A Framework for Electronic Reverse Auction (eRA) Research

ABSTRACT After nearly two decades, electronic reserve auction (eRA) continues to be a widely-used eProcurement tool. Buyers report that eRA helps them reap savings in cost and procurement time and expands the pool of eligible suppliers. Suppliers point out reduced operating, selling or customer acquisition costs, a more level playing field, and access to new markets. However, questions have been raised about the actual benefits of eRA for buyers and suppliers and its potentially negative impact on buyer-supplier relationships. Given the controversy over the nature of the outcomes actually achieved with eRA, more research is needed to provide insights that can guide buyers and suppliers toward effective use of eRA. To this end, this paper identifies independent variables which impact electronic reverse auction outcomes, intervening process variables related to the way eRA is implemented, and outcome variables that are important to buyers and suppliers who use eRA. The variables are mapped onto a framework, and future research directions related to these variables are discussed.