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The Impact of Electronic Reverse Auctions on Supplier Performance: The Mediating Role of Relationship Variables

The Impact of Electronic Reverse Auctions on Supplier Performance: The Mediating Role of... The use of electronic reverse auctions (ERAs) by buying organizations has increased dramatically over the past five years. Both anecdotal and empirical evidence have shown that ERAs can lower purchase prices. However, researchers are only just beginning to investigate how ERAs impact perceptions of opportunism as compared to sealed bids and traditional negotiations. Further, researchers have yet to examine how perceptions of opportunism surrounding ERAs might in turn affect such outcome variables as trust, commitment, conflict, and ultimately nonprice attributes of supplier performance. The authors address this gap in the research by developing a theoretically grounded model of the interrelationships among these five variables, and empirically testing the model through a survey of buying organizations that rely heavily on ERAs to select and source from suppliers. The authors' findings suggest that increased levels of opportunism harm supplier nonprice performance, through both their more obvious impact on dysfunctional conflict and their more latent effects on relationship trust and commitment. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Supply Chain Management Wiley

The Impact of Electronic Reverse Auctions on Supplier Performance: The Mediating Role of Relationship Variables

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References (118)

Publisher
Wiley
Copyright
Copyright © 2007 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1523-2409
eISSN
1745-493X
DOI
10.1111/j.1745-493X.2007.00024.x
Publisher site
See Article on Publisher Site

Abstract

The use of electronic reverse auctions (ERAs) by buying organizations has increased dramatically over the past five years. Both anecdotal and empirical evidence have shown that ERAs can lower purchase prices. However, researchers are only just beginning to investigate how ERAs impact perceptions of opportunism as compared to sealed bids and traditional negotiations. Further, researchers have yet to examine how perceptions of opportunism surrounding ERAs might in turn affect such outcome variables as trust, commitment, conflict, and ultimately nonprice attributes of supplier performance. The authors address this gap in the research by developing a theoretically grounded model of the interrelationships among these five variables, and empirically testing the model through a survey of buying organizations that rely heavily on ERAs to select and source from suppliers. The authors' findings suggest that increased levels of opportunism harm supplier nonprice performance, through both their more obvious impact on dysfunctional conflict and their more latent effects on relationship trust and commitment.

Journal

Journal of Supply Chain ManagementWiley

Published: Feb 1, 2007

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