Information Technology Services & Sourcing


In addition to reducing the purchasing cost, Internet Enabled Reverse Auctions (RAs) are now being used by buyer firms toexplore new suppliers. The decision to use RAs is increasingly being recognized for its strategic importance to buyer firms.However, such decisions of strategic importance are presumably accompanied by equally serious risks. The first step tomanaging such risks is identifying what they are. Unfortunately, there is no validated check list of buyer risks that can assistfirms when using RAs. We have taken the first step towards addressing this issue by developing an authoritative list of theimportant risks associated with the use of RAs as a sourcing strategy. By employing a rigorous ranking type Delphi surveymethodology, we developed a comprehensive list of the key risks ranked by their relative importance. Implications of ourfindings for both researchers and sourcing professionals are discussed.