Literature Review on Online Reverse Auctions Research

8/10/2019 Literature Review on Online Reverse Auctions Research

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Factors Influencing Users Adoption of Government-To Business (G2B) Reverse Auctions System

Megat S. Zulkifli

Putra Business School University Putra43400 UPM, Selangor, Malaysia

Mohd Fuaad Said

Faculty of Economics &ManagementUniversity Putra Malaysia

43400 UPM, Selangor, Malaysia

ABSTRACT

Government-to-Business (G2B) reverse auctions are receiving attention as an effective strategy for reducing theprice of purchased goods and services. The efforts to understand the G2B reverse auctions has been lacking despitethe online auctions being an avenue to create an efficient and transparent public sector. As governments around the

world are moving from paper-based to process-based information technology (IT) infrastructure, reverse auctions arebeginning to replace traditional paper-based manual procurement transactions. Effectively, the importance of thereverse auctions to the public sector further is underscored by projections indicating that the economic potentialbenefits include significant deficit reduction as percentage to GDP of 16%, and potential cost savings of 7% to GDPfor Malaysia (Settoon and Wyld, 2003). The aim of this study is then to fill this gap. In this paper, literature andpublished research stream on G2B reverse auctions is reviewed including the eBidding, the Malaysian G2B reverseauctions market. To date, explanations of why public sector procuring officials decide to adopt the reverse auctionsstrategy are incomplete, as such future research is needed to explore the antecedents of the G2B reverse auctionssystem.

Keywords: e-Government Systems, Government-to-Business Centric Perspective, Reverse Auctions


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1. INTRODUCTION

The Government-to-Business (G2B) reverse auctions is an innovative procurement auctions for the public sector

(Carter et al., 2004). G2B reverse auctions is defined as an online and real-time auction between a buying party

and two or more suppliers hosted by a single buyer to outsource products and/or services, in which multiple

pre-qualified suppliers compete for the buyers bids (Emiliani, 2004). Government-to-Business (G2B) reverse

auctions is an inter-organizational information system (IOS) with which participating buyers (governments) and sellers

employ electronic markets for transactions. G2B reverse auctions involve three groups government procuring

agency, registered supplier, and service provider of the reverse auction services.

The majority of research on electronic auction markets are focused on developed countries, however lack of

resources (e.g. skilled people, proper ICT infrastructure) inhibit the development of reverse auctions in the developing

countries (Carter et al, 2004). Prior research in this area has been in the domain of private sector settings. There is

little empirical research exploring the appropriateness (or motivation) of reverse auctions use by the public sector

procuring officials (Jap, 2007), and similar trend shown in the case of Malaysia. Previous studies on auctions

deployment in Malaysia are qualitative in nature and focusing on factors that motivates suppliers to adopt auctions

rather from the government users perspectives. An empirical study on the factors influencing the adoption of

reverse auctions in Malaysia will enhance the boundary of knowledge in terms of broadening the understanding the

use of reverse auctions as sourcing strategy in Malaysia. This study in a developing country will increase the

understanding of how G2B reverse auctions and will assist the government to increase the reverse auctions adoption

by the government users. The effort to understand the behavior of government procuring officials in adopting the

reverse auctions has been lacking. The studies of G2B reverse auction have been relatively rare so there is still a lack

of a good understanding of how it work, especially from the government users perspective.


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The paper will also focus on the Malaysian G2B reverse auctions namely the eBidding market. The study of G2B

reverse auctions have become significantly important for the procurement of goods and services in South East Asian

countries including Malaysia (Settoon and Wyld 2003). Firstly, the government shows commitment in trying to

promote the G2B by making it mandatory for all procurement of goods and services through the e-procurement.

Secondly, the adoption of eBidding in the G2B electronic markets is low (ePerolehan, 2012). Until April 2012, there

are a total of 419,688 transacting procurement units out involving 28 ministries and department that are located in

the Peninsular of Malaysia. However the number of transacting procurement units via eBidding is only 315

transactions out of 419,688 transactions procurement units. The balance amount was transacted using the manual

system (www.home.ePerolehan.gov.my,2012). Thirdly, explanations for the phenomenon of why procuring officials

decide to employ eBidding are incomplete, as such the factors that influence reverse auction use are important for

government policymakers.

This study contributes to the literature in the following ways: Firstly, this study will provide a deeper understanding

the critical factors of what leads to the government procuring officials behavior to adopt the reverse auctions

system, which has not been previously done. The paper also fills the gap in the literature arising from a lack of

research in the public sector G2B reverse auctions environment. It is hoped that the study will help build the

foundation for future studies in G2B reverse auctions adoption.

