Diffusion Of Online Reverse Auctions For B2b Procurement
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Diffusion Of Online Reverse Auctions For B2b Procurement
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Author : Tobias Schoenherr
language : en
Publisher:
Release Date : 2014
Diffusion Of Online Reverse Auctions For B2b Procurement written by Tobias Schoenherr and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
Purpose - To investigate the diffusion of online reverse auctions by exploring differences between their early, late and lagging adopters. More specifically, adopter categories are compared against organizational characteristics and auction behavior as a result of learning. Organizational characteristics include number of employees and purchasing authority structure. Differences in learning are investigated by behavioral manifestations, consisting of the savings achieved, as well as the use of bundles in reverse auctions. Design/methodology/approach - Four hypotheses were developed based on academic and trade literature. Data were collected with a large-scale online survey among members of the Institute for Supply Management (ISM), receiving 363 complete and useable responses. Records were split into three adopter categories based on whether the respondent's firm adopted reverse auctions early (before April 2002) or late (after April 2002), or whether the adoption was merely planned. Differences related to the time of adoption were explored via nonparametric chi-squared contingency table analyses. The chi-square statistic was used to determine whether a hypothesis is supported or rejected. Findings - Adopter categories differ in regards to number of employees, the savings achieved, and their use of bundles. No differences were detected in terms of purchasing authority structure. Explanations for these findings are provided.Practical implications - The results support the diffusion of online reverse auctions, provide encouragement for their adoption especially also by smaller firms, and suggest that late adopters are not disadvantaged when compared to their early-adopting counterparts. Originality/value - No published studies have investigated the diffusion of online reverse auctions for B2B procurement, or explored potential differences between early adopters, late adopters and laggards.
Best Practices For Online Procurement Auctions
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Author : Parente, Diane H.
language : en
Publisher: IGI Global
Release Date : 2007-12-31
Best Practices For Online Procurement Auctions written by Parente, Diane H. and has been published by IGI Global this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007-12-31 with Education categories.
Offers a systematic approach to the examination of online procurement auctions. Growth in online auctions reinforces the need for understanding the factors important in auctions and the caveats that both researchers and practitioners need to know in order to effectively study and use the auction tool.
A Comparison Of Online And Offline Procurement In B2b Markets
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Author : Tobias Schoenherr
language : en
Publisher:
Release Date : 2014
A Comparison Of Online And Offline Procurement In B2b Markets written by Tobias Schoenherr and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
Purchasing professionals in today's business-to-business (B2B) markets can choose between conducting bid solicitations and negotiations using an online or offline process. One dominant type of online procurement has been the online reverse auction, which has received both praise and criticism. However, the choice between an online reverse auction and alternate offline procurement methods cannot be taken lightly. It is the objective of this research to distinguish these two environments and investigate their differences along the dimensions of purchase importance, supply market availability, future orientation and item specification difficulty. Examining these issues from the buyer's perspective, we develop our arguments of procurement choice based on literature in industrial buyer behavior, strategic sourcing, and online reverse auctions; the psychological distance perspective and transaction cost economics serve as theoretical foundations for our hypotheses. Our hypotheses are tested with hierarchical logistic regression analysis using responses from 825 purchasing professionals in the U.S. manufacturing sector. Two of our four main hypotheses are supported, indicating that offline procurement is more likely to be chosen when the purchase is highly important, whereas auctions are the preferred choice as more suppliers become able and willing to participate in the bidding process. No differences were detected between the future orientation of the buyer and the item specification difficulty. Advice is provided to practitioners when reverse auctions are more amenable than offline methods. Contributions to academia include the extension of the literature in industrial buyer behavior and auctions, as well as the theoretical development based on the psychological distance perspective and transaction cost economics.
An Empirical Examination Of Reverse Auction Appropriateness In B2b Source Selection
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Author :
language : en
Publisher:
Release Date : 2006
An Empirical Examination Of Reverse Auction Appropriateness In B2b Source Selection written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with categories.
Electronic reverse auctions (e-RA) are perhaps the most revolutionary development in the procurement arena to date. Their cost-reducing capabilities are unmatched; as such, their use is expected to grow. To optimize their use, sourcing professionals will need to match firm requirements to market characteristics and supplier capabilities through the application of optimal sourcing strategies. To date, explanations for the phenomenon of why sourcing managers decide to utilize reverse auctions are incomplete. This study relies upon strategic sourcing concepts coupled with theories of competition, goal-setting, and leadership to develop a conceptual model of antecedents to appropriateness of e-RA usage. The model is tested and supported via structural equations modeling. Managerial implications and future research directions are identified.
