Transformations in
Business & Economics
- © Vilnius University, 2002-2009
- © Brno University of Technology, 2002-2009
- © University of Latvia, 2002-2009
Article
The Impact of E-procurement on the Number of Suppliers
Daniel Nepelski
ABSTRACT. This paper examines how electronic procurement influences firms’ sourcing strategy. The relationship between the technology choice in a vertical structure is illustrated with respect to its impact on the coordination cost and the competition between suppliers. Hypotheses are tested using data from the e-Business W@tch survey. Assessing the relationship between the effect of electronic procurement on procurement cost and sourcing strategy, the author provides new evidence that electronic procurement leads to more market transactions. This effect depends, however, on industry-, firm- and product-specific features.
KEYWORDS: markets vs. hierarchies, sourcing strategy, electronic procurement.
JEL classification: L22.