Hongli Hu
ABSTRACT
According to the theory of Transaction Cost Economics, markets and hierarchies are two basic and alternative models of organization. In the environment of Electronic Commerce, markets and hierarchies have been transforming into Electronic markets (EMs) and Electronic Hierarchies (EHs). It shows that both EMs and EHs have been developed in the environment of Electronic Commerce. However, as two different mechanisms; the relationship between them is not only contradiction but also coordination. In this paper, the relationships between EMs and EHs in the context of electronic commerce will be discussed.
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