Trusted operational scenarios - Trust building mechanisms and strategies for electronic marketplaces.

This document presents and describes the trusted operational scenarios, resulting from the research and work carried out in Seamless project. The report presents identified collaboration habits of small and medium enterprises with low e-skills, trust building mechanisms and issues as main enablers of online business relationships on the electronic marketplace, a questionnaire analysis of the level of trust acceptance and necessity of trust building mechanisms, a proposal for the development of different strategies for the different types of trust mechanisms and recommended actions for the SEAMLESS project or other B2B marketplaces.trust building mechanisms, trust, B2B networks, e-marketplaces

Online Dispute Resolution

[À l'origine dans / Was originally part of : CRDP - Droit et technologies d'information et de communication]SSHR

Identification and realisation of the benefits of participating in an electronic marketplace : An interpretive evaluation approach

Electronic marketplaces have proliferated as use of the Internet has become widespread in business. A rapid growth in the number of marketplaces, followed by a period of stringent consolidation, as market makers develop a greater understanding of effective business models, has resulted in a climate of uncertainty and confusion. As with many aspects of e-commerce the drive towards participation is fuelled less by strategy planning than by a fear of lagging behind competitors or losing first mover advantage. In this climate of uncertainty organisations often bypass effective evaluation of the benefits that can be realised from participation in e-marketplaces, thereby exacerbating the process facing them and hampering effective decision-making. Evaluation is perceived as a fraught subject within the Information System field, and particularly within the business community which adheres to tried and trusted, albeit often inappropriate, methods such as financial or technical evaluation. The difficulties involved in effective evaluation of systems are well documented; these will increase as systems become more pervasive throughout organisations and those of their trading partners. Calls for a more holistic approach to evaluation are increasing, based on a developing appreciation of interpretive methods of research within the Information Systems discipline. However, the understanding that the social, political and cultural factors affecting and organisation have an impact on the uses and advantages of systems is by no means universal, and empirical evidence of this view is only slowly emerging. This research examines the benefits that can be realised from participation in an electronic marketplace by taking an interpretive approach to the evaluation. It examines the nature of electronic marketplaces to provide clarity to a confused and dynamic environment. The study then focuses on the development of evaluation studies within the IS discipline to identify how an effective evaluation method for assessing the benefits of e-marketplace participation can be achieved. An empirical examination of an organisation’s participation in an electronic marketplace is used to identify the benefits that are realisable and the issues that impact on them. The case study is conducted through an interpretive lens, using a content, context, process (CCP) approach based on existing IS literature. This enables a crucial understanding of the internal and external environments influencing the organisation and its realisation of potential benefits. To allow for the range of interpretations and reflections required to fully address the complexity of the issues involved in such a case study, a variety of research influences such as dialect hermeneutics, critical realism and case study theory are drawn into the research model. The case study organisation’s motivation for participating in an e-marketplace was primarily cost savings. Over the two years of the study, several more potential benefits were identified, such as supply chain efficiencies, greater market awareness and a widening of the supplier base. However, the organisation’s commitments to its local and regional communities, its need to retain status and some consideration of existing relationships needed to be balanced against the gains that might be realised. In some cases the organisation chose to forgo a potential benefit in favour of socially or politically motivated actions. Cultural factors also influenced their actions, particularly as they moved towards extending participation in the marketplace to gain from a global sourcing strategy. The contribution of this research lies in two areas. Firstly, it was existing evaluation literature to development a framework for the evaluation of benefits in the complex area of electronic marketplaces, thereby extending and informing the call for more inclusive and interpretive evaluation studies. Secondly, the research contributes empirical evidence to support the recognition of benefits to be gained from electronic marketplaces and shows how the realisation of the economic benefits is impacted by the social, political and cultural factors that influence an organisation

Online Reverse Auctions for Procurement of Services

Online reverse auctions, in which a buyer seeks to select a supplier and suppliers compete for contracts by bidding online, revolutionized corporate procurement early this century. Shortly after they had been pioneered by General Electric, many companies rushed to adopt reverse auctions but the adoption soon slowed down due to the negative effects of auction-induced competition. Today, as firms continue to experiment with the reverse auctions, it is important to understand how the interplay of the auction context, the service characteristics, and buyer-supplier relationships affects auction outcomes and the success of the auctioned projects. This PhD dissertation investigates online reverse auctions in service industries (e.g. software development, building construction). The differences between services and products (services can be more difficult to describe and require more intensive communication) challenge theories that try to explain auction outcomes. We study several aspects of auctioning service contracts: the buyer’s choice between auctions and negotiations; the contract allocation decisions in auctions; the heterogeneity of buyers’ procurement behaviour; and the effect of auction outcomes on buyer-supplier relationships and project performance during the project execution. Some of the key findings are: 1) that the buyer’s repeat exchange interaction with vendors as well as the satisfaction with a vendor’s past performance lead to the buyer’s preference for using bilateral negotiation to allocate the next project; 2) that there are five buyers’ tactics that allow to increase the likelihood of contract allocation; 3) that the outcomes of online reverse auctions can aggravate project managers’ role constraints and that project managers can use relational exchange competences to overcome these constraints. Overall, buying services through online reverse auctions is quite different from buying products. This thesis makes the first steps to develop theoretical knowledge to account for that difference

