Negotiation is an important part of commerce. With the use of internet-based technologies to procure goods and services, the sourcing process of multiple goods or services usually involves complex negotiations. Advanced technologies such as e-procurement can facilitate effective solutions for negotiation between trading partners, however, in order to support business negotiations with electronic tools effectively, a deep understanding of real life business negotiation is required. This study is aim to explore the negotiation in the sourcing process in e-procurement network at the Australian Private Sectors. Two different companies which operated in the different market were selected to provide valuable information regarding the approach of negotiation in the sourcing process operated in e-procurement environment. Two cases study were conducted via interviews at the Manufacturing Car Company and the Aviation Company. The respondents included the Purchasing Managers and the suppliers for the companies. Actor Network Theory (ANT) will be used as guidance to explore this study. The significance of this study is to improve the value chain between partners in the sourcing process through the understanding and identifying social issues in electronic procurement negotiation. As such, it is hoped that greater success with e-procurement will be achieved.

Keywords: Negotiation, Sourcing Process, E-Procurement, Australian Private Sector, Actor Network Theory

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