Electronic Reverse Auctions: Changing the balance of power from suppliers to buyers?

Donna M. Charlesworth, Brian Jeffery, Gerry Urwin*

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review

Abstract

This exploratory study investigates whether Electronic Reverse Auctions (ERAs) cause a 'power shift' from suppliers to buyers. It is important to develop greater understanding of this emerging issue in ERA literature in order that procurement professionals can benefit from ERA application. A review of the literature identifies bargaining power determinants, forming the basis of a conceptual model. The research explores the balance of power in sourcing processes that utilize ERAs and evaluates the degree to which the power balance is attributable to ERA. Two contrasting case studies, are developed these suggest that ERAs have the potential to increase the power of buying organizations, relative to suppliers, in the sourcing process.

Original languageEnglish
JournalACIS 2005 Proceedings - 16th Australasian Conference on Information Systems
Publication statusPublished - 2005
Event16th Australasian Conference on Information Systems, ACIS 2005 - Sydney, NSW, Australia
Duration: 29 Nov 20052 Dec 2005

Keywords

  • Electronic Reverse Auctions
  • Procurement

ASJC Scopus subject areas

  • Information Systems

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