2. LITERATURE REVIEW

This paper is organized as follows. This literature review is taken from e-government research streams , publish

research on reverse auctions and G2B reverse auctions adoption literature. The reverse auctions mechanism is

introduced, global public sector reverse auctions, followed by a description of the Malaysian reverse auctions

context. Theoretical and practical implications are offered and then close with recommendations for future research.
http://www.eperolehan.gov.my/http://www.eperolehan.gov.my/


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The process of searching for related literature focused on articles from different scientific publishers on a timeframe

from 2000s until mid 2012.

2.1 Reverse Auctions System

A reverse auctions system is defined as an online and real-time auction between a buying party and two or more

suppliers (Carter et al., 2004). Reverse auction is an electronic competitive bidding between suppliers that drives

prices down or purchasing auctions from buyers. Reverse auctions is an innovative sourcing strategy in the area of

supply chain management (SCM) and as a strategic sourcing tool, it is employed to facilitate firms to enhance the

organizations competitive advantage (Emiliani et al., 2004 ).

The body of literature on reverse auctions is still in its infancy (Arnold, Kamer and Schnabel 2005; Carter et al.

2004; Wagner and Schwab 2004) and research specific to the factors that influence reverse auction use is sparse

(Joo and Kim 2004). However, The procurement and supply chain management research literature is rich with case

studies documenting how leading global firms have effectively used reverse auctions in their procurement activities

to increase competitiveness, cost efficiency and manage their supply chain (Wyld, 2011). Reverse auctions

provides an avenue for organizations to contribute to a position of competitive advantage by reducing the price and

the transaction costs associated with purchasing goods and services. Research on reverse auctions in recent years

has been focused on the antecedent factors of online auctions adoption in private sector and business

organizations at organizational level (Radhakrishnan and Davis, 2004).


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2.2 Global G2B Reverse Auctions

The introduction of G2B reverse auctions into procurement is a relatively recent phenomenon. Reverse auctions are

increasingly being used in G2B electronic markets to procure goods and services for governments (Beall et al. 2003).

Online reverse auctions system is expected to be widely embraced by global governments due to its benefits and

from the popular success in the private sector (Wyld, 2012). There are many compelling reasons for governments to

adopt reverse auctions.

Reverse auction is an efficient and structured way to conduct online negotiations between public sector with their

suppliers. Reverse auctions have been reported to yield significant price reductions and time saving for governments

as well as to create opportunity for suppliers to penetrate new markets (Emiliani and Stec 2002; Smeltzer and Carr

2003). In fact, Beall et al., (2003) argue that reverse auctions are beginning to replace traditional paper-based or

email-based requests for proposals (RFP) and manual transactions due to its benefits. For the government, reverse

auctions offers many advantages including price reduction, increase in buyer productivity, reduction in cycle time,

access to many suppliers at the same time, creating a more competitive environment, standardization and

transparency in purchasing process. In terms of transparency, the government implemented eBidding to fight

corruption, reduce back room negotiations, and bring transparency to the government purchasing process. The

process is open since a reverse auction preserves bidder anonymity and provides suppliers with real time pricing

feedback (Jap, 2007).

Countries in which application of electronic reverse auctions to public procurement has been pioneered include in

particular Brazil, the United Kingdom, Singapore, Thailand, and the United States (Simeon, 2005). Previous studies

on online auctions are as shown in Table 1, Dolpanya et al., (2008); Radhakrishnan et al., (2005) ; Souza and


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Pereira, (2009); Hackney et al., (2009) ; Neri, M.,P. et. al, (2012) ; Li D. et, al (2007) ; Winston T. H. et., al (2009).

An empirical study was undertaken on suppliers participation in Thai electronic auction markets by Dolpanya et al.,

(2008). The study found that suppliers participation depends on organizational motivation, and their capabilities,

namely efficiency motive, legitimacy motive, and organizational capabilities to participate in Thai B2G e-auction

markets. A case study Radhakrishnan et al., (2005) in the United States on the effects of system related,

organizational readiness, external factors on the supplier willingness to adopt G2B reverse auctions in the Federal

Government. The authors argue that the factors affect willingness to adopt governmental reverse auctions are

system factor (difficulty), perceived external factors (price based competition intensity, customer power and

information intensity) and organizational readiness factors (financial readiness and technological readiness).

