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Strategies for E-Procurement: Auto Industry Hubs Re-Examined

Strategies for E-Procurement: Auto Industry Hubs Re-Examined

Mickey Howard, Richard Vidgen, Philip Powell
Copyright: © 2010 |Volume: 3 |Issue: 1 |Pages: 22
ISSN: 1935-5726|EISSN: 1935-5734|ISSN: 1935-5726|EISBN13: 9781616929336|EISSN: 1935-5734|DOI: 10.4018/jisscm.2010092902
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MLA

Howard, Mickey, et al. "Strategies for E-Procurement: Auto Industry Hubs Re-Examined." IJISSCM vol.3, no.1 2010: pp.21-42. http://doi.org/10.4018/jisscm.2010092902

APA

Howard, M., Vidgen, R., & Powell, P. (2010). Strategies for E-Procurement: Auto Industry Hubs Re-Examined. International Journal of Information Systems and Supply Chain Management (IJISSCM), 3(1), 21-42. http://doi.org/10.4018/jisscm.2010092902

Chicago

Howard, Mickey, Richard Vidgen, and Philip Powell. "Strategies for E-Procurement: Auto Industry Hubs Re-Examined," International Journal of Information Systems and Supply Chain Management (IJISSCM) 3, no.1: 21-42. http://doi.org/10.4018/jisscm.2010092902

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Abstract

Amid the turmoil of the current economic crisis, the wild expectations for business-to-business electronic marketplaces or ‘e-hubs’ as transformative modes of exchange for all industries have subsided. However, e-hubs continue to elicit interest in industries such as car production. Yet, there is little research that investigates firms’ strategies for e-procurement in the automotive industry and the potential benefits of e-hubs to them. This research re-examines the transition from bespoke electronic data interchange to generic electronic procurement, and conflicting motivations and complex barriers at firm and industry level are revealed. The article develops a framework that examines the benefits and barriers to firms joining e-hubs, applies the framework to the car industry, and proposes an e-procurement matrix that offers alternative strategies. Six cases from vehicle manufacturers and component suppliers demonstrate a shallow industry structure that lacks supplier integration, where a particular concern is the emergence of consortium e-hubs that combine a transactional approach for reducing price, with a collaborative approach that requires sharing knowledge. While this dispels the myth of simplistic e-commerce models, the governance of e-procurement across collaborative supply chains is still uncertain.

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