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Article
Publication date: 13 January 2021

Harri Lorentz, Anna Aminoff, Riikka Kaipia and Jagjit Singh Srai

The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the…

2969

Abstract

Purpose

The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables.

Design/methodology/approach

The study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach.

Findings

Results suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation.

Practical implications

The study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation.

Originality/value

A novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.

Details

International Journal of Operations & Production Management, vol. 41 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 10 March 2023

Sini Laari, Harri Lorentz, Patrik Jonsson and Roger Lindau

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is…

2850

Abstract

Purpose

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.

Design/methodology/approach

This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.

Findings

Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.

Practical implications

The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.

Originality/value

The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.

Details

International Journal of Operations & Production Management, vol. 43 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Abstract

Purpose

Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts is limited. This paper aims to explain and conceptualise recent Romanian experience with developing bespoke competency frameworks at national level for public procurement that reflect the features of the Romanian public procurement system. The approach used could guide in broad-brush, mutatis mutandis, other (national) public procurement systems with comparable features, mainly those seeking a shift from a rather administrative function of public procurement towards a strategic function.

Design/methodology/approach

This case study reflects on the methodology used for analysing the Romanian public procurement environment in EU context to develop bespoke professionalisation instruments, and on ways to integrate competency management approaches in Romanian public procurement culture. That methodological mix has been mainly qualitative and constructionist, within an applied research approach. It combined desk research with empirical research and included legal research in this context.

Findings

A principled, methodological and pragmatic approach tailored to the procurement environment in question is essential for developing competency frameworks capable to resonate to and address the specific practical needs of that procurement system.

Social implications

Competency frameworks can uphold societal objectives through public procurement.

Originality/value

Using valuable insights into the development of the Romanian public procurement competency frameworks, the paper provides a conceptual framework for instilling competency management approaches to public procurement professional development where the latter is governed by a rather distinct, public administration, paradigm. This conceptual framework can guide other public procurement systems and stimulate further research.

Article
Publication date: 1 October 2019

Dothang Truong

Despite the important role of distrust in predicting the intention to use, existing literature has not studied the impact of distrust on the buyer’s integration with suppliers and…

1065

Abstract

Purpose

Despite the important role of distrust in predicting the intention to use, existing literature has not studied the impact of distrust on the buyer’s integration with suppliers and their e-procurement usage in the B2B context, creating major gaps in the e-procurement theory. The purpose of this paper is to fill the gaps in the literature by examining the role and impact of distrust in the e-procurement context.

Design/methodology/approach

Data were collected through a web-based survey of purchasing professionals in the USA. ANOVA was used to compare the level of distrust among companies. In addition, the measurement model and hypotheses were tested using the structural equation modeling method.

Findings

Empirical findings indicate if buyers have uncertainty or negative expectation on the reliability and capability of the supplier in e-procurement systems, they would tend to hesitate to use e-procurement for purchasing. Furthermore, distrust also inhibits buyers from strengthening the supplier integration through sharing operational and logistics information and collaborating in new product development and purchasing process.

Research limitations/implications

This paper discovers the vital role of distrust in the e-procurement context. Distrust has a significant impact on a company’s cooperation and commitment with business partners. Additionally, to improve the supplier integration, it is important not only to use e-procurement applications but also to have a mechanism to lower the buyers’ distrust level in e-procurement systems.

Practical implications

Realizing the important role of distrust, e-procurement vendors could improve the supplier selection process by allowing buyers to review the supplier’s reliability and capability, and to interact with the supplier before making any online purchase. Vendors could also build a better supplier verification system and collaborative mechanism to reduce buyers’ distrust issues.

Originality/value

Despite the important role of distrust in predicting the intention to use, existing literature has not studied the impact of distrust on the buyer’s integration with suppliers and their e-procurement usage in the B2B context, creating major gaps in the e-procurement theory. This paper fills the gaps in the literature by examining the role and impact of distrust in the e-procurement context.

Details

Journal of Enterprise Information Management, vol. 32 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 29 April 2020

Lisa Melander and Ala Pazirandeh Arvidsson

The purpose of this paper is to discuss how a seller can use interactions to respond to public procurement needs for innovation when the buying side is restricted by public…

Abstract

Purpose

The purpose of this paper is to discuss how a seller can use interactions to respond to public procurement needs for innovation when the buying side is restricted by public procurement regulations.