Case study by Souza and Pereira, (2009) on the ComprasNet portal Brazilian Governments public sales

electronic reverse auctions to examine the relationship between auctioneers, government agencies and negotiation

gain. Three factors are found to be influencing the successful use of online auctions : pre-selection of suitable

auctioneers; agencies with more than one auctioneer will present higher auction gains ; and failure of auctions is not

related to the agency or auctioneer but due to price and lack of competition. Another case study by Hackney et al.,

(2009) on reverse auctions impact on organizational efficiency to ensure procurement excellence in the UK. The

authors contend that reverse auctions can improve procurement processes, realise cost savings and reduce

delivery times. The research also note that reverse auctions can produce dis-benefits, including poor buyer and

supplier relationships and social implications.

A descriptive study by Neri M.P. et. al, (2005) on global eBay sites to identify patterns of attributes that contribute to

the success or behaviour of e-auctions in websites associated with a recognized web brand in web-based bidding


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to strengthen Philippines e-Commerce 2000 Act. The study found out a direct connection between the rise of buyer

satisfaction and access, consumer protection and efficient payment and deliveries methods. A case study by Li D.

et, al (2007) to identify factors for the users brought by the reverse auction in the supply chain management in

Chinas Department of Commerce. The authors outline the conditions for a beneficial reverse auctions for the

purchasers are market environment with free competition and flexibility in market price; specifiability of the products,

good supply chain relations, internal organization structure ; and supervisory and contract management. Winston

T.H K,. Mariano R.S., and Tse Y.K, (2007) conducted an econometric analysis on the vehicle quota system

(VQS) in Singapore to understand whether the change in auction format led to a change in bidding behaviour when

the switch from a sealed-bid format to an open bidding format for the quota license auctions. From the econometric

analysis, the authors argue that an open auction is beneficial for car buyers, in terms of cost savings, and with

greater transparency and less uncertainty, buyers are better off under the open auction system

Table 1. Previous Studies on Public Sector Online Auctions Adoption

No Authors Variables Country UserGroups

Findings

1. Dolpanya et. al.,(2008)

Empirical study onsuppliers participation inThai electronic auctionmarkets

Thailand Supplierusers

Suppliers participation depends onorganizational motivation, and theircapabilities, namely efficiency motive,legitimacy motive, and organizationalcapabilities to participate in Thai B2Ge-auction markets.

2. Radhakrishnan et.al, (2005)

Case study on the theeffects of the three groupsof factors(system related,

organizational readiness,external) on the supplierwillingness to adopt G2Breverse auctions.

UnitedStates ofAmerica

Supplierusers

Factors affect willingness to adoptgovernmental reverseauctions: a system factor,perceived external and organizational

readiness factors.

3. Souza andPereira, (2009)

Case study on the Brazilianelectronic reverse auctionstoexamine the relationship

Brazil AuctioneersUsers

Three factors influencing successfulonline auctions : pre-selection ofsuitable auctioneers; agencies withmore auctioneers; and price


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which predominantly studied as descriptive, case studies and the level of analysis is on the suppliers as users at

organizational level. Factors affect the willingness to adopt governmental reverse auctions include factors system

factor, perceived external and organizational readiness factors. Product specifiability, organization structure of

purchasing, appropriate market conditions, selection of competent suppliers and flexible commercial arrangements

are important in determining auctions success. The trend also indicate that online reverse auctions are a very

recent and an emerging research area, however, there are many compelling reasons for governments to adopt

reverse auctions. G2B reverse auctions system is expected to be widely embraced by global governments due to

its benefits and from the popular success in the private sector (Wyld, 2012).

2.3 Online Auctions in Malaysia

There is little empirical research exploring the appropriateness (or motivation) of reverse auctions use by the public

sector procuring officials (Jap, 2007), and similar trend shown in the case of Malaysia. An empirical study on the

factors influencing the adoption of reverse auctions in Malaysia will enhance the boundary of knowledge in terms of

broadening the understanding the use of reverse auctions as sourcing strategy in Malaysia. Previous studies on

online auctions are as shown in Table 4, Jamaludin et al., (2011); Kamarulzaman and Rahman, (2009) ; Settoon

and Wyld, (2003) ; Mukhtar et al., (2009) ; Eu-Gene, (2010) ; Anthony, P (2009) ; Gan, K.S. et al, (2009) ; Abdullah,

R and Zahadi E. D.(2011) ; Akmaliah A. K, (2007); Abdulhadi, (2013) ; P. Antony, (2005).

