TRANSPARENCY IN ELECTRONIC BUSINESS NEGOTIATIONS – EVIDENCE BASED ANALYSIS

Abstract

Purpose: In current economy, where ICT plays a crucial role for being competitive and effective, businesses are facing higher pressures of flexibility and efficiency than ever before. Transparency is often considered as a suitable mechanism for better market prices and more efficient market environment. Electronic business environment provides the possibility to set up more transparent environment and bring higher competitiveness and efficiency on the market. The paper analyse the impact of transparency on prices in e-procurement. Methodology: Reverse auctions are considered as transparent tool simulating in partial level real competition. Together, it allows to examine several levels of transparency set up in auction negotiation process. The impact of transparency on final prices was analysed on real data using relation based analysis were different situations of transparency set up is compared against achieved final price. Findings: Research results based on real data shows, that generally, the transparency in electronic reverse auction can lead to more negative prices agreed by purchasers as current scientific and commercial promotions. Research limitation: Significance of research results is limited due to still low readiness and skills of e-procurers. The validation of results is needed to realized within longer period of time and from environments with different level of e-readiness. Together, it reveal that transparency is more complex issue where the significance of transparency can reveal its sense in some specific situations on the market and negotiation. Value of paper: Evidenced based research reveal some controversy results which support new scientific efforts in microeconomics and socio-economic impact of ICT fields. Together, it affects real practitioners in way how to use and perceive claimed impact of reverse auction solutions.