Exploring the barriers to the adoption of e‐auctions for sourcing

Abstract

Purpose To understand the differences in perceived barriers to e‐auctions both in US buying organizations that have adopted e‐auctions and in both those that have not. Design/methodology/approach Four propositions were developed based on the literature and case studies in eight companies that used e‐auctions for sourcing. Measures were developed for lack of e‐auction knowledge, lack of supplier participation, information security concerns and importance of supplier relationships. Survey data were gathered from 163 US National Association of Purchasing Management members. GLM‐MANOVA was used to test the propositions. Findings E‐auction adopters perceive information security to be less of a concern than non‐adopters. No significant differences were found between adopters and non‐adopters on the buyer's e‐auction knowledge, lack of supplier participation, and the importance of supplier relationships. Research limitations/implications The small sample size limits statistical power, so small differences may not have been detected. The results may not generalize beyond the sample. Practical implications Supply managers should focus on reducing information security concerns within their organizations to facilitate adoption. Originality/value No published studies have explored the differences between adopters and non‐adopters of e‐auctions to identify barriers.