Title:	DIGITAL MARKET FORMATION: A CASE STUDY FROM COMMERCIAL LIGHTING INDUSTRY
Author(s):	Ashini Wesumperuma and Upul Gunawardana
ISBN:	978-989-8533-72-2
Editors:	Piet Kommers, Tomayess Issa, Pedro Isaías and Ana Hol
Year:	2017
Edition:	Single
Keywords:	Digital Marketplace, Community, Trust, Entrusted Circle, Transaction, Business Needs
Type:	Full Paper
First Page:	99
Last Page:	106
Language:	English
Cover:
Full Contents:	click to dowload
Paper Abstract:	Advancement of Information Technology together with trust building mechanisms have provided the platform for digital marketplaces to get formed. A marketplace provides the environment for the producers and consumers to interact and do business transactions. If there is a valuable business transaction that can be replicated, extended, or customized to suit a recurring business need, communities get formed who become partners of the value chain. Such a community has the capability of successfully completing a business transaction with reduced transaction cost. As the business need is recurring, the members in this community tend to form an “Entrusted Circle” and together provide its consumers with goods, service or information as a united front. Entrusted Circle is a phenomenon that can be observed in traditional business systems. In the digital domain, these entrusted circles are currently emerging. However, favorable environmental conditions that let Entrusted Circles to form in traditional and digital systems differ. This paper presents a cross-sectional case study of commercial lighting industry domain in Australia. In here, we present our domain evaluation, application of theories and recommendations for digital marketplace formations by emphasizing the importance of Entrusted Circles. Further, the paper shows how to identify Entrusted Circles and support and sustain such relationships among value chain members to successfully conduct business transactions in a digital marketplace.
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