A case study on the success factors and obstacles in e-auctions use in Malaysian agricultural sector has identified

the advantages and drawbacks of e-auction use in Malaysia (Kamarulzaman and Rahman, 2009). The authors

argue that e-auction use in the agricultural sector could reduce purchasing costs of materials and assists suppliers

in negotiating prices and improve competitive bidding. However, the inability of suppliers to understand detailed

understanding of costing structure and prices potentially harm supplier-buyer relationship and sowing distrust. The


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authors also contend that specifiability and detailed description of the services are important in determining auction

success. A case study on top e-auctions sites in Malaysia, namely the lelong.com.my and eBay was undertaken by

Eu-Gene, (2010). The author proposed four critical success factors in determining successful adoption of e-auctions,

namely security, costs, market volume and website performance. An integrated e-marketplace framework in

Malaysian wood based products industry was proposed by Mukhtar et al., (2009). The authors propose a

development of an e-marketplace which allows online auctions and purchasing with the interface to employ

short-messaging-services in the e-negotiation transactions. A case study on online auctions found that some

electronic auctions are not Syariah-compliant (Jamalludin et al., 2011). The study proposed a Syariah-compliant

electronic auction conceptual framework and system architecture for e-auction to address the issues of

non-compliancy with the Syariah rules that potentially be the basis for a Syariah-compliant electronic auction model

for commercial use.

A study on the potential impacts of Government-to-Business (G2B) reverse auctions was undertaken in Malaysia

and four other regional countries (Settoon and Wyld, 2003). The authors contend that the e-sourcing strategies

could yield significant benefits for governmental budget in terms of immediate cost savings, time and temporal

efficiencies and deficit reduction. They concluded the governments could improve efficiency in state expenditure,

reduce subsidies and reliance on external financing by adopting the electronic reverse auctions. A review by

Anthony, P. (2009) on electronic auctions outline types of auctions benefits to consumers. The author also propose

bidding strategies for bidders and sellers to maximize participation in electronic bidding including employing

buy-it-now, sniping tactics and participate in multiple auctions. For sellers, the author suggest they employ shilling

tactic by participating in the bidding to push prices downward and by offering reasonable price consistent with

bidders requirements.


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In an empirical study, Gan, K.S. et al, (2009) conducted an empirical evaluation of self-adaptive genetic algorithm

and deterministic dynamic adaptation algorithm for searching most effective online auction strategies. Genetic

algorithm is a search technique used in computing to search for best approximate solutions in large search space

for optimization and search problems, for example computation that use techniques by evolution biology such as

inheritance and mutation. Deterministic dynamic adaptation is a discipline which alters the value of strategy

parameter by some deterministic rule. The existing bidding strategy is evolved using a standard genetic algorithm

which applied a fixed crossover and mutation rates. The study investigate whether using deterministic dynamic

adaptation and self-adaptation can improve the bidding strategy by evolving better bidding strategies in an online

auction setting. From the comparative study showed that the strategies evolved from the dynamic decrease

mutation rate performed better than strategies evolved from dynamic adaptation schemes, in terms of success rate

and average payoff when bidding in the online auction marketplace.

In a case study on Abdullah, R and Zahadi E. D.(2011) proposed a framework of bidding system for online

registration number of new registered vehicle. The framework is designed to help users to obtain a number plate

through an open bidding process and bidding results notifications. The framework comprise of invitation to bids

functions based on highest price and on-time bid placements. Another empirical study by Abdulhadi, (2013) on

eBay Malaysia to evaluate the customer satisfaction by focusing on the influence of the various factors of

satisfaction among the Malaysian EBay users. The study study proposed a model of framework for the research

study on online customer satisfaction. The factors investigated are merchandise, transaction, response time,

security/privacy, payment and delivery with response timefound not significant in the study.

In a case study by Akmaliah A., K, (2007) on online marketplace service innovation framework based on

Lelong.com.my to investigate entrepreneurship and innovation factors in the development of new online based


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business. The study provide a detailed account of Lelongs online marketplace service innovation from its infancy to

the successful online auction market in Malaysia. The study contented that service innovation is derived from

interactions among managerial-organisational, technology-infrastructural, and business environment and

sustainable success of the new service by focusing on the customer loyalty and satisfaction. An exploratory study

by P. Antony, (2005) on an English Auction (Robosar) to investigate sellers strategy for online auctions for

Malaysia and global marketplace. In online auctions, the reservation price of an item set by the seller determines

whether the item can be sold or not. This paper propose a design of a seller agent that recommends a reservation

price of a given item to be auctioned off by the seller. The author proposed an algorithm reservation price for a

successful bidding strategy comprise of successful; failed ; sell period; competitors ; profit functions. The algorithm

will be improved further by including other auction protocols such as sealed bid auction.

