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1 – 10 of 131Anna Kadefors, Kirsi Aaltonen, Stefan Christoffer Gottlieb, Ole Jonny Klakegg, Pertti Lahdenperä, Nils O.E. Olsson, Lilly Rosander and Christian Thuesen
Relational contracting is increasingly being applied to complex and uncertain construction projects. However, it has proved hard to achieve stable performance and industry-level…
Abstract
Purpose
Relational contracting is increasingly being applied to complex and uncertain construction projects. However, it has proved hard to achieve stable performance and industry-level learning in this field. This paper employs an institutional perspective to analyze how legitimacy for relational contracting has been produced and challenged in Denmark, Finland, Norway and Sweden, including implications for dissemination and learning.
Design/methodology/approach
A collaborative case study design is used, where longitudinal accounts of the developments in relational contracting over more than 25 years in four Nordic countries were developed by scholars based in each country. The descriptions are underpinned by literature sources from research, practice and policy.
Findings
The countries share similar problem perceptions that have triggered the de-institutionalization of traditional contracting practices. Models and policies developed elsewhere are important sources of knowledge and legitimacy. Most countries have seen pendulum movements, where dissemination of relational contracting is followed by backlashes when projects fail to meet projected outcomes. Before long, however, relational contracting tends to re-emerge under new labels and in slightly new forms. Such a proliferation of concepts presents further obstacles to learning. Successful institutionalization is found to rely on realistic goals in combination with broad competence development at the organizational and industry levels.
Practical implications
In seeking inspiration from other countries, policymakers should go beyond contract models to also consider strategies to manage industry-level learning.
Originality/value
The paper provides a unique longitudinal cross-country perspective on the field of relational contracting. As such, it contributes to the small stream of literature on long-term institutional change in the construction sector.
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Moses Muhwezi, Henry Mutebi, Samuel Ssekajja Mayanja, Benjamin Tukamuhabwa, Sheila Namagembe and Robert Kalema
Procuring relief products and services is a challenging process for humanitarian organizations (HOs), yet it accounts for approximately 65% of relief operations’ costs (Moshtari…
Abstract
Purpose
Procuring relief products and services is a challenging process for humanitarian organizations (HOs), yet it accounts for approximately 65% of relief operations’ costs (Moshtari et al., 2021). This paper aims to examine how procurement internal controls, materials and purchasing procedure standardization influence information integration and procurement performance.
Design/methodology/approach
In this study, partial least square structural equation models and multigroup analysis were used to analyze data collected from 170 HOs.
Findings
Procurement internal controls and material and purchasing procedure standardization fully mediate between information integration and procurement performance.
Research limitations/implications
The study focuses only on HOs. Since humanitarian procurement projects take place over a period of several years, it is difficult to capture the long-term effects of information integration, procurement internal controls, material and purchasing procedure standardization and procurement performance. In this regard, a longitudinal study could be undertaken, provided that the required resources are available.
Practical implications
Procurement managers should implement information integration practices within acceptable procurement internal controls and standardize material and purchasing procedures to boost procurement performance.
Originality/value
By integrating information through procurement internal controls and standardizing material and purchasing procedures, procurement performance in a humanitarian setting can be systematically optimized.
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A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims…
Abstract
Purpose
A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).
Design/methodology/approach
This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.
Findings
Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.
Research limitations/implications
The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.
Practical implications
The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.
Originality/value
The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.
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Siraj Ahmed, Jukka Majava and Kirsi Aaltonen
The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE…
Abstract
Purpose
The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE implementation in construction projects.
Design/methodology/approach
A qualitative research approach with abductive reasoning was adopted. The empirical data were collected from the construction industry in the United Arab Emirates (UAE).
Findings
The results reveal that clients, consultants and contractors have limited awