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Introduction
An electronic reverse auction (e-RA) is an increasingly successful means of business-to-business interaction ([3] Amelinckx et al. , 2008; [30] Hawkins et al. , 2009). E-RAs typically save buyers 5-40 percent ([62] Tully, 2000), with an average of 20 percent reduction in the costs of purchased goods and services ([14] Cohn et al. , 2000). Beyond price, e-RAs also reduce award cycle-time (up to 40 percent), increase bidding transparency , enhance price visibility, and improve operational performance ([5] Beall et al. , 2003; [38] Kaufmann and Carter, 2004; [48] Power et al. , 2010; [51] Schrader et al. , 2004; [53] Smart and Harrison, 2002). Given these results, it is not surprising that 31 percent of firms reported using e-RAs as one of their strategic sourcing strategies ([3] Amelinckx et al. , 2008).
ERA use has primarily been studied in the Asian, European, Latin American, and North American contexts ([35] Jap, 2002), as evidenced by [8] Caniels and van Raaij (2009). This study found a negative relationship between the gross domestic product of a supplier's home nation and that supplier's favorable view of e-RAs. However, the research did not explain empirically why suppliers from less developed nations hold stronger affinities for e-RAs.
Little attention is given to e-RA adoption and use in emerging markets, particularly in the Middle East and North Africa (MENA) region. Developing nations are often characterized as lacking structure to ensure business integrity. This omission suggests that the impact of e-RAs as a sustainable sourcing strategy in developing nations remains unknown. As e-RA use expands globally, cultural effects on e-RA success and failure suggests a compelling research area. Supply chain efficiency and effectiveness hinge on effective buyer-supplier relationships. Therefore, international buyers should know whether eRAs can be successfully integrated into sourcing practices in these developing markets.
Increasing global connectivity is providing a platform supporting e-RA expansion. This is particularly true in the MENA region, where there are an estimated 72 million internet users ([9] Central Intelligence Agency, 2012). Along with growth in connectivity, the economic growth in the MENA region is outpacing all other regions ([37] Kapur, 2009). According to the Economist Intelligence Unit's forecast, growth in the MENA region's 2008 GDP of $1.1 trillion hit 4.9 percent by 2012...