The purpose of this paper is to attempt to shed light on procurement innovation by examining two state-of-the-art procurement systems in China – an agent-construction system (ACS or in Chinese Dai Jian Zhi) and public-private partnership (PPP), with special consideration given to the systems’ particular political, economic, social, technological, environmental, and legal (PESTEL) background.
The paper does so by using content analyses, semi-structured interviews, and a “PESTEL-Procurement Innovation” framework.
It is found that PPP has not been as popular as expected, while the ACS, which is little known to the international construction management community, is widespread in China. The study of ACS and PPP further reveals that congruence between a procurement system and its external PESTEL conditions is essential for procurement innovation.
The “PESTEL-Procurement Innovation” framework could be a useful tool for devising procurement innovation; although there are many questions yet to be answered by further research.
The paper provides useful insights into procurement innovation, particularly when governments worldwide are searching for innovative procurement systems to help deliver public projects and services.
The paper possesses originality in that it tackles procurement innovation, an area that is under researched in construction management. It exhorts the re-connection between a procurement system and its external PESTEL conditions for devising bona fide procurement innovations.
The paper was sponsored by the Seed Funding Programme for Basic Research (Project No. 201003159010) at the University of Hong Kong, HKSAR.
Weisheng, L., M.M. Liu, A., Hongdi, W. and Zhongbing, W. (2013), "Procurement innovation for public construction projects", Engineering, Construction and Architectural Management, Vol. 20 No. 6, pp. 543-562. https://doi.org/10.1108/ECAM-09-2011-0084Download as .RIS
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