Negotiation in Sourcing in E-Procurement: A Case Study of two Australian Private Sector Companies using Actor Network Theory

Abstract:

Negotiation is an important part of commerce (Bichler et al 2003).  With the use of internet-based technologies to procure goods and services, the sourcing process of multiple goods or services usually involves complex negotiations (Aguiler 2007). Advanced technologies such as e-procurement can facilitate effective solutions for negotiation between trading partners (Bichler et al 2003). However, in order to support business negotiations with electronic tools effectively, a deep understanding of real life business negotiation is required (Schoop 2008).  This study aims to explore negotiation in the sourcing process in the e-procurement network of two Australian private sector companies. Two different companies, which operate in different markets were selected to provide valuable information regarding the approach of negotiation in the sourcing process in the e-procurement environment. The respondents included the Purchasing Managers and the suppliers for the companies.  Actor Network Theory (ANT) was used as guidance to explore this study.   The significance of this study is to improve the value chain between partners in the sourcing process through the understanding and identification of social issues in electronic procurement negotiation. As such, it is hoped that greater success with e-procurement will be achieved.
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