Implementing Business-to-business Online Reverse Auctions

The purpose of this study was to address the gap in the academic literature by developing and testing a model to successfully implement online reverse auctions with respect to: (1) reducing purchase prices, and (2) developing/maintaining buyer-supplier strategic alliance relationships. A survey was sent to 603 members of the Institute of Supply Management who reported to be in purchasing/supply management role. Companies were surveyed to determine the effect of auction design and purchase type on the "successful" implementation of reverse auctions, in terms of the reduction in purchase price and the success of buyer-supplier strategic alliance. The measures developed by Mohr and Spekman (1994) and Monczka et al. (1998) were used to assess the "successful strategic alliance" and its critical antecedents including attributes of the relationship (trust, commitment, coordination and interdependence), communication behavior (information quality, participation and sharing) and conflict resolution techniques. The research concluded that for the purpose of reducing purchase prices (1) companies prefer to use open-bid rather than sealed bid auctions, (2) companies prefer to organize auctions with the help of a market maker than in-house, (3) an average of 14.4% is the reduction in purchase prices when using online reverse auctions to outsource products. The research study also concluded that online reverse auctions are used for: (1) either the short-term or the long-term and not for both when purchasing any type of product, (2) the long-term when larger size companies outsource production items and material, (3) the short-term when smaller size companies outsource MROs and/or services. The research found that from the perspective of the buying company in the alliance, the following were found to be significantly related to partnership success: trust, coordination, communication, information quality, information participation, information sharing, joint problem solving, persuasive attempts, and low use of avoidance and destructive conflict resolution tactics. Buyers did not find any significant relationship between the auction application and the predictors of success of supplier strategic alliances. Finally, the study concluded that buyers value the importance of the strategic relationships with their suppliers more than the promised reduction of purchase prices when outsourcing products/services using online reverse auctions.Industrial Engineering & Managemen

Creating business value through e-marketplace trading

Electronic marketplaces (e-marketplaces) have been researched over many years from the study of electronic data interchange (EDI) systems to the current internet based trading platforms. Early e-marketplaces connected a buyer and supplier using proprietary systems that established a market hierarchy. The buyer was responsible for the system, established the terms of trade and the electronically enabled supplier could connect to the system. These systems were costly to build, which limited their use, and only organisations with an integrated system could use them. The web based e-marketplaces opened up the possibility of connecting many buyers and suppliers and enabling electronic transactions. The e-marketplace offers opportunities for establishing trade relationships with many organisations across the world. Business to business (B2B) e-commerce is a significant part of the Australian economy and there are opportunities to take advantage of e-marketplace trading. One of the advantages of electronic trading is the ability of the technology to deliver transaction benefits; these can have a significant impact on organisations regardless of organisational size. However, despite the potential of the e-marketplace to deliver organisational benefits there have been limited studies which consider the strategic implementation of e-marketplace trading. Organisational strategy and the implementation of strategic initiatives involve interactions between organisational structures and agents. The analytical dualism this represents complicates uncovering the fundamental causes of e-marketplace participation. Not only does the adoption of e-marketplace trading impact on the buyer and supplier organisations, it introduces the e-marketplace vendor organisation and the e-marketplace technology into the participation decision. The complexity of the interactions across organisational structures and between organisational agents and technology adoption can produce a diversity of outcomes. The philosophical underpinning of critical realism for the study is supported by the lack of understanding as to why, and in what circumstances, organisations successfully participate in e-marketplace trading. The critical realist philosophy provides the opportunity to understand the interrelationships between context, organisational structures and agents and identify the causal mechanisms involved in producing various outcomes. It allows for the development of middle level theory as existing theories are examined to explain the perceived phenomena. Large organisations operating in Western Australia are used as case studies to uncover the causal relationships between context, structures and agents that can produce successful, strategic implementation of e-marketplace participation. Existing literature in relation to e-marketplaces and IT adoption is used to develop the research questions and formulate the interview questions. The structured case methodology is used to analyse each case and relate the findings to possible explanatory theories. Context, mechanism and outcome patterns, identified in each case, are presented. Building on economic market, institutional and network theories the research identifies organising vision theory and community discourse as explanations for organisational legitimation that can circumscribe the use of e-marketplace trading. Six types of community group that influence organisational adoption of e-marketplace technology are identified. The research suggests that the influence of these groups within the organisation, the fit with organisational culture and strategic objectives can prevent or instigate change. Further, the decision making process supported by the group (or group member) is more influential in the strategic adoption of the e-marketplace than the ability of the technology to deliver efficiency or transaction processing gains. This implies that technology adoption studies should include contextual and environmental issues and practitioners should examine how much their decision making is influenced by organisational and environmental features. The thesis contributes to the discussion on organising vision theory, e-marketplace trading and business value creation. It demonstrates the application of the structured case study methodology to research that is underpinned by critical realism

Trusted operational scenarios - Trust building mechanisms and strategies for electronic marketplaces.

This document presents and describes the trusted operational scenarios, resulting from the research and work carried out in Seamless project. The report presents identified collaboration habits of small and medium enterprises with low e-skills, trust building mechanisms and issues as main enablers of online business relationships on the electronic marketplace, a questionnaire analysis of the level of trust acceptance and necessity of trust building mechanisms, a proposal for the development of different strategies for the different types of trust mechanisms and recommended actions for the SEAMLESS project or other B2B marketplaces

Trusted operational scenarios - Trust building mechanisms and strategies for electronic marketplaces.

This document presents and describes the trusted operational scenarios, resulting from the research and work carried out in Seamless project. The report presents identified collaboration habits of small and medium enterprises with low e-skills, trust building mechanisms and issues as main enablers of online business relationships on the electronic marketplace, a questionnaire analysis of the level of trust acceptance and necessity of trust building mechanisms, a proposal for the development of different strategies for the different types of trust mechanisms and recommended actions for the SEAMLESS project or other B2B marketplaces