Attn: Everyone | From: D P Dash | Date: 21-2-2007 |
Research Training Seminar 4.13 Evaluating e-Procurement Strategies A Game-Theoretic Approach Amit Agrahari Business Transformation Laboratory, Infosys, Bangalore amit1978[at]gmail.com Date: Feb 23, 2007 (Friday); Time: 2:30 p.m. Venue: Multi-Media Hall, XIMB Campus, Bhubaneswar All are welcome! Guide: Pani, A. K., & Agrahari, A. (2007). e-Procurement in emerging economies: Theory and cases. Hershey, PA: Idea Group. (Chapters 1 and 8). (Hard copies of these chapters are available with Madhavi, FPM scholar, XIMB.) Chapter 1: Perspectives from IOIS, EDI, and Channel Management: Research Issues in E-Procurement Over the last couple of years, e-procurement has received tremendous attention from researchers and practitioners alike. However, research on e-procurement is still scarce and scattered. This chapter looks into prior research on inter-organizational information systems (IOIS), electronic data interchange (EDI), channel management, and procurement to develop a research framework and identify research issues in e-procurement. It is argued that supply market characteristics and product characteristics can explain the emergence of various e-procurement systems. Further, these e-procurement systems have different impacts on inter-organizational relationships and value generated from e-procurement. However, these impacts are moderated by adoption and implementation risks. Though this model provides us with a holistic view to e-procurement, it is not yet empirically validated, owing to low e-procurement penetration. Chapter 8: Analyzing E-Procurement Adoption Efforts: Case Study of an Indian Steel Manufacturer This case study looks into the evolution of various e-procurement systems at an Indian steel manufacturer, Tata Steel. This chapter argues that rather sticking to one system, organizations need to manage a portfolio of e-procurement systems to realize the full potential of the Internet. Further, these systems evolve over a period of time, thus necessitating dynamic instead of static analysis. Prior research has analyzed e-procurement and its predecessor, EDI-based IOIS, as a static game with adoption and subsidy being the key issues. However, with e-procurement increasingly being a competitive necessity, the issue is not “if to adopt e-procurement”, but “how to adopt e-procurement”. This chapter analyzes e-procurement adoption efforts in a dynamic game setting. First, the e-procurement adoption effort is analyzed in a “without subsidy” scenario and then in a “with subsidy” scenario. Results show that e-procurement adoption efforts are likely to be more if the buyer and suppliers are not myopic, and the rate of decay in strategic benefits from the dyadic relation is low. Further, the buyer can induce more effort from the supplier by offering him subsidies. The buyer will offer a subsidy only if he can take away more than half of the total e-procurement benefits. The level of subsidy depends on the effectiveness of the supplier’s e-procurement adoption effort. Results for the game theoretic model are corroborated with the case study. For more information about this seminar series, please visit: Research Seminars @ XIMB http://www1.ximb.ac.in/users/web/fpm.nsf/pages/Seminars |