Managerial implications from Indian case studies on e‐reverse auctions

Abstract

Purpose

The purpose of this paper is to investigate e‐reverse auctions (eRA) implementation experiences across a diverse group of firms and sectors in the Indian context, to derive useful insights for theory and practice.

Design/methodology/approach

The paper takes the form of a qualitative multiple case study following direct observation of object reality. The data analysed include written documentation, archival records, physical artifacts and unstructured interviews with key eRA personnel.

Findings

eRA work best in a competitive, high capacity marketplace and are the dominant strategy when the focus is on low search cost per supplier, when the percent reduction over time in the price offered by the current supplier is low and when the product is standardized. The optimum number of bidders is five to ten. Most of the findings are in line with literature but some of them differ too. These will add to academic discourse.

Research limitations/implications

The small sample size and case method approach limits the ability to generalize the findings. The firms were selected as a convenience sample and so may not be truly cross‐sectional. Only analytical generalisation is claimed rather than any statistical generalisation.

Practical implications

eRA improve effectiveness of the sourcing process and facilitate access to new suppliers. They also lead to standardization of sourcing procedures, reduced order cycle, reduced prices and generally higher service levels. This paper will help firms in India and other countries to develop policies, strategies and procedures while implementing eRA.

Originality/value

The paper is perhaps the first on eRA practices in India. The author describes the practices in detail and based on this develops a framework for eRA process and provides detailed and concise guidelines for managers.

Citation

Srivastava, S.K. (2012), "Managerial implications from Indian case studies on e‐reverse auctions", Business Process Management Journal, Vol. 18 No. 3, pp. 513-531. https://doi.org/10.1108/14637151211232687