| The overall goal of this research was to develop and empirically test a model of the reverse auction process. Several factors impacting the use of reverse auctions and three key outcomes of the process were explored. Specifically, this research examined the impact of the firm's corporate and e-purchasing strategies, purchase type, and relative strategic importance of the buyer-supplier relationship on reverse auction implementation. In addition, potential outcomes of the process, including the reduction in purchase price, purchaser productivity, and supplier cooperation were examined.; Building on previous research in the areas of purchasing/supply management and strategic management, 27 hypotheses were developed. The hypotheses were tested using a sample of 142 purchasing professionals employed in diverse industries ranging from automotive manufacturing to pharmaceuticals.; Various statistical procedures including bi-variate correlations, t-tests, as well as simple, multiple, and hierarchical regression revealed a number of significant relationships. Support was found for the relationship between purchase type and reverse auction application as well as each of the model outcomes; reduction in purchase price, purchaser productivity, and supplier cooperation. The data did not provide support for the relationship between a firm's e-purchasing strategy and the various aspects of reverse auction implementation (frequency, breadth, and application) nor for relative strategic importance of the buyer-supplier relationship as a moderator of the relationship between e-purchasing strategy and reverse auction implementation.; Despite the fact that reverse auction use is expected to increase in prevalence, very little empirical research has been conducted in this area. This research addressed some of the gaps in the purchasing/supply management literature by providing a theoretical foundation for understanding the process. In addition it contributes to the body of knowledge currently available to practitioners. |
