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Formation and Failure of an E‐Marketplace Pioneer in a Developing Country
Author(s) -
Effah John
Publication year - 2014
Publication title -
the electronic journal of information systems in developing countries
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.41
H-Index - 18
ISSN - 1681-4835
DOI - 10.1002/j.1681-4835.2014.tb00433.x
Subject(s) - developing country , license , revenue , business , business failure , marketing , business model , focus (optics) , political science , economic growth , economics , finance , physics , optics , law
The purpose of this study is to understand the formation and failure of an e‐marketplace pioneer in a developing country. Much of the research on e‐marketplaces focuses on the developed world. Within the limited literature on the developing world, the dominant focus has been on user adoption and related constraints. Little research thus exists on how emarketplaces are formed and whether they succeed or fail. This study therefore follows qualitative interpretive case study methodology to investigate the formation and failure of an e‐marketplace pioneer in a developing country. The findings show that the e‐marketplace was formed without a clear e‐business model and without enough attention to the developing country environment. The failure was subsequently caused by inability to generate revenue and failure to renew domain name license. The paper advises potential entrepreneurs to pay attention to their local environment and develop e‐business models with appropriate revenue options to guide their e‐marketplace initiatives.