Design/methodology/approach

The authors collected data using qualitative semi-structured interviews of different empirical examples, in which private–public interactions of four different high-technological products are studied. Two products belong to the defence industry and two to the civil industry.

Findings

The findings point to three types of innovations in public procurement: product, service and business model. The empirical examples further indicate, as suggested in previous studies, that innovation is hindered by regulations that limit interaction between suppliers and the public. In addition, the empirical examples indicate that firms mobilize actors in their network when the buyer is restricted in regard to interaction. The findings also add to the IMP literature by comparing interactions in the three types of innovations in the public procurement context.

Originality/value

Public procurement is an area where innovations are lagging behind, compared with private procurement. Research points to limited interaction between actors as an obstacle to innovation in public sector collaborations. This paper extends the literature on how organizations interact in the setting of public procurement. The authors identify demand and supply triggers for three types of innovations: product, service and business model innovation.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 6 October 2020

Karen Lorraine Wontner, Helen Walker, Irina Harris and Jane Lynch

This study aims to illuminate the challenges involved in implementing community benefits (CBs), a sustainable public procurement policy that ensures that there are positive social…

1682

Abstract

Purpose

This study aims to illuminate the challenges involved in implementing community benefits (CBs), a sustainable public procurement policy that ensures that there are positive social and economic outcomes for the local community when public money is spent on goods, works and services.

Design/methodology/approach

Interviews and focus groups were conducted with public sector buyers and suppliers in Wales with experience in implementing CBs. Resource dependence theory was used to examine the extent to which dependence on resources effects CBs implementation.

Findings

Whilst the study confirms that implementation of CBs improves economic and social outcomes, there can also be challenges for public sector organisations and their constituent supply chains. These include tensions between CBs and other policies, differing views between buyers and suppliers, and the unintended consequences of promoting one form of CBs over another.

Research limitations/implications

The research found that Welsh Government influences the buyer-supplier dyad through regulatory and financial power. We elaborate on resource dependency theory by adding four constructs (powerful stakeholders, intra and inter organisational issues, challenges and enablers) to better understand the flows of power and resources in this research context.

Practical implications

Buyer and supplier practitioners and policymakers may find the factors leading to successful CBs implementation useful, such as ensuring closer communication and liaison at early contract stages.

Social implications

Community benefits are aimed at improving socioeconomic issues through public procurement.

Originality/value

This study addresses the need for research into how public sector organisations and suppliers seek to implement socio-economic sustainability measures, and the lack of research on CBs implementation to date. It is also novel in adopting a dyadic approach and a resource dependency perspective.

Details

International Journal of Operations & Production Management, vol. 40 no. 12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 2 April 2024

Rick Forster, Andrew Lyons, Nigel Caldwell, Jennifer Davies and Hossein Sharifi

The study sets out to demonstrate how a lifecycle perspective on complex, public-sector procurement projects can be used for making qualitative assessments of procurement policy…

Abstract

Purpose

The study sets out to demonstrate how a lifecycle perspective on complex, public-sector procurement projects can be used for making qualitative assessments of procurement policy and practice and reveal those procurement capabilities that are most impactful for operating effectively.

Design/methodology/approach

Agency theory, institutional theory and the lifecycle analysis technique are combined to abductively develop a framework to identify, analyse and compare complex procurement policies and practices in public sector organisations. Defence is the focal case and is compared with cases in the Nuclear, Local Government and Health sectors.

Findings

The study provides a framework for undertaking a lifecycle analysis to understand the challenges and capabilities of complex, public-sector buyers. Eighteen hierarchically-arranged themes are identified and used in conjunction with agency theory and institutional theory to explain complex procurement policy and practice variation in some of the UK’s highest-profile public buyers. The study findings provide a classification of complex buyers and offer valuable guidance for practitioners and researchers navigating complex procurement contexts.

Originality/value

The lifecycle approach proposed is a new research tool providing a bespoke application of theory by considering each lifecycle phase as an individual but related element that is governed by unique institutional pressures and principal-agent relationships.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 2 April 2024

Șerban Filipon and Violeta Simionescu

Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts

Abstract

Purpose

Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts is limited. This paper aims to explain and conceptualise recent Romanian experience with developing bespoke competency frameworks at national level for public procurement that reflect the features of the Romanian public procurement system. The approach used could guide in broad-brush, mutatis mutandis, other (national) public procurement systems with comparable features, mainly those seeking a shift from a rather administrative function of public procurement towards a strategic function.

Design/methodology/approach

This case study reflects on the methodology used for analysing the Romanian public procurement environment in EU context to develop bespoke professionalisation instruments, and on ways to integrate competency management approaches in Romanian public procurement culture. That methodological mix has been mainly qualitative and constructionist, within an applied research approach. It combined desk research with empirical research and included legal research in this context.

Findings

A principled, methodological and pragmatic approach tailored to the procurement environment in question is essential for developing competency frameworks capable to resonate to and address the specific practical needs of that procurement system.

Social implications

Competency frameworks can uphold societal objectives through public procurement.

Originality/value

Using valuable insights into the development of the Romanian public procurement competency frameworks, the paper provides a conceptual framework for instilling competency management approaches to public procurement professional development where the latter is governed by a rather distinct, public administration, paradigm. This conceptual framework can guide other public procurement systems and stimulate further research.

Article
Publication date: 19 June 2009

Daniel Forgues and Lauri Koskela

The purpose of the paper is to study the influence of procurement on the performance of integrated design teams.

5735

Abstract

Purpose

The purpose of the paper is to study the influence of procurement on the performance of integrated design teams.

Design/methodology/approach

The research paradigm is based on Russian socio‐constructivist approach to activity theory. Activity theory, as opposed to natural or social science, is a design science approach that focuses on the context aspect of project. A triangulation of qualitative research methods is used to investigate the dynamic of integrated teams in two different procurement contexts.

Findings

The paper is conclusive regarding the influence of procurement on team efficiency. It demonstrates that traditional procurement processes reinforce socio‐cognitive barriers that hinder team efficiency. It also illustrates how new procurement modes can transform the dynamic of relationships between the client and the members of the supply chain, and have a positive impact on team performance.

Practical implications

The paper demonstrates first that problems with integrated design team efficiency are related to context and not process – they are not technical but socio‐cognitive; second that fragmented transactional contracting increases socio‐cognitive barriers that hinder integrated design team performance; third that new forms of relational contracting may help to mitigate socio‐cognitive barriers and improve integrated design team performance, fourth that changing the context through procurement does not address the problem of obsolete design practices.

Originality/value

The paper brings together theories of production in lean construction and social learning as a rival approach to traditional project management theory for demonstrating the importance of context on team performance.

Details

International Journal of Managing Projects in Business, vol. 2 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

Open Access
Article
Publication date: 19 October 2022

Ismail Juma Ismail and Ismail Abdi Changalima

Over time, the concept of word of mouth (WOM) has spread beyond marketing into other disciplines. This is because WOM is important in decision-making…

1447

Abstract

Purpose

Over time, the concept of word of mouth (WOM) has spread beyond marketing into other disciplines. This is because WOM is important in decision-making at both the individual and organisational levels. Also, people are more likely to trust recommendations from their peers than those from companies. Therefore, the purpose of this study is to investigate the perceived usefulness of WOM messages for small and medium-sized enterprise (SME) suppliers in participating in Tanzanian public procurement opportunities.

Design/methodology/approach

The study collected cross-sectional data from 214 SME suppliers who supply common use items to public procuring organisations in Dodoma City, Tanzania. Structural equation modelling was used to test the direct relationships between study variables, and Hayes' PROCESS macro was used to test for the indirect effect of WOM message delivery on WOM attributes and the perceived usefulness of WOM.

Findings

WOM attributes that include expertise differential, perceptual homophily, and trustworthiness are related to the perceived usefulness of WOM. Also, WOM message delivery mediates the relationship between the WOM attributes and the perceived usefulness of WOM in enhancing public procurement participation. Therefore, the study's findings revealed that WOM is applicable in the public procurement context, under which public buyers act as senders and suppliers act as receivers. The latter finds out about public procurement opportunities and responds to them, while the former gives suppliers whatever information they need to respond to public procurement tenders that have been advertised.

Research limitations/implications

Because the study was cross-sectional, it was difficult to determine whether the opinions gathered over time remained consistent. Furthermore, only suppliers who are parties to framework contracts under Government Procurement Services Agency were included in the study. Therefore, the sample was limited to only suppliers supplying common use items to various public organisations in Dodoma City, Tanzania.

Originality/value

This paper integrates the concept of WOM from the marketing discipline and public procurement. As a result, the study adds to the understanding of the use of information transmission in terms of the contribution of WOM messages from public buyers to suppliers to enhance small and medium enterprises' participation in public procurement opportunities.

1 – 10 of over 19000