Node to Network: Partnerships in the Second-Hand Book Trade

For the last number of years the Internet, electronic commerce and electronic business have being offering exciting new competitive opportunities for SMEs to extend their customer base into the global marketplace and broaden their involvement into new international markets. Web based business can be an extremely attractive option for SMEs to create a global presence without vast expense when compared to other media and the emergence of internationally active SMEs is a worldwide trend (Fellenstein & Wood, 1999). One area where the Internet can help lessen the impact of geographical distance is in enabling the restructuring of supply chains with a view to enhancing alliances and promoting the efficient and timely exchange of information between business partners. The integration of advanced technology and partnership sourcing offer SMEs unprecedented opportunities within the global marketplace (McGloin & Grant, 1998). Through partnerships, SMEs can increase business on their web site; conduct low risk business experiments; gain access to information technology competencies; and serve foreign markets through the use of local partners (De Man et al. 2002). Establishing e-business partnerships has therefore become a strategic means for retailing SME firms to gain access to new markets, new channels to serve customers and enhance the value of their offering through an infinite array of complementary products and sophisticated value-added services without losing autonomy and at lower levels of investment and risk (Rahman & Raisinghani, 2000). Partnerships help to bridge the gap between the firm’s present resources and its expected future requirements (Hoffman & Schlosser, 2001). The network nature of the electronic medium makes it easier for online retailers to develop their unique competencies and bring together or borrow resources and expertise from a wide