Especially after the recession, it is of interest whether electronic reverse auctions (eRAs), as e-procurement tool with a high cost saving potential, are attractive for companies. Therefore, the purpose of this study is the investigation of the current eRA adoption and future eRA prospects in terms of extent and way of usage in the Austrian automotive industry. Data were collected from purchasing managers and purchasing agents of 20 companies which belong to the 24 top-selling Austrian automotive companies. Quantitative data was collected from 20 companies regarding the extent of eRA usage. Furthermore, 18 of these participated in semi-structured interviews for qualitative data collection regarding reasons for (not) using eRAs and the way of eRA usage. Results of the data analysis show that the extent of eRA usage is and will remain quite low in the Austrian automotive industry and even adopters’ eRA spending is fairly low. In conclusion, eRAs do not seem to contribute a lot to achieve cost savings in the Austrian automotive industry and are considered to be rather disliked by Aus-trian automotive buyers. Although findings cannot be generalised to the whole Austrian automotive industry they still might have the implication that buyer-supplier cooperation will prevail in the Austrian automotive industry in the future as it obviously contributes more to gain a sustainable competitive supply chain advantage than eRAs. Moreover, if other industries and countries have similar attitudes towards eRAs as Austrian automotive buyers, it might have negative implications on eRA tool providers, though this needs to be investigated in further research.
Table of Contents
1 INTRODUCTION
1.1 BACKGROUND, SUBJECT AND REASONS FOR SUBJECT CHOICE
1.2 RESEARCH OBJECTIVES AND QUESTIONS
1.3 RESEARCH METHODOLOGY
1.4 LIMITATIONS OF THE RESEARCH
1.5 RESEARCH STRUCTURE
2 LITERATURE REVIEW
2.1 PROCUREMENT IN SUPPLY CHAIN MANAGEMENT
2.1.1 e-procurement
2.1.2 e-auctions
2.2 ELECTRONIC REVERSE AUCTIONS
2.2.1 Mode of operation
2.2.2 Benefits and criticisms
2.2.3 Future prospects
2.2.4 Adopters
2.3 THE AUTOMOTIVE INDUSTRY
2.3.1 eRA adoption in the automotive industry
2.3.2 The Austrian automotive industry
3 CONCEPTUAL FRAMEWORK
4 METHODOLOGY
4.1 RESEARCH PURPOSE
4.2 RESEARCH APPROACH
4.3 RESEARCH STRATEGY
4.3.1 Sampling
4.4 DATA COLLECTION METHOD
4.4.1 Primary data collection through a telephone survey and semi-structured interviews
4.5 DATA ANALYSIS
4.5.1 Computer Assisted Qualitative Data Analysis
4.5.2 Data analysis with NVivo
5 FINDINGS, ANALYSIS AND DISCUSSION
5.1 CURRENT EXTENT OF ERA USAGE
5.1.1 Non-adoption reasons and criticisms
5.1.2 Adoption reasons and benefits
5.2 CURRENT WAY OF ERA USAGE
5.2.1 General way of usage
5.2.2 Before the auction
5.2.3 Auction
5.2.4 After the auction
5.3 FUTURE PROSPECTS FOR THE EXTENT OF ERA USAGE
5.4 FUTURE PROSPECTS FOR THE WAY OF ERA USAGE
6 CONCLUSION
6.1 CONCLUSION OF RESEARCH
6.2 RELIABILITY AND VALIDITY
6.3 CONSTRAINTS, LIMITATIONS AND IMPLICATIONS
6.4 FURTHER RESEARCH
Research Objectives and Themes
The primary aim of this dissertation is to investigate the current adoption and future prospects of electronic reverse auctions (eRAs) within the Austrian automotive industry, focusing on both the extent and the methodology of their application.
