The existing literature on e-RAs focuses primarily on the private sector, and little research has been conducted on e-RAs in the public sector.
The literature generally assumed that the higher the number of bidders, and the greater the competition, the greater the success. Similarly, higher auction volume, ease of specification and low purchase complexity are each thought to attract more suppliers, leading to more successful e-RA outcomes. Higher auction volume may also increase success by permitting suppliers to accept lower margins, while clearer specifications and simpler products give suppliers the confidence to better price their offerings.
However, Shalev & Asbjornsen, in their research, found no correlation between e-RA success and the number of bidders or auction volume, but correlation between e-RA success and each of competition among suppliers, purchase complexity and purchase specification. The number of bidders was found to be correlated with competition among suppliers, specification and complexity. Auction volume was found to be correlated with none of the factors, which was a big surprise. They discussed the possible explanations for our results and draw conclusions for public sector procurement managers to consider when deciding whether to conduct an e-RA for a particular purchase.
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