This study investigates the impact of environmental factors on the decision to electronically integrate operations with international customers and/or suppliers. The following research question motivates the study: How does the environmental context affect the level of electronic integration of an organization with its international partners? This study elaborates on the concept of electronic integration. Studies on integration in general and electronic integration in particular adopt a loose definition of integration: they all agree in that integration is the opposite of markets, but they define this opposite in different terms: relationship contracting, long-term contracting, coordination, etc. Finally, the study also responds to Wathne and Heide’s (2004) call for a more comprehensive study of governance mechanisms in B2B, with emphasis on monitoring mechanisms.