 million in 2002, and US$ 750 million in 2003). By 2007, 50% of B2B e-commerce in Taiwan will be transacted through e-marketplaces, compared to an average of 55% of B2B e-commerce worldwide via e-marketplaces, according to Internet Data Center (IDC) Report [IDC 2005]. Metcalfe et al. [2002] predicted that US firms would shift 42% of online trading to e-marketplaces in the next five years and lead trading in e-marketplaces in the US to exceed US$ 3 trillion in 2006, while European B2B e-marketplace are expected to top US$ 2.8 trillion in 2006. Jupiter Research [2002] estimated that B2B e-marketplaces accounted for 3% of global trade in 2000, and predicted this would reach 36% in 2005. Furthermore, Gartner Group Report [Gartner 2003] estimated that e-marketplaces would transact US$ 7.3 trillion of global trade in 2007. Although the e-marketplace has experienced the up and down of its rollercoaster ride in the beginning period, its future seems prosperous as projected by many industries and academic institutes. Moreover, e-commerce figures may vary subject to survey time and calculation formulas, but the clear trend is for B2B e-commerce to significantly exceed B2C e-commerce, and for e-marketplaces to contribute significantly to B2B e-commerce growth. Unlike most e-marketplace studies [Bakos 1991&1998; Kalakota & Whinston 1997; Leebaert 1998; Clemons & Wang 2000; Koch 2002; Yu 2003; Fairchild et al. 2004] which utilize the e-marketplace business perspective to explore - how e-marketplaces emerged, their development, role, and classification, major phases of in building an e-marketplace, the key factors contributing to the success of e-marketplaces, e-marketplace competitive strategies' analysis and evaluation, and so on, this investigation aims to understand the causes driving companies to participate in e-marketplaces from the perspective of e-marketplace participants. Furthermore, as Rash and Kragh [2004] noted, the current literature not yet explored in detail the motives relating to e-marketplace participation and non-participation. This study attempts to comprehensively explore the factors driving enterprise decisions regarding whether to conduct business via e-marketplaces. …
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