This level of information control poses a strong set of requirements for the ideal digital infrastructure for online auctions. The outcome of an auction is down to ensuring the correct mix of public and private coordination of bids and other information. Fortunately, the blockchain ecosystem has established a strong use case for new auction solutions and the answer lies in strengthening the legitimacy of digital auctions.Īn auction’s trading rules define how information is shared and what information is kept confidential (e.g., sealed bids) or shared among participants (e.g., open bids). The long-term impact of this is unknown but, without scarcity, the value of any given digital asset could plummet.įinding the correct price for a commodity can prove to be a significant challenge, particularly in an increasingly digital and interconnected world where substitute goods can often be seemingly endless. While traditional exchanges play a major role in defining the market price, recent NFT ventures have made attempts to align digital commodities with physical commodities. By implementing the correct infrastructure and ensuring sufficient automation, the uptake of advanced auctions may add significant value to both markets and industries. The high level of control offered by this trading engagement opens the door to resolving certain issues within a market by designing the auction rules to suit the specific marketplace. This record-breaking auction comes as no surprise following the recent explosion around non-fungible tokens or NFTs.Īuctions are beholden to a set of well-specified trading rules, which facilitates a pure marketplace at work in its most basic form. Earlier this year the first-ever digital only artwork at Christie’s closed for a staggering $69m. Today, the ancient institution that has shaped the trading practices of modern-day society continues to reinvent itself. History provides evidence as far back as 500 BC in Babylon by the Romans. This study has implications for understanding how regionally specific cultural variables impact B2B sourcing strategy adoption and outcomes.Auctions have stood the test of time. As economic growth in MENA is expected to outpace all other regions, This study unveils cultural idiosyncrasies where e-RAs overcome a moral hazard associated with MENA buyer-supplier relationships and become a supplier's favored sourcing medium. Originality/value ‐ E-RAs haveīeen criticized as being unfair to suppliers. It demonstrated that e-RAs can ameliorate some of the deleterious effects of wasta by increasing transparency and procedural fairness associated with MENA-based buyer-supplier relationships. Findings ‐ This case study extends knowledge in the area of global supply chain management by identifying new opportunitiesĪnd providing a mechanism to ameliorate risks. Of a unique phenomenon in Middle Eastern culture called wasta and (3) how wasta, e-RA use, and procurement integrity interact in a sustainable way. Design/methodology/approach ‐ The authors use a case study method based on data collected from 13 interviews with supply chain members extending beyond the dyad to explain: why Middle Eastern bidders participated in an e-RA the nature The purpose of this research was to explore whether and, if so, how electronic reverse auction (e-RA) use mightīe effective in a MENA national culture. Technology-enhanced business processes diffuse as globalization increases. Influenced by " wasta" ‐ a term associated with power, influence, connection and corruption. In the Middle East and North Africa (MENA) region, buyer-supplier relationships are often negatively Business in these developing nations is heavily influenced by national culture. Purpose ‐ The growth of international business persists, particularly in emerging economies.
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