The Evolution of an Internet Market Exchange and Value System: Examples From The Motion Control Industry

This manuscript examines the evolution of internet value systems in the motion control industry. We believe the primary reason behind the inconsistent performance of that industry’s adoption of the internet in the supply channel was largely due to poor strategy. Using a the concepts of bias exchanges and game theory it is suggested that internet strategies such as disintermediation and first-mover advantage were elusive because firms focused too much on technology and not enough on customer value. Lessons for managers and future decisions are offered