Considering how e-procurement implementation influences governance structures, we found evidence of reduced search costs leading to increased supply availability, and hence greater leverage in negotiation. We also saw an increased level of communication driving knowledge sharing between customers and suppliers. Therefore, rather than see a move towards increased market-based relationships (Barratt and Rosdahl, 2002), we found that e-procurement tends to reinforce existing hierarchical relationships among firms (Brousseau, 1990).