Innovation and B2B E-Commerce

2011 ◽  
pp. 41-61
Author(s):  
Steve New
Keyword(s):  
Empirical Study ◽  
Real Time ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Fundamental Transformation ◽  
Business To Business ◽  
Online Reverse Auctions ◽  
Dot Com ◽  
Industrial Capacity

The massive wave of enthusiasm for B2B (business-to-business) e-commerce generated with the “dot-com” boom led many to believe that a fundamental transformation of how firms bought and sold products was just around the corner. The new “wired” world of commerce would lead to real-time, Internet-driven trading, with significant implications for — amongst other things — the nature of buyer-supplier relationships, pricing, and the management of industrial capacity. Despite the excitement, such a transformation has largely failed to materialise, and whilst there has been a limited uptake of B2B innovations (for example, the use of online reverse auctions), the fundamental character of B2B trade has remained mostly unchanged. Drawing on a multi-stranded empirical study, this chapter seeks to explain the divergence between the expected and realised degrees of innovation.

Innovation and B2B E-Commerce

2011 ◽  
pp. 1936-1952
Author(s):  
Steve New
Keyword(s):  
Empirical Study ◽  
Real Time ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Fundamental Transformation ◽  
Business To Business ◽  
Online Reverse Auctions ◽  
Dot Com ◽  
Industrial Capacity

The massive wave of enthusiasm for B2B (business-to-business) e-commerce generated with the “dot-com” boom led many to believe that a fundamental transformation of how firms bought and sold products was just around the corner. The new “wired” world of commerce would lead to real-time, Internet-driven trading, with significant implications for — amongst other things — the nature of buyer-supplier relationships, pricing, and the management of industrial capacity. Despite the excitement, such a transformation has largely failed to materialise, and whilst there has been a limited uptake of B2B innovations (for example, the use of online reverse auctions), the fundamental character of B2B trade has remained mostly unchanged. Drawing on a multi-stranded empirical study, this chapter seeks to explain the divergence between the expected and realised degrees of innovation.

Innovation and B2B E-Commerce

2009 ◽  
pp. 245-262
Author(s):  
Steven New
Keyword(s):  
Empirical Study ◽  
Real Time ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Fundamental Transformation ◽  
Business To Business ◽  
Online Reverse Auctions ◽  
Dot Com ◽  
Industrial Capacity

The massive wave of enthusiasm for B2B (business- to-business) e-commerce generated with the “dot-com” boom led many to believe that a fundamental transformation of how firms bought and sold products was just around the corner. The new “wired” world of commerce would lead to real-time, Internet-driven trading, with significant implications for — amongst other things — the nature of buyer-supplier relationships, pricing, and the management of industrial capacity. Despite the excitement, such a transformation has largely failed to materialise, and whilst there has been a limited uptake of B2B innovations (for example, the use of online reverse auctions), the fundamental character of B2B trade has remained mostly unchanged. Drawing on a multi-stranded empirical study, this chapter seeks to explain the divergence between the expected and realised degrees of innovation.

An Exploratory Study of the Introduction of Online Reverse Auctions

2003 ◽  
Vol 67 (3) ◽  
pp. 96-107 ◽  
Author(s):  
Sandy D. Jap
Keyword(s):  
Exploratory Study ◽  
Price Competition ◽  
Cost Savings ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Sealed Bid ◽  
Sealed Bid Auctions ◽  
Online Reverse Auctions ◽  
Quasi Experiment

Buyers are increasingly turning to online reverse auctions in their negotiations with suppliers. How do these price competition mechanisms affect buyer–supplier relationships? The author considers this question in the context of a quasi experiment involving six online reverse auctions conducted in the supply base of a major industrial buyer. The results indicate that these auctions increase both new and current suppliers’ beliefs that buyers act opportunistically, particularly in open-bid auctions. Current suppliers are generally more willing than new suppliers to make dedicated investments toward the buyer. Paradoxically, in sealed-bid auctions, both current and new suppliers increase their willingness to make dedicated investments toward the buyer. Although these auctions can yield cost savings, the savings are category specific and are not systematically related to an open- or sealed-bid format. The author also discusses implications for the use of online reverse auctions in industrial sourcing activities.

