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Reverse Auctions or Auctions Reversed:: First Experiments by Philips

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  • Van Tulder, Rob
  • Mol, Michael

Abstract

The electronic auction is one of the most highly-promoted forms of B2B e-commerce. However, since the e-commerce bubble burst, the effectiveness of this tool is in question. This article looks at how electronic auctions can be affected by various trade-offs in sourcing strategy. Using the case of an auction by Philips, it is shown that firms still mostly have to deal with the same tensions. Even when auctions are used, regional sourcing strategies rather than global ones are the norm for most European firms. To be effective, electronic auctions should be used as part of a wider strategy, and appropriate selection criteria should be set up in advance.

Suggested Citation

  • Van Tulder, Rob & Mol, Michael, 2002. "Reverse Auctions or Auctions Reversed:: First Experiments by Philips," European Management Journal, Elsevier, vol. 20(5), pages 447-456, October.
    • Handle: RePEc:eee:eurman:v:20:y:2002:i:5:p:447-456
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    Citations

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    Cited by:

    1. Chang, Shih-Chi, 2007. "Reverse electronic auctions: Cases in Taiwan's high-tech industry," Technology in Society, Elsevier, vol. 29(4), pages 490-496.
    2. Radkevitch, U.L. & van Heck, H.W.G.M. & Koppius, O.R., 2008. "Choosing between Auctions and Negotiations in Online B2B Markets for IT Services: The Effect of Prior Relationships and Performance," ERIM Report Series Research in Management ERS-2008-004-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    3. Hazra, Jishnu & Mahadevan, B., 2006. "Impact of supply base heterogeneity in electronic markets," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1580-1594, November.
    4. Jiang, Bin & Reinhardt, Gilles & Young, Scott T., 2008. "BOCOG's outsourcing contracts: The vendor's perspective," Omega, Elsevier, vol. 36(6), pages 941-949, December.
    5. Goebel, Philipp & Reuter, Carsten & Pibernik, Richard & Sichtmann, Christina, 2012. "The influence of ethical culture on supplier selection in the context of sustainable sourcing," International Journal of Production Economics, Elsevier, vol. 140(1), pages 7-17.
    6. Yu, Ya-wen & Yu, Hsiao-Cheng & Itoga, Holly & Lin, Tyng-Ruu, 2008. "Decision-making factors for effective industrial e-procurement," Technology in Society, Elsevier, vol. 30(2), pages 163-169.
    7. Bin Jiang, 2009. "Implementing Supplier Codes of Conduct in Global Supply Chains: Process Explanations from Theoretic and Empirical Perspectives," Journal of Business Ethics, Springer, vol. 85(1), pages 77-92, March.
    8. Mohamed Charki & Emmanuel Josserand & Nabila Charki, 2011. "Toward an Ethical Understanding of the Controversial Technology of Online Reverse Auctions," Journal of Business Ethics, Springer, vol. 98(1), pages 17-37, January.

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