How Marketplace Governance Creates Financial Value: Supply Chain Capabilities and Financial Governance Efficiency in Retail Ecosystems
Description
Retail marketplaces increasingly operate as multi-actor ecosystems in which governance structures shape not only operational coordination but also financial relationships among retailers, suppliers, and other channel partners. We examine how marketplace structure (MP) influences financial governance efficiency (FGE) and shareholder value (SHV), while considering the contingent roles of supply chain capabilities (SCC) and environmental turbulence. We conceptualize FGE as an interorganizational governance mechanism, as reflected in working capital management, supplier financing, and asset deployment. Using longitudinal data from 24 large U.S. retailers across pure-play, omnichannel, and traditional marketplace structures from 2009 to 2023, we combine conventional panel estimation with Arellano–Bond dynamic-panel analysis. Results show that MP systematically shapes FGE and that FGE contributes to SHV. SCC alters the MP–FGE relationship across marketplace structures, while environmental turbulence strengthens the value of FGE. A shorter cash conversion cycle also supports SHV, highlighting working-capital discipline as a financial governance mechanism. The study extends industrial marketing research by connecting marketplace governance, interorganizational resource orchestration, and financial value appropriation. It also shows that resource scale and ownership alone do not determine financial outcomes; firms create value through the alignment of governance architecture, SCC, capital deployment, and financial coordination.
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We extracted financial data for each retailer from the London Stock Exchange Group (LSEG®), which provides essential financial market data and infrastructure for investors, academics, and practitioners.