MAP-IT: A Model of intermediary Integration Strategies in online Markets

We propose a model for understanding the structural conditions under which intermediaries in online markets choose their strategies, roles and functions. The fundamental concept behind these choices is integration – vertically and horizontally. Integration is a complex, multidimensional concept including strategy, model (governance) and form (firm boundaries). Five dimensions constitute our integration typology. We identify a set of structural conditions concerning markets, actors, products and integrated transactions that relate to this integration typology: the ”MAP-IT model”. With this model, we explain how intermediaries choose to organize their businesses in different markets. Our model is built on a theoretical framework as well as evidence from online markets. We demonstrate the use of our model by applying it to the online financial advice market. The application reveals how structural conditions give intermediaries several integration options