Executive decision‐making traps and B2B online reverse auctions

Abstract

Purpose

The purpose of the paper is to describe common decision‐making traps experienced by senior managers when considering the use of online reverse auctions as a means for sourcing goods and services and to reduce purchase prices.

Design/methodology/approach

The paper examines the information evaluated and decision‐making process used by senior managers in relation to common decision‐making traps.

Findings

Decision‐making traps are shown to lead to poor decisions related to the use of online reverse auctions.

Research limitations/implications

Exceptions to observations and findings presented may exist. The paper provides a foundation for further investigation on how strategic sourcing processes are evaluated and selected by senior managers.

Practical implications

The paper is useful for managers as a guideline to evaluate sourcing options and avoid errors that can interrupt supply, reduce product or service quality, extend lead times, increase costs, or impair buyer‐seller relationships. It is helpful for academics to understand industrial decision‐making processes regarding the evaluation of sourcing options.

Originality/value

The paper explains decision‐making traps and provides the rationale for their existence in decisions to use online reverse auctions.

Citation

Emiliani, M.L. (2006), "Executive decision‐making traps and B2B online reverse auctions", Supply Chain Management, Vol. 11 No. 1, pp. 6-9. https://doi.org/10.1108/13598540610642411