The impact of electronic reverse auctions on supplier performance: The mediating role of relationship variables

Craig Carter, Lutz Kaufmann

Research output: Contribution to journalArticle

26 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)16-26
Number of pages11
JournalJournal of Supply Chain Management
Volume43
Issue number1
DOIs
StatePublished - Dec 2007
Externally publishedYes

Fingerprint

Testing
Electronic reverse auctions
Supplier performance
Opportunism
Empirical evidence
Bid
Purchase
Suppliers
Interrelationship

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)

Cite this

The impact of electronic reverse auctions on supplier performance : The mediating role of relationship variables. / Carter, Craig; Kaufmann, Lutz.

In: Journal of Supply Chain Management, Vol. 43, No. 1, 12.2007, p. 16-26.

Research output: Contribution to journalArticle

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