Electronic markets that make it easier for businesses to find partners can change how companies work together. By studying firms in a value chain connected to a common electronic market, researchers found that lower search costs can lead to more outsourcing and market-based transactions. The type of technology used affects whether companies will outsource more or integrate tighter. When searching for partners is information-heavy, electronic markets lead to more outsourcing and less integration. But when searching is communication-heavy, electronic markets lead to tighter integration. This research shows that the type of technology and business activities supported by electronic markets can greatly impact how companies work together.