Electronic data networks and inter-firm relations: A French and US comparative analysis

We investigate the patterns of use of electronic data networks for transactions between producers and suppliers, comparing usage in France and the United States. This comparison was chosen to investigate whether or not the existing network infrastructure alters the incentives to participate in interfirm networks. In the U.S., corporate intranets and the internet are quickly gaining acceptance among businesses. Moreover, costs for private networks are among the lowest in the world. In France, the Teletel network has long provided one possible public interfirm data network infrastructure, while costs for traditional private networks are considerably higher than in the U.S. National surveys in France and the U.S. reveal that despite 15 years of experience a public national data network infrastructure, France still lags beyond the U.S. in business to business electronic transactions. However, using a transaction cost theoretical framework, we show that the factors that influence network use, as well as the impact on such use on interfirm relationships, are quite similar in both countries, despite the lower overall network use in France.