E Logistics And E Supply Chain Management
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Author : Deryn Graham
language : en
Publisher: IGI Global
Release Date : 2013-04-30
E Logistics And E Supply Chain Management written by Deryn Graham and has been published by IGI Global this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-04-30 with Business & Economics categories.
"This book explores the creation of integrated supply chains, the developments of virtual business, and the processes of re-engineering for business development"--Provided by publisher.
Online Reverse Auctions For Procurement Of Services
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Author : Uladzimir Leanidavich Radkevitch
language : en
Publisher:
Release Date : 2008
Online Reverse Auctions For Procurement Of Services written by Uladzimir Leanidavich Radkevitch and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with categories.
Online Reverse Auctions And The Buyer Supplier Relationship
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Author : Thomas G. Parker
language : en
Publisher:
Release Date : 2010
Online Reverse Auctions And The Buyer Supplier Relationship written by Thomas G. Parker and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.
Industrial online-reverse-auctions have become a common procurement strategy used by many firms to reduce the cost of purchased goods and services. The advantages of online-reverse-auctions include significant price reductions, increased purchasing and selling efficiencies, and access to new supply and purchasing markets. Despite these benefits, practitioners and academics alike have raised concerns with respect to the impact of online-reverse-auctions on the buyer-supplier relationship. Previous research suggests that the parameters and characteristics of an online-reverse-auction can influence the perceptions of online-reverse-auction participants. This dissertation investigates this phenomenon by examining how the design of an online-reverse-auction influences the supplier's perception of the buyer-supplier relationship.
Internet Reverse Auctions
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Author : Vincent A. Mabert
language : en
Publisher:
Release Date : 2002
Internet Reverse Auctions written by Vincent A. Mabert and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2002 with Electronic commerce categories.
In a dynamic global economy, effectively managing the procurement process to help cut costs is critical to long-term success. Many firms have recently adopted Internet-based reverse auction tools and techniques for purchasing materials and services from their suppliers. In a reverse auction, the buyer takes on the role of seller by advertising its intent to purchase a specific quantity of an item or service, and providers bid for the business. As a result, prices descend rather than ascend as they would in a traditional auction. Reaction to the concept has been mixed, including both spectacular statements of success and concerns about applicability to the total procurement function. The authors present actual case studies that illustrate the tasks required to conduct a reverse auction, the third-party aid available, and the potential benefits.
Online Reverse Auction Procurement With Flexible Noncompetitive Contracts
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Author : Nianbing Zhang
language : en
Publisher:
Release Date : 2008
Online Reverse Auction Procurement With Flexible Noncompetitive Contracts written by Nianbing Zhang and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with Industrial procurement categories.
E Sourcing In Procurement
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Author : Richard Engelbrecht-Wiggans
language : en
Publisher:
Release Date : 2005
E Sourcing In Procurement written by Richard Engelbrecht-Wiggans and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with categories.
One of the goals of procurement is to establish a fair price while affording the buyer some flexibility in selecting the suppliers to deal with. Reverse auctions do not have this flexibility, because it is the auction rules and not the buyer that determine the winner. But an important advantage of having this flexibility is that it allows buyers and suppliers to establish long-term relationships. This is one of the reasons that buyers often combine non-competitive purchasing with auctions. We find that in theory such hybrid mechanisms that remove some suppliers and a corresponding amount of demand from the auction market increase competition and make buyers better off as long as suppliers are willing to accept non-competitive contracts. And it turns out that suppliers often do because under a wide variety of conditions these contracts have a positive expected profit. Our theory relies on two behavioral assumptions: (1) bidders in a multi-unit uniform-price reverse auction will follow the dominant strategy of bidding truthfully, and (2) the suppliers who have been removed from the market will accept non-competitive contracts that have a positive expected profit. Our experiment demonstrates that bidders in the auction behave very close to following the dominant strategy regardless of whether this auction is a stand-alone or a part of a hybrid mechanism. We also find that suppliers accept non-competitive contracts sufficiently often (although not always) to make the hybrid mechanism outperform the reverse auction in the laboratory as well as in theory.