Virtual communities for SMEs: A cautionary tale of an electronic marketplace

Abstract

This paper reviews the concepts of virtual communities and electronic marketplaces and, in particular, their relevance for SMEs. A specific example of a Regional Electronic Marketplace (REM) using a Community Web model is examined within this context. The author reviews the underlying philosophy for the project and the planning which preceded implementation. A review of the case highlights the issues which are critical for successful implementation and provides a framework to guide future REM developments. The case is analysed within an e-community context and recommendations made for future portal developments. Finally the author questions the readiness of SMEs to adopt a virtual organisation model. © 2004 Springer Science + Business Media, Inc.