Procurement innovation for public construction projects

Lu Weisheng (Department of Real Estate and Construction, The University of Hong Kong, Pokfulam, Hong Kong)
Anita M.M. Liu (Department of Real Estate and Construction, The University of Hong Kong, Pokfulam, Hong Kong)
Wang Hongdi (Department of Real Estate and Construction, The University of Hong Kong, Pokfulam, Hong Kong)
Wu Zhongbing (School of Economic and Management, Beijing Jiaotong University, Beijing, China)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Publication date: 11 November 2013

Abstract

Purpose

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.

Design/methodology/approach

The paper does so by using content analyses, semi-structured interviews, and a “PESTEL-Procurement Innovation” framework.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Keywords

Acknowledgements

The paper was sponsored by the Seed Funding Programme for Basic Research (Project No. 201003159010) at the University of Hong Kong, HKSAR.

Citation

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-09-2011-0084

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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