The Purchasing Agent's View of Online Reverse Auctions

2009 ◽  
pp. 1929-1942
Author(s):  
Peggy D. Lee
Keyword(s):  
Success Factors ◽  
Negative Impact ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Critical Success ◽  
High Level ◽  
Online Reverse Auctions ◽  
Supplier Relationship

This chapter views online reverse auctions from the purchasing agent’s perspective. I found that purchasing agents with a high level of buying experience will perceive that online reverse auctions have a negative impact on the trust and cooperation in supplier relationships. Purchasing agents did not see a negative impact of online reverse auctions on long term viability of suppliers. The chapter discusses the evolution of the buyer-supplier relationship, emphasizing the critical success factors in supplier selection. Further, it discusses the role of the online reverse auction in the buyer-supplier relationship. By understanding the lens through which purchasing agents view online reverse auctions, managers can do a better job of managing the procurement function through improved training programs for purchasing agents that incorporate the appropriateness of online reverse auctions vs. other sourcing strategies. In addition, they will be able to better manage online reverse auctions, minimizing any negative impact of the auction on existing supplier relationships.

Innovation and B2B E-Commerce

2011 ◽  
pp. 92-111
Author(s):  
Steve New
Keyword(s):  
Real Time ◽  
The Internet ◽  
Disruptive Technology ◽  
Fundamental Change ◽  
Supplier Relationships ◽  
The Face ◽  
The Way ◽  
Industrial Capacity

B2B E-commerce was expected to change the way buyers and sellers did business. In the face of the dot.com boom, many believed that this would be a fundamental change in business. Many expected that the internet as a disruptive technology would lead to real-time internet-based trading with implications for changes in the nature of buyer-supplier relationships, pricing, and industrial capacity.

The Purchasing Agent's View of Online Reverse Auctions

2011 ◽  
pp. 28-42
Author(s):  
Peggy D. Lee
Keyword(s):  
Success Factors ◽  
Negative Impact ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Critical Success ◽  
High Level ◽  
Online Reverse Auctions ◽  
Supplier Relationship

This chapter views online reverse auctions from the purchasing agent’s perspective. I found that purchasing agents with a high level of buying experience will perceive that online reverse auctions have a negative impact on the trust and cooperation in supplier relationships. Purchasing agents did not see a negative impact of online reverse auctions on long term viability of suppliers. The chapter discusses the evolution of the buyer-supplier relationship, emphasizing the critical success factors in supplier selection. Further, it discusses the role of the online reverse auction in the buyer-supplier relationship. By understanding the lens through which purchasing agents view online reverse auctions, managers can do a better job of managing the procurement function through improved training programs for purchasing agents that incorporate the appropriateness of online reverse auctions vs. other sourcing strategies. In addition, they will be able to better manage online reverse auctions, minimizing any negative impact of the auction on existing supplier relationships.

An Empirical Study of Collusion Potential Metrics and their Impact on Online Reverse Auction Success

2011 ◽  
pp. 230-246
Author(s):  
Srabana Gupta ◽  
Indranil Ghosh ◽  
Ido Millet
Keyword(s):  
Regression Analysis ◽  
Supply Chain ◽  
Empirical Study ◽  
Cost Savings ◽  
Procurement Auction ◽  
Auction Market ◽  
Bidder Behavior ◽  
The Cost ◽  
Business To Business ◽  
Online Reverse Auctions

This chapter studies the effect of bidder conduct on auction success by examining a business to business (B2B) online procurement auction market. In particular, it investigates if collaborative bidding is more likely when suppliers compete with each other on multiple auctions and/or over a longer period of time. Multiple regression analysis confirms that in online reverse auctions, winning bids are higher or auction success is lower when the same set of suppliers bid against each other regularly. In a supply chain framework, existence of such collaborative bidder behavior would reduce the cost savings for the buyer. It is therefore important for the practitioners to be alert to such activities and introduce measures that curtail the resulting costly outcomes.

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