Technological advances have made it feasible for small and medium-sized enterprises (SMEs) to become active in global markets through information technology (IT)-mediated electronic intermediaries (e-intermediaries) instead of relying only on traditional export channels. E-intermediaries may offer SMEs a level playing field for competing with their larger competitors. Based on transaction cost economics (TCE), this study develops a model that can address the question of which transaction costs and characteristics are closely related to e-intermediary use by SMEs. In addition to providing a better understanding of e-intermediaries, the study explores the relationships between e-intermediary use, transaction costs, and transaction characteristics in the context of Korean SMEs. © 2013 Wiley Periodicals, Inc.