Table 2. Previous Studies on Online Auctions Adoption in Malaysia

No Authors Variables UserGroups

Findings

1. Settoon and Wyld

(2003)

Case study on potential

economic impact of governmentreverses auctions adoption.

Supplier

users

Governments should continue adopting and

promoting reverse auctions use.

2. Mukhtar et al.,(2008)

Case study on the potential useof e-marketplace and auction inMalaysian SMEs wood-basedproducts industry.

Supplierusers

Proposed an integrated e-marketplaceframework in Malaysian wood basedproducts industry.

3. Siew Eu-Gene (2010) Case study on the criticalsuccess factors of e-auctionssites: security, costs, marketvolume and website

performance.

Users All four factors are found to be influencingthe successful use of online auctions inMalaysia

4. Kamarulzaman andRahman (2009)

Case study on the criticalsuccess factors and obstacles ine-auctions use in Malaysianagricultural sector : productspecifiability, costs and pricingstructure.

Supplierusers

Costs, product specifiability and descriptionof the services are important in determiningauctions success.


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Findings

5. Anthony, P (2009) An overview of electronicauctions, definition, type ofauctions available and online

auctions benefits to consumers.

SupplierUsers

Strategies for buyers to win bids includebuy-it-now, participate in multiple auctionsand sniping (participate in late bidding).

For sellers, they could employ shillingtactic (participating in the bidding to pushprices downward) and offering reasonableprice consistent with bidders requirements.

6. Gan, K.S. et al, (2009) An empirical evaluation ofself-adaptive genetic algorithmand deterministic dynamicadaptation algorithm forsearching most effective onlineauction strategies.

SuppliersUsers

Comparative study on experimentalevaluation showed that thestrategies evolved from the dynamicdecrease mutation rate performed better thanstrategies evolved from dynamic adaptationschemes in terms of success rate andaverage payoff when bidding in the online

auction marketplace..

7. Zahadi E.D. andAbdullah R., (2011)

Proposed a framework of anintelligent bidding system foronline registration number ofnew registered vehicle.

Users The framework key components area.

Invitation to Bids (Item to bid,classification, open bid, and notifications);b.

Winning bids criteria based on biddershighest price and on-time bid placements

8. Abdulhadi A, (2013) The empirical study is toevaluate the customersatisfaction of EBay Malaysia byfocusing on the influence of the

various factors of satisfactionamong the Malaysian EBayusers using the variables whichwere ignored in the past by priorresearchers from theirperspective of online shoppingexperience.

Users The online satisfaction study proposed amodel of framework for the research studyon online customer satisfaction. The factorsinvestigated are merchandise, transaction,

response time, security/privacy, paymentand delivery with response time found notsignificant in the study

9. Akmaliah A., K, (2007) Case study to propose an onlinemarketplace service innovationframework based onLelong.com.my to investigateentrepreneurship and innovationfactors in the development ofnew online based business.

Suppliers Detailed account of Lelongs onlinemarketplace service innovation may serve asthe baseline reference for new venture intoe-commerce markets. The service innovationemerged from interactions amongmanagerial-organisational,technology-infrastructural, and businessenvironment and sustainable success of thenew service by focusing on the customerloyalty and satisfaction.


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Findings

10. P. Anthony, (2005) Case study on an English Auction(Robosar) to design sophisticatedand efficient bidding strategies for

agents participating in onlineauctions.

SellersUsers

The author proposed an algorithmreservation price for a successful biddingstrategy comprise of successful; failed ; sell

period; competitors ; profit functions.

Table 2 show the trends of Malaysian online auctions which predominantly studied as case studies and in the

marketplace and at SME firm-level of analysis. A study on the local wood based industry highlighted the importance

of auctions framework for the nations industrial competitiveness. The studies on eBay, Lelong.com and Robosar

were mainly focussing on B2C (business-to-customer) customer satisfaction in online shopping and sellers offering

price, cost, and product specifiability to ensure successful bidding. A review of the literature reflect similar trends of

global G2B reverse auctions that these publications reveals the majority of the research is conceptual and based on

qualitative interviews and case studies.

