Analysis of Functionalities of Commercial Websites Used for Procurement: Implications on Design and Operations

Abstract

This research analyzes the functionalities of commercial websites used for electronic procurement and links them with the benefits as perceived by users and with relevant business processes. Data Envelopment Analysis (DEA) is used on data collected from 88 corporate buyers working in a wide range of industries and using the World Wide Web to support the procurement process to show that adding advanced functionalities to informational websites can reduce their efficiency, which suggest that commercial websites are more often used to reduce buyers ’ search costs than their processing costs. Possible explanations and implications of such findings on the design of commercial websites used for business-to-business transactions and on operations for both vendors and buyers are discussed.

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