Challenging the global, rediscovering the local: voluntary market restriction in C2C e-marketplaces

The current age of networked information systems brings concerns that in an increasingly global world the dominance of multinational corporations overrides regional and national identities. This view is challenged by the concept of glocalisation where ideas in the global environment are adapted to take account of local cultures. Many organisations operating globally seek to adapt their business strategies to fit with local environments. However, in an increasingly glocalized world organisations may curtail their market by forming boundaries around their online presence; in essence making local what is potentially global. We have identified this strategy of boundedness as 'voluntary market restriction'. This study aims to examine voluntary market restriction in the consumer-to-consumer (C2C) space where online marketplaces are differentiating themselves by creating boundaries within which they embed communities. This paper examines three C2C e-marketplaces with strong similarities in their market mechanisms that have the potential to operate globally, although two have chosen not to do so. These two market makers have put boundaries around their markets; one by language and one by geography. They have succeeded in wresting considerable local market share from the global e-marketplace. The paper concludes by discussing the implications of the research and suggestions for future study