2.4 Malaysias eBidding

The Malaysian G2B reverse auctions system, the eBidding is a module under the ePerolehan. It is an innovative

online procurement service with the promise of increase in procuring efficiency and transparency and save time and

cost for both procuring managers and suppliers (Unit ePerolehan, 2009). The eBidding is an online reverse auctions,

which a situation with one buyer (government) and a group of pre-selected sellers bids online for the supply of goods,

services or products to the agencies. Introduced in 2006 under the Ministry of Finance (MoF) to realize the vision

towards providing innovation and efficiency in public sector procurements (PekelilingPerbendaharaan, 2009). To

date, all Ministries have deployed the eBidding for procuring supplies, products and services. Each of ministries can

procure the goods, services through eBidding provided by government registered suppliers. eBidding is suited for

procuring agencies which are sourcing for goods and services with costs of RM50,000 and above and without the

need for complex technical evaluations. With eBidding, public sector procuring officials will have the option, either to


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source via tender evaluation process service or choose eBidding, which provide the benefits of shorter procurement

process, time-saving and lower prices.

eBidding provides an end-to-end solution for auction transactions comprising three distinct communities, namely the

supplier community, the buyer community, and the procurement service provider (Pekeliling Perbendaharaan, 2009).

The supplier community consists of suppliers who have registered with the MOF to provide supplies and services to

the government. There are about 120,000 registered suppliers supplying goods under four categories, that is,

Central Contract, Direct Purchase, Quotation and Tender purchase (http://home.eperolehan.com.my/v2/index,

2012). These suppliers bear the responsibility to coordinate with the procurement service provider and register onto

the new system with the Government Procurement Management Division, within Ministry of Finance. All suppliers

are required to provide and update the necessary information regarding the items that they supply online. The

Government of Malaysia is the buyer community. The Government is a major purchaser of goods and services from

the suppliers spending a total of RM206.2 billion in 2010 alone, (http://www.treasury.gov.my/bajet2011). The cost of

processing and managing this process is extremely high with increasing expectation from the supplier side for the

government to be more efficient. It is the responsibility of the buyer to have the necessary information in place to be

able to accept and respond to the suppliers bids electronically in the process of procurement

(http://home.eperolehan.com.my/v2/index, 2012). The ePerolehan Unit and Commerce Dot Com Sdn Bhd (CDCSB)

are the service providers responsible for system monitoring, implementation and maintenance, data center

operation, user training, technology transfer and policy and procedure implementation. The modules of the system

are supplier registration, central contract, direct purchase, quotation system, tender system and eBidding

(http://home.eperolehan.com.my/v2/index, 2012).
http://www.treasury.gov.my/bajet2011http://www.treasury.gov.my/bajet2011


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The eBidding procurement process is geared towards procuring services and supplies with pre-determined scope

and clear specifications with participating bidders not less than five suppliers which will be screened by

pre-qualification panel (Pekeliling Perbendaharaan, 2009). The eBidding process comprises of four key steps from

pre-qualification, online bidding in 14 days, selection and appointment of supplier and contract administration. As

illustrated in Figure 1, the public sector sourcing officials in the procuring agencies will advertise the bidding

specifications in an online and printed media. This is followed by processing and evaluating received applications by

pre-qualification committee; conducting online bidding process via eBidding ; and appointing the lowest bidder as

the winner by issuing appointment letter. Following this, contract management is executed with delivery of services

and payment to the appointed supplier.

Figure 1. eBidding Auction Process Flow Adapted From ePerolehan Malaysia,(2009)

Source : (Pekeliling Perbendaharaan, 2009)


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3. Conclusion

In this paper, a review on online reverse auctions, global G2B reverse auctions, Malaysias auctions marketplace

and Malaysian G2B reverse auctions market. A review of the literature reflect the trends of global and local G2B

reverse auctions that the majority of the research is descriptive, conceptual and based on qualitative interviews and

case studies. This review contributes to a better understanding of the factors affecting auction use in the market

place, however a more realistic views on the online auctions in Malaysia could be expanded by undertaking a study

on Malaysian G2B reverse auctions. The review find the adoption of eBidding in the G2B electronic markets is low

(ePerolehan, 2012), and explanations of why public sector procuring officials decide to adopt the reverse auctions

strategy are incomplete. As such future research is needed to explore the antecedents of the G2B reverse auctions

system in Malaysias G2Bauctions market. Future steps include proposing a framework of factors influencing users

adoption of the G2b system to develop survey instruments, followed by pretest of the instruments, the main survey,

and follow-up interviews (if necessary) to explore unexplained results.


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Documents

Literature Review on Online Reverse Auctions Research