Implementation of Online Reverse Auctions: Comparison of Czech and Slovak Construction Industry

Online Reverse Auctions (ORA) are an electronic commerce tool that enables direct communication between buyers and sellers and thus have the potential to make the procurement processes more efficient which leads to improved business performance of the buyer. The presented research investigates how ORA are implemented in the specific environment of Czech and Slovak construction industry. The barriers and drivers associated with this procurement route were identified by investigating the available body of literature. Next, an empirical study investigating the use of ORA was conducted within Czech and Slovak construction industry using a carefully designed online survey. The results show that there is a difference between the adoption levels of ORA between the Czech Republic and Slovakia. Decrease in bid prices and increased transparency are perceived as the most important drivers for ORA users while unwillingness of suppliers to participate, followed by high acquisition costs are perceived as the most important barriers. The identified importance of drivers and barriers of the ORA use provides the starting point for the implementation of this procurement route in construction industry, which will lead to increased competitiveness of the sector in the next step. The obtained results confirm that this procurement route has a significant potential within the construction industry