- Current adoption rate and reasons for non-adoption
- Usage patterns and procurement strategies
- Future intentions for eRA implementation
- Influence of eRAs on buyer-supplier relationships
- Performance impacts, such as cost savings and sourcing efficiency
Excerpt from the Book
2.2 Electronic reverse auctions
Dutch auctions (Teich et al., 2003) are more commonly known as electronic reverse auctions (eRAs) but are also called online reverse auctions (oRA) (Smart and Harrison, 2003) or downward price auctions (Emiliani and Stec, 2002; Kumar and Maher, 2008). They are real-time dynamic bidding events between one buyer and a group of suppliers who compete online via auction software to win a buyer’s business to supply goods or services (Kaufmann and Carter, 2004; Hur et al., 2006; Razuk et al., 2009). Buyers adopt eRAs because they combine benefits of a more efficient sourcing process through reduced sourcing cycle time (Emiliani and Stec, 2002; Parente et al., 2004) and cheaper purchase prices through fostered competition (Jap, 2002; Parente et al., 2004).
Summary of Chapters
1 INTRODUCTION: This chapter defines the research subject, background, objectives, and questions, while providing an introduction to the methodology.
2 LITERATURE REVIEW: A critical review of state-of-the-art literature regarding eRAs, covering their definitions, mechanisms, benefits, criticisms, and potential future prospects.
3 CONCEPTUAL FRAMEWORK: Presents a conceptual model and research propositions deduced from the literature review.
4 METHODOLOGY: Defines the research purpose, approach, strategy, data collection methods, and data analysis procedures used in the study.
5 FINDINGS, ANALYSIS AND DISCUSSION: Introduces the findings from the gathered data and tests the initial research propositions.
6 CONCLUSION: Provides answers to the research questions, inspects validity and reliability, discusses constraints and implications, and presents recommendations for future research.
Keywords
Electronic Reverse Auctions, eRA, Austrian Automotive Industry, Sourcing, Supply Chain Management, e-procurement, Procurement Efficiency, Bidding, Supplier Relationships, Cost Savings, Competitive Advantage, Adoption, Buyer-Supplier Cooperation, Purchasing Strategy, Qualitative Analysis
Frequently Asked Questions
What is the core focus of this research?
The research investigates the current adoption and future prospects of electronic reverse auctions (eRAs) specifically within the Austrian automotive industry, exploring how these tools are integrated into corporate sourcing strategies.
What are the central themes of the work?
Central themes include procurement process efficiency, the impact of eRAs on supplier relationships, cost saving potential, factors influencing adoption, and the comparative analysis of usage patterns between adopters and non-adopters.
What is the primary research objective?
The main objective is to identify to what extent and in what way eRAs are used by Austrian automotive companies, while also analyzing the future potential for this technology within the sector.
Which methodology does the research apply?
The research uses an exploratory approach that combines a deductive and inductive method. It utilizes quantitative data from a telephone survey of 20 companies and qualitative data from 18 semi-structured, in-depth interviews, analyzed using NVivo software.
What topics are covered in the main body?
The main body reviews the literature on e-procurement and auctions, establishes a conceptual framework, details the methodology, and provides a comprehensive analysis of the collected interview data, including findings on current usage, future expectations, and supplier relations.
Which keywords characterize the study?
Key terms include electronic reverse auctions (eRA), Austrian automotive industry, supply chain management, procurement, cost savings, supplier relationships, and e-sourcing strategies.
Why did the study find low adoption rates for eRAs?
The study found low adoption due to preferences for traditional face-to-face negotiations, concerns regarding quality and delivery risks with unknown suppliers, and the belief that eRAs do not facilitate the necessary long-term cooperation for strategic sourcing.
How does the Austrian context influence the results?
The Austrian automotive industry relies heavily on existing supplier relationships and cooperation, which often conflicts with the transactional nature of eRAs. The research highlights that these cultural and operational practices are significant barriers to widespread eRA implementation.
- Quote paper
- Nora Rienhuber (Author), 2010, Current adoption and future prospects of electronic reverse auctions in the Austrian automotive industry, Munich, GRIN Verlag, https://www.grin.com/document/163954
