Understanding suppliers' participation in business-to-government (B2G) electronic auction markets in the thai context


Despite business-to-government (B2G) electronic auction (e-auction) markets being a way for

suppliers to create opportunities for market expansion and for trading activities, little has been done

to understand the behaviour of suppliers participating in these markets. In this paper, we propose a

framework to explain suppliers’ intention to participate, and the level of participation in B2G eauction markets, which will be tested in the Thai B2G e-auction markets. Low supplier participation

has been a major problem in the Thai e-auction markets. We posit that suppliers’ participation

depends on organisational motivation, environmental uncertainty, and their capabilities. The

conceptual framework draws from the Motivation-Ability Framework, Transaction Cost Theory,

Institutional Theory, and Resource-Based Theory. It proposes that four key constructs - efficiency

motive, legitimacy motive, environmental uncertainty, and organisational capabilities influence

suppliers’ intention to participate as well as their participation level in B2G e-auction markets. The

conceptual framework is developed by drawing on our understanding of the Thai electronic auction

market as well as from extensive literature. We believe this framework may be useful to better

understand the key reasons for suppliers to participate in B2G e-auction markets.

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