M. Fritz, et al. / International Food and Agribusiness Management Review Volume 7, Issue 1, 2004
Cooperations for the Joint Development of Transaction Standards
Cooperation initiatives for the joint development of transaction standards are
strategic alliances between “Large consortia” platforms and specialized “Neutral
verticals”. Transaction standards allow for transaction transmission across different
platforms and prepare an interconnected platform network between “Large
consortia” and the specialized “Neutral verticals” that would allow for mapping
specific food supply chains. As “Large consortia” platforms are backed by important
agri-food industry players (see above), enforcement of transaction standards in the
agri-food e-commerce infrastructure may be expected.
Both product description and transaction technology standards have a preparative
character for an interconnected platform network and an interoperable agri-food e-
commerce infrastructure. The strategic alliances put the standard development on a
broad basis in the agri-food sector. As a consequence, enforcement and
implementation of the standards in the agri-food sector and the e-commerce
infrastructure may be expected.
Cooperation Initiatives for the Sharing ofTrade Features
Cooperation initiatives for the sharing of trade features are strategic alliances
between “Large consortia” and “Neutral verticals” to combine strategic advantages
of different platform models. They serve for the joint use of platform features, the
sharing of development efforts and know-how transfer. Advantages for “Large
consortia” platforms lie in the outsourcing of development efforts for specialized
trade mechanisms and result in time and cost advantages. The provision of adapted
trade mechanisms to consortia member companies may be seen as prerequisite for
platform utilization. The advantage for “Neutral verticals” lies in the increased
number of platform participants. The value a platform provides for participants
enlarges with the number of participants and has been discussed as network effect
(Shapiro, Varian 2000; Kaplan, Sawhney 2000). Both specialized trading features
and an increased number of platform participants add to the benefit platforms
provide to companies. Platforms providing increased benefit in turn attract
companies and activate platform utilization.
Result: Interconnected Sector E-commerce Infrastructure
In essence, platform cooperation initiatives for the joint development of standards
backed by the industry and the sharing of trade features driven by efficiency
benefits may result in an interconnected, value-added and comprehensive agri-food
sector e-commerce infrastructure and an agri-food sector with standardized product
descriptions. At present, cooperation initiatives for the sharing of features merely
occur between “Large consortia” and “Neutral verticals”. However, emerging
standards for product description and transaction technology open the platform
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