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Towards an e-Government efficiency agenda: the impact of information and communication behaviour on e-Reverse auctions in public sector procurement

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European Journal of Information Systems

Abstract

The research in this paper explores how the general context and management information and communication behaviour in electronic Reverse Auctions (e-RAs) may impact on organizational efficiency to ensure procurement excellence. There is evidence that e-RAs improve procurement success by achieving considerable price reductions of externally sourced goods through direct, real-time and transparent competition between suppliers. This paper investigates the conditions for the successful adoption of e-RAs in the U.K. public sector generally and Welsh Unitary Authorities (WUAs) in particular. The research illustrates how e-RAs can support the procurement function and thus, can contribute to organizational efficiency in the context of electronic government (e-Government). A national U.K. survey and an exploratory case analysis in a WUA (Conwy) were undertaken to determine the conditions for the e-RA process. The findings underline the critical importance of the adequate preparation of the e-RA through appropriate information and communication behaviour. Consequently, the paper identifies a set of enabling factors and corresponding guidelines that could be used for the successful adoption of e-RAs in the public sector. The contribution of the research will be of benefit to both academics and practitioners engaged in procurement research and implementation.

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Author information

Authors and Affiliations

  1. Brunel University, Business School, Oxbridge, UB83PH, Middlesex, U.K.

    Ray Hackney

  2. Conwy County Borough Council, Wales, U.K.

    Steve Jones

  3. Manchester Metropolitan University, Geoffrey Manton Building, Manchester, M15 6LL, U.K.

    Andrea Lösch

Authors
  1. Ray Hackney
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  2. Steve Jones
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  3. Andrea Lösch
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Corresponding author

Correspondence to Ray Hackney.

Appendix

Appendix

Survey questions

Context (see Table 1)

Please characterize the products in this event along the following dimensions (Scale: 1=‘Low’ to 3=‘High’):

  • Complexity

  • Strategic importance

  • Spend volume

  • Quantity/order size

For this event, your organization had (Scale 1 to 3 – tick appropriate box):

  • 1=No alternative suppliers

  • 2=0–4 alternative suppliers

  • 3=More than 4 alternative suppliers

Buyer–supplier relationship (see Table 2)

Please indicate to what extent you agree with the following statements (Scale: 1=‘Strongly Disagree’ to 4=‘Strongly Agree’):

  • We are very committed to X

  • We trust X very much

  • We are very dependent on X

  • We have invested a substantial amount of time, energy and/or money in our relationship with X

  • We expect our relationship with X to continue for a long time (3 years or longer)

  • We are very satisfied with our relationship to X

  • Our relationship to X has been a very successful one

  • We have significant disagreements in our relationship with X

Importance of different types of information (see Table 3)

Please indicate how important it was for your company to have the following kinds of information about X (Scale: 1=‘Not Important’ to 5=‘Extremely Important’):

  • [Types of information displayed in Table 3]

Frequency of media use for exchanging information (see Table 4)

Please indicate how often your organization used the following communication methods to exchange information with X (Scale: 1=‘Never’ to 4=‘Practically every day’):

  • [Different media displayed in Table 4]

Perceived quality of information exchange and communication (see Table 5)

Please indicate to what extent you would agree with the following statements regarding the information obtained from X (Scale: 1=‘Strongly Disagree’ to 4=‘Strongly Agree’): The information was

  • Very accurate

  • Very reliable

  • Very useful

Please indicate to what extent you agree with the following statements describing the information exchange and communication between your organization and supplier X (Scale: 1=‘Strongly Disagree’ to 4=‘Strongly Agree’):

  • We would both share confidential information.

  • We would keep each other fully informed about event or changes that may affect our business.

  • Suggestions by the other party were encouraged and welcome.

  • We were always available to X in case they had questions.

  • We were frank and open with each other.

  • The information exchange between X and us can best be described as timely.

  • The overall communication between X and us was very good.

Importance of various decision criteria (see Table 6)

Please indicate how important the following supplier characteristics were for your organization's decision to source from supplier X (Scale: 1=‘Not Important’ to 5=‘Extremely important’):

  • Delivery

  • Price

  • Service

  • Past experience

  • Claims and warranties

  • Quality

  • Location

  • Technological capability

  • Supplier's financial situation

The complete online version of the questionnaire can be accessed at http://www.ico-trg.mmu.ac.uk/andrea/buyer/.

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Hackney, R., Jones, S. & Lösch, A. Towards an e-Government efficiency agenda: the impact of information and communication behaviour on e-Reverse auctions in public sector procurement. Eur J Inf Syst 16, 178–191 (2007). https://doi.org/10.1057/palgrave.ejis.3000677

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  • DOI: https://doi.org/10.1057/palgrave.ejis.3000677

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