Purpose
This paper aims to explore the possible scenarios after a failed reverse auction to continue a current buyer–seller relationship.
Design/methodology/approach
The authors developed a further understanding of reverse auctions through the examination of a longitudinal case study in the mining industry based on grounded theory.
Findings
The study indicates that losing a reverse auction is not a death sentence for the current supplier. Four factors influence the potential scenarios: buyer factors, supplier factors, buyer–seller factors and contextual factors. If the overall evaluation favors the current buyer–seller relationship, the supplier can continue the business interaction by full renegotiation or discrete step-by-step reconsideration. Conversely, the buyer–seller relationship would reach a state of dissolution.
Originality/value
This manuscript contributes to the understanding of reverse auction, an under-researched theme in organizational buying behavior theory. This paper is the first attempt to link buyer–seller relationship dissolution and reverse auctions. The authors suggest that more academic endeavors are needed to study online reverse auctions.
