E-reverse auctions revisited: An analysis of context, buyer-supplier relations and information behavior

Abstract

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. © November 2007, by the Institute for Supply Management, Inc™.