E-reverse auction design: critical variables in a B2B context

Purpose – This paper attempts to provide an empirical cross‐industrial study on critical success factors impacting on “price” and “process” performance in business‐to‐business (B2B) e‐reverse auction design.Design/methodology/approach – Based on an online survey to a panel of academic experts and practitioners, the paper presents the empirical validation of a previous conceptual model using a confirmatory factor analysis (CFA) approach.Findings – Results demonstrate that a multi facet construct consisting of six main dimensions impacts on e‐auction performance. Moreover, these dimensions differently impact on price and process performance.Research limitations/implications – Because of the complexity of the framework, the sample size and the qualitative nature of experts' observations, results should be seen as more indicative than conclusive and therefore generalization should be additionally tested.Practical implications – Findings provide useful information for the formulation of managerial decisions in...

[1]  Isabelle Amelinckx,et al.  Extending electronic sourcing theory: An exploratory study of electronic reverse auction outcomes , 2008, Electron. Commer. Res. Appl..

[2]  J. Hartley,et al.  Getting the most out of reverse e-auction investment , 2007 .

[3]  Ronald M. Harstad,et al.  Computationally Manageable Combinational Auctions , 1998 .

[4]  Thomas Y. Choi,et al.  An exploration of supplier selection practices across the supply chain , 1996 .

[5]  Larry R. Smeltzer,et al.  Electronic reverse auctions: Promises, risks and conditions for success , 2003 .

[6]  D. J. Wu,et al.  Codifiability, relationship-specific IT investment, and optimal contracting , 2003, 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the.

[7]  R. McAfee,et al.  Auctions and Bidding , 1986 .

[8]  M. Emiliani Business‐to‐business online auctions: key issues for purchasing process improvement , 2000 .

[9]  M. P. Wellman,et al.  Price Prediction in a Trading Agent Competition , 2004, J. Artif. Intell. Res..

[10]  David Lucking-Reiley,et al.  Using field experiments to test equivalence between auction formats: Magic on the internet , 1999 .

[11]  Y. Wind,et al.  Industrial buying and creative marketing , 1967 .

[12]  David H. Reiley,et al.  Pennies from Ebay: The Determinants of Price in Online Auctions , 2000 .

[13]  David W. Gerbing,et al.  An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment , 1988 .

[14]  D. J. Wu,et al.  Codifiability, Relationship-Specific Information Technology Investment, and Optimal Contracting , 2003, J. Manag. Inf. Syst..

[15]  Phillip L. Carter,et al.  The Role of Reverse Auctions in Strategic Sourcing , 2003 .

[16]  Vincent A. Mabert,et al.  Internet reverse auctions: Valuable tool in experienced hands , 2002 .

[17]  D. Aloini B2B e-auction: a conceptual framework for sensitivity analysis , 2007 .

[18]  A. Zaheer,et al.  Bridging ties: a source of firm heterogeneity in competitive capabilities , 1999 .

[19]  E. Bartezzaghi *,et al.  E-sourcing in a buyer-operator-seller perspective: Benefits and criticalities , 2005 .

[20]  Sandy D. Jap An Exploratory Study of the Introduction of Online Reverse Auctions , 2003 .

[21]  Stephan M. Wagner,et al.  Setting the stage for successful electronic reverse auctions , 2004 .

[22]  M. L. Emiliani,et al.  Realizing savings from online reverse auctions , 2002 .

[23]  Andrea Lösch,et al.  E-Reverse Auctions Revisited: An Analysis of Context, Buyer–Supplier Relations and Information Behavior , 2007 .

[24]  Yunsook Hong,et al.  An exploration of the adoption of E-auctions in supply management , 2004, IEEE Transactions on Engineering Management.

[25]  C. Carter,et al.  Electronic reverse auction configuration and its impact on buyer price and supplier perceptions of opportunism: A laboratory experiment , 2007 .

[26]  Wedad Elmaghraby,et al.  Auctions within E‐Sourcing Events , 2007 .

[27]  J. Kagel,et al.  The Winner's Curse and Public Information in Common Value Auctions: Comment , 1999 .

[28]  Vincent A. Mabert,et al.  Implementing reverse e-auctions: A learning process , 2006 .

[29]  Sandy D. Jap Online reverse auctions: Issues, themes, and prospects for the future , 2002 .

[30]  T. Skjøtt-Larsen,et al.  Electronic marketplaces and supply chain relationships , 2003 .

[31]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[32]  Thomas F. Gattiker,et al.  Negotiation, Email, and Internet Reverse Auctions: How Sourcing Mechanisms Deployed by Buyers Affect Suppliers’ Trust , 2007 .

[33]  D. Fortin,et al.  Behavioral outcomes from online auctions: reserve price, reserve disclosure, and initial bidding influences in the decision process , 2005 .

[34]  Paul R. Milgrom,et al.  Auctions and Bidding: A Primer , 1989 .

[35]  Diane H. Parente,et al.  Across the manufacturing‐marketing interface Classification of significant research , 1998 .

[36]  Abraham Seidmann,et al.  Managing Online Auctions: Current Business and Research Issues , 2003, Manag. Sci..

[37]  Ido Millet,et al.  Metrics for Managing Online Procurement Auctions , 2004, Interfaces.

[38]  F. Kelly,et al.  A Combinatorial Auction with Multiple Winners for Universal Service , 2000 .

[39]  X. Koufteros Testing a model of pull production: a paradigm for manufacturing research using structural equation modeling , 1999 .

[40]  Eric van Heck,et al.  How should CIOs deal with Web-based auctions? , 1998, CACM.

[41]  R. Nath,et al.  Business‐to‐business e‐procurement: success factors and challenges to implementation , 2007 .

[42]  M. L. Emiliani,et al.  Sourcing in the global aerospace supply chain using online reverse auctions , 2004 .

[43]  P. Klemperer What Really Matters in Auction Design , 2001 .

[44]  Hila Etzion,et al.  Analyzing the Simultaneous Use of Auctions and Posted Prices for Online Selling , 2006, Manuf. Serv. Oper. Manag..

[45]  Craig R. Carter,et al.  Reverse auctions--grounded theory from the buyer and supplier perspective , 2004 .

[46]  P. Klemperer Auction Theory: A Guide to the Literature , 1999 .

[47]  Madeleine Järsjö,et al.  Purchasing Must Become Supply Management , 2013 .

[48]  Stefan Klein,et al.  Introduction to Electronic Auctions , 1997, Electron. Mark..

[49]  Ido Millet,et al.  A conceptual research framework for analyzing online auctions in a B2B environment , 2004 .

[50]  L. Ellram The Supplier Selection Decision in Strategic Partnerships , 1990 .

[51]  Hokey Min International Supplier Selection , 1994 .

[52]  Ali Hortaçsu,et al.  Winner's Curse, Reserve Prices and Endogenous Entry: Empirical Insights from Ebay Auctions , 2003 .

[53]  Sandy D. Jap The Impact of Online Reverse Auction Design on Buyer–Supplier Relationships , 2007 .

[54]  M. Emiliani,et al.  Wood pallet suppliers' reaction to online reverse auctions , 2005 .

[55]  T. C. Edwin Cheng,et al.  Application of structural equation modeling to evaluate the intention of shippers to use Internet services in liner shipping , 2007, Eur. J. Oper. Res..

[56]  Alok Gupta,et al.  User heterogeneity and its impact on electronic auction market design: an empirical exploration , 2004 .