An empirical examination of reverse auction appropriateness in B2B source selection
Hawkins, Timothy G.
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Electronic reverse auctions (e-RA) are perhaps the most revolutionary development in the procurement arena to date. Their cost-reducing capabilities are unmatched; as such, their use is expected to grow. To optimize their use, sourcing professionals will need to match firm requirements to market characteristics and supplier capabilities through the application of optimal sourcing strategies. To date, explanations for the phenomenon of why sourcing managers decide to utilize reverse auctions are incomplete. This study relies upon strategic sourcing concepts coupled with theories of competition, goal-setting, and leadership to develop a conceptual model of antecedents to appropriateness of e-RA usage. The model is tested and supported via structural equations modeling. Managerial implications and future research directions are identified.