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E-Lance Enabled Network Exchanges within Supply Chains: The Influence of Network Governance and Social Control Mechanisms on Network Success

Robert E. Hooker, Carmen C. Lewis, Molly M. Wasko, James L. Worrell and Tom Yoon
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Robert E. Hooker: Department of Marketing, University of South Florida, Tampa, FL, USA
Carmen C. Lewis: Sorrell College of Business, Troy University, Troy, AL, USA
Molly M. Wasko: Department of Management, Information Systems and Quantitative Methods, University of Alabama at Birmingham, Birmingham, AL, USA
James L. Worrell: Department of Accounting and Finance, University of Alabama at Birmingham, Birmingham, AL, USA
Tom Yoon: Management Information Systems Department, Western Connecticut State University, Danbury, CT, USA

International Journal of Information Systems and Supply Chain Management (IJISSCM), 2016, vol. 9, issue 2, 1-20

Abstract: E-business based e-lance networks can impact the coordination and completion of work within organizations and improve efficiencies in global supply chains. This may be particularly true for organizations mitigating sudden demand spikes, or lacking internal expertise and bandwidth. However, little is known about what governance and social control mechanisms impact network success. Utilizing data from 14,644 projects, this research tests a theory of network governance specific to this new emerging e-lance economy by integrating transaction cost economics with the concepts of social controls. For transaction costs, findings indicate that higher average project values lead to more projects and more money being exchanged, but more bids leads to less monetary exchange. For social controls, restricting access by sealing bids and not disclosing budget amounts leads to less bidding, but not disclosing budgets is associated with more projects being posted. The authors further find that the best predictor of e-lance success across all measures is the number of projects posted in the prior time period.

Date: 2016
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