Trusting an auction

Griffiths, Adrian

doi:10.1108/13598540310484582

Cited by 15 publications

(4 citation statements)

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“…Furthermore, the assumptions of some authors (Beall et al 2003; Griffiths 2003) that clear and open communication seems to be major prerequisites for successful e‐RAs can generally be confirmed by the above findings. Given the survey results, the conceptual model of context, information behavior and buyer–supplier relationships shown in Figure 4 emerges.…”

Section: Linkages Between Context and Information Behavior In E‐ra Busupporting

confidence: 71%

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

Lösch

Lambert

2007

J Supply Chain Manag

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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.

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Section: Linkages Between Context and Information Behavior In E‐ra Busupporting

confidence: 71%

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

Lösch

Lambert

2007

J Supply Chain Manag

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“…In addition to price, sourcing professionals rely on assessed value in making purchase decisions (Anderson et al , 2000). As Anderson and Narus (1988, p. 54) wrote, “Value in business markets is the worth in monetary terms of the economic, technical, service, and social benefits a customer firm receives in exchange for the price it pays for a market offering.” Also, “A buyer needs to convince the financial management that prices are the best possible, whilst simultaneously demonstrating to the manufacturing team that quality and delivery are not being compromised” (Griffiths, 2003, p. 190). Assessed value considers competing suppliers'; offering and prices.…”

Section: Methodsmentioning

confidence: 99%

Enhancing reverse auction use theory: an exploratory study

Hawkins

Gravier²,

Wittmann³

2010

Supply Chain Management: An International Journal

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Purpose -The purpose of this paper is to explore how a sourcing professional arrives at a decision to use an electronic reverse auction (eRA) to source a particular requirement by examining eRA appropriateness. Design/methodology/approach -Past eRA research findings are synthesized into a summary table. From a comprehensive review of the literature, theories of technology adoption, social influence, referent-dependence theory, and planned behaviour are discussed and synthesized into a model that explains the antecedents of eRA appropriateness. A case study methodology using structured interviews resulted in a refined model that sheds light on some of the controversial findings regarding electronic reverse auction appropriateness. Findings -Expected savings, buyer confidence, and prior eRA sourcing satisfaction are identified as new constructs that help explain the decision to source via eRAs. Additionally, perceived eRA appropriateness is proposed as a new construct that mediates the influence of external, strategy factors on the decision to source via eRAs. Research limitations/implications -Recent literature suggests that the benefits of reverse auctions are overstated and reverse auctions constitute a fundamentally coercive use of buyer power. Reconciling the conflicting supplier perceptions of reverse auctions as use of coercive power with buyer perceptions of cost savings requires an explanation for the factors that lead to the decision to source via eRAs. Practical implications -The modern competitive supply chain environment entices businesses to explore all avenues for cost savings. Explaining the drivers of reverse auction use illuminates the advantages and pitfalls of reverse auctions as a strategic sourcing venue. Originality/value -From an extensive review of the eRA literature and eight case studies, the authors propose a model that integrates and extends previous eRA research. Key insights from the model are the mediating effect of perceived eRA appropriateness and the integration of individual level variables with the strategic decision to source via eRA. Additionally, a table is provided summarizing the findings from relevant eRA research that reveals key insights into the phenomenon.

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“…To establish trust in online auctions, past research indicates that supply chain managers need to establish some level of trust in the auction maker in order to reduce Managers' trust in online auctions perceptions of risk that arise when participants have little or no direct contact (Griffiths, 2003;Kim and Ahn, 2007). Research by Carter and Kaufmann (2007) and Smith (2008) suggests that supply chain managers may rely on the auction maker's web site to give them indications regarding the auction maker's trustworthiness in order to ameliorate the perceptions of risk associated with the lack of direct contact.…”

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

An assessment of supply chain managers' trust in online auctions

Nadler

Kros²

2010

Industrial Management &Amp; Data Systems

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Purpose -The purpose of this study is to empirically test the levels of trust supply chain managers exhibit regarding online auctions. The study seeks to test the hypotheses that supply chain managers with higher levels of trust in online auctions would exhibit more familiarity with online auctions, more positive relationships with suppliers, stronger focus on cost management, a stronger focus on revenue enhancement, and greater levels of participation. Design/methodology/approach -A review of the extant literature provided the basis for the development of an online pilot study that was e-mailed to 100 supply chain managers. The results of the pilot study were used to develop an online survey instrument that was e-mailed to 2,313 current members of the Council of Supply Chain Management Professionals (CSCMP) and the Institute of Supply Management. A total of 213 usable questionnaires were returned, resulting in a 9.2 percent response rate. Findings -The data were analyzed via t-test, MANOVA and ANOVA. The study indicated that online auction users exhibit high levels of trust in online auctions. The study also found that those with higher levels of familiarity with online auctions, with stronger positive relationships with online auction suppliers, and with stronger focus on cost management also exhibited higher levels of trust in online auctions. Contrary to expectations study findings indicate that higher levels of perceived firm profitability and of online auction participation do not lead to increased levels of trust in online auctions. Practical implications -The study provides a number of important implications. First, it is important for supply chain managers to recognize the important role that trust continues to play in business relationships. Supply chain managers are advised to be cognizant of the fact that some suppliers may be reluctant to participate in online auctions because they fear participation might damage customer relationships that they have spent years cultivating. Finally, supply chain managers are advised to consider the use of online auctions in order to achieve cost management objectives. Originality/value -The research makes an important contribution to the literature because it seeks to assess supply chain managers' level of trust in online auctions and how this impacts on the extent to which they participate in this exchange mechanism. An equally important contribution provided by the research is that it focuses on the level of trust in online auctions in general, whereas the preponderance of past research has focused on reverse or price descending auctions only.

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Trusting an auction

Cited by 15 publications

References 1 publication

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

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

Enhancing reverse auction use theory: an exploratory study

An assessment of supply chain managers' trust in online auctions

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