E-Reverse Auctions Revisited: An Analysis of Context, Buyer–Supplier Relations and Information Behavior

SUMMARY This study investigates context, information behavior and buyer–supplier relationships in e-reverse auctions (e-RAs). Following a grounded theory approach, a comprehensive online questionnaire was developed and sent to both users and nonusers of e-RAs. Usable responses were received from 89 buyers and 54 suppliers that were analyzed taking into account both the size and consistency of effects obtained from the Mann–Whitney U-test and Kendall's tau (τ) statistic. The results not only show that e-RAs have fewer negative effects on buyer–supplier relationships than currently assumed but also that the management of e-RAs (particularly a high valuation of types and sources of information combined with a high quality of information exchange and communication) has a positive impact on the buyer–supplier relationship.

[1]  James R. Brown,et al.  Interdependency, Contracting, and Relational Behavior in Marketing Channels: , 1996 .

[2]  M. Emiliani,et al.  Aerospace parts suppliers’ reaction to online reverse auctions , 2004 .

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

[4]  Thomas J. Callahan,et al.  Value of Supplier Information in the Decision Proces , 1992 .

[5]  Sandy D. Jap,et al.  Control Mechanisms and the Relationship Life Cycle: Implications for Safeguarding Specific Investments and Developing Commitment , 2000 .

[6]  Neil Eldin,et al.  Reverse Auctions: Controversial Bidding Practice , 2005 .

[7]  T. D. Wilson,et al.  Models in information behaviour research , 1999, J. Documentation.

[8]  David Kaye,et al.  Sources of information, formal and informal , 1995 .

[9]  Marjolein C. J. Caniëls,et al.  Purchasing strategies in the Kraljic matrix—A power and dependence perspective , 2005 .

[10]  Joseph P. Cannon,et al.  Buyer–Seller Relationships in Business Markets , 1999 .

[11]  W. C. Benton,et al.  Vendor selection criteria and methods , 1991 .

[12]  Paul D. Cousins,et al.  Beyond vendor assessment: Relationship assessment programmes , 1996 .

[13]  Ulli Arnold,et al.  Target-oriented use of strategic sourcing tools: A critical analysis creating process awareness for electronic reverse auctions , 2005 .

[14]  Jacob Cohen,et al.  A power primer. , 1992, Psychological bulletin.

[15]  James T. Simpson,et al.  Buyer-seller relationships in the wood products industry , 1997 .

[16]  Robert E. Spekman Perceptions of strategic vulnerability among industrial buyers and its effect on information search and supplier evaluation , 1988 .

[17]  Neeraj Bharadwaj,et al.  Investigating the antecedents and outcomes of customer firm transaction cost savings in a supply chain relationship , 2006 .

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

[19]  Adrian Griffiths Trusting an auction , 2003 .

[20]  M. Sirgy,et al.  Reducing buyer decision-making uncertainty in organizational purchasing: can supplier trust, commitment, and dependence help? , 2005 .

[21]  Alan Harrison,et al.  Online reverse auctions and their role in buyer–supplier relationships , 2003 .

[22]  Leyland Pitt,et al.  Norms and power in marketing relationships: Alternative theories and empirical evidence , 2003 .

[23]  M. L. Emiliani,et al.  Regulating B2B online reverse auctions through voluntary codes of conduct , 2005 .

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

[25]  Shankar Ganesan Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[26]  Craig R. Carter,et al.  Purchasing Auctions - A Synthesis of Current Research , 2004 .

[27]  Craig R. Carter,et al.  Deciding on the Mode of Negotiation: To Auction or Not to Auction Electronically , 2004 .

[28]  Rana Tassabehji,et al.  Reverse e‐auctions and supplier‐buyer relationships: an exploratory study , 2006 .

[29]  C. M. Sashi,et al.  The role of Internet auctions in the expansion of B2B markets , 2002 .

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

[31]  Michelle D. Lane,et al.  Exploring the barriers to the adoption of e‐auctions for sourcing , 2006 .

[32]  Robert E. Spekman,et al.  Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques , 1994 .

[33]  Xian‐zhong Xu,et al.  Building market intelligence systems for environment scanning , 1995 .

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

[35]  J. R. Carter,et al.  The Impact of Interorganizational Alliances in Improving Supplier Quality , 1994 .

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

[37]  C. Carter,et al.  Relationship Marketing and Supplier Logistics Performance: An Extension of the Key Mediating Variables Model , 2005 .

[38]  Geoffrey Hagelaar,et al.  Coordinating collaborative joint efforts with suppliers: the effects of trust transaction specific investment and information network in the Dutch flower industry , 2006 .

[39]  M. Frohlich,et al.  FreeMarkets and Online Auctions , 2001 .

[40]  Prithwiraj Nath,et al.  Reverse auctions for relationship marketers , 2005 .

[41]  P. Miranda,et al.  INCORPORATING INVENTORY CONTROL DECISIONS INTO A STRATEGIC DISTRIBUTION NETWORK DESIGN MODEL WITH STOCHASTIC DEMAND , 2004 .

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

[43]  S. Helper How much has realliy changed between U.S. automakers and their suppliers , 1991 .

[44]  T. D. Wilson,et al.  On user studies and information needs , 2006, J. Documentation.

[45]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[46]  J. Hanna,et al.  Supply chain consortia: the rise of transcendental buyer–supplier relationships , 1999 .

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

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

[49]  Jyrki Wallenius,et al.  Multiple-issue auction and market algorithms for the world wide web , 1999, Decis. Support Syst..

[50]  V. Lo,et al.  Development of a case based intelligent supplier relationship management system – linking supplier rating system and product coding system , 2004 .