A Taxonomy of Intermediary Integration Strategies in Online Markets

We propose a taxonomy for understanding the structural conditions under which intermediaries in online markets choose their strategies, roles and functions. The fundamental concept behind these choices is integration – vertically and horizontally. Integration is a complex, multidimensional concept influencing the choice of strategy, governance form and business model. We propose a taxonomy identifying a set of structural conditions concerning markets, actors, products and individual transactions determining an intermediary's integration options (map-it). Our taxonomy is built on combining theoretical frameworks as well as evidence from online markets. We demonstrate the use of our taxonomy by applying it to the online financial advice sector. The application reveals how structural conditions make intermediaries choose specific integration options. A Taxonomy of Intermediary Integration Strategies in Online Markets

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