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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.

Purpose -The study aims to explore information behaviour and its potential impact on buyer-supplier relationships in electronic reverse auction (e-RA). In spite of the widely assumed benefits of e-RAs, recent studies have identified negative effects of e-RAs on buyer-supplier relationships. Design/methodology/approach -The research is based on nine interviews with automotive buyers and suppliers who use e-RAs and 15 interviews with automotive companies who do not use e-RAs. The interviews were analysed using the method of content analysis. The analysis process was supported relying on the qualitative software package Atlas/ti. Findings -Overall, the results indicate that differences in information behaviour may affect buyer-supplier relationships. Particularly the inadequate treatment of suppliers and the reduced quality of the communication proved to be the major mediating factors for negative outcomes. Also, the use of e-RAs is believed not to be as widespread as generally assumed. Research limitations/implications -Considering the limited scope of this research, further investigation of the above topic is required incorporating several sources of data, e.g. as part of a case study approach. Also, the generalisability of the results might be improved by obtaining responses from more buyers and suppliers through a larger scale survey. Practical implications -The paper suggests that the adequate consideration of context and the careful preparation of the event including strictly equal treatment of all participants and effective communication are key factors for obtaining benefits from e-RAs. Originality/value -Considering the limited evidence on how specific characteristics may affect buyer-seller relations, this research provides a first step in opening up the e-RA "black box".

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