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The Impact of E-Procurement on the Number of Suppliers: Where to Move to?

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dc.creator Nepelski, Daniel
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:11Z
dc.date.available 2013-10-16T07:00:11Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18480
dc.identifier ppn:512767130
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18480
dc.description This paper examines how electronic procurement influences the organization of economic transactions. It seeks evidence for ICT-induced changes in how companies organize their activities and whether ICT lead to more competitive and transparent markets. Testing the relationship between the effect of electronic procurement on procurement cost and sourcing strategy, I provide new evidence that electronic procurement leads to more market transactions. This leads to the conclusion that electronic procurement increases market transparency, lowers search and supplier switching costs and improves the management of supply chain and contradicts the predictions that ICT will lead to a dominance of network-like organizational form and an increasing reliance on hybrid forms of organizing economic transactions. Two implications emerge from these results. The first one is relevant for companies engaging in ICT projects. ICT combined with changes in business strategy leads to a reduction of market transaction costs and, as a result, opens up new possibilities in terms of how business activities can be organized and/or how to structure competition in upstream markets. This effect of new technologies is of clear benefit to companies successfully implementing and using new technologies. The second implication is of great importance for companies whose customers implement ICT to intensify competition among suppliers. Changing environment forces them to adapt to new market conditions and look for new ways of maintaining profitability.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 587
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject L22
dc.subject ddc:330
dc.subject information technology and firm boundaries
dc.subject markets vs. hierarchies
dc.subject sourcing strategy
dc.subject electronic procurement
dc.title The Impact of E-Procurement on the Number of Suppliers: Where to Move to?
dc.type doc-type:workingPaper


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