Executive decision‐making traps and B2B online reverse auctions

Purpose – The purpose of the paper is to describe common decision‐making traps experienced by senior managers when considering the use of online reverse auctions as a means for sourcing goods and services and to reduce purchase prices.Design/methodology/approach – The paper examines the information evaluated and decision‐making process used by senior managers in relation to common decision‐making traps.Findings – Decision‐making traps are shown to lead to poor decisions related to the use of online reverse auctions.Research limitations/implications – Exceptions to observations and findings presented may exist. The paper provides a foundation for further investigation on how strategic sourcing processes are evaluated and selected by senior managers.Practical implications – The paper is useful for managers as a guideline to evaluate sourcing options and avoid errors that can interrupt supply, reduce product or service quality, extend lead times, increase costs, or impair buyer‐seller relationships. It is he...