Evidence-based analysis: the success factors of a new competitor entering the negotiation in B2B e-procurement

ABSTRACT

The paper is providing a unique insight into the increased B2B competition answering the question what are the predictors of the new competitor´s success, using empirical research on large comprehensive real procurement data set, validating and enhancing the qualitative research within the mentioned studies. The research based on the logistic regression and CHAID decision tree showed the following outcomes: (1) competition environment with a successful new competitor does not generate higher competitive pressure and does not bring significant additional savings against the competition with an unsuccessful new competitor; (2) the most crucial factors determining the winning of the new competitor are the number of new competitors with its ratio and transparency of competition. This model reveals the importance of transparency in a competition where a higher transparent environment pushes frequent competitors to more intensive competition leading to their higher success rate. Low transparency in the competition within the B2B supply chain reduces the competitive behaviour of frequent competitors leading to a higher success rate of a new competitor to win the contract.

KEYWORDS:

• New potential supplier
• competition
• electronic reverse auction
• saving
• price

JEL CLASSIFICATION:

• D21
• D40
• L11
• O31

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the Slovak Research and Development Agency under Grant [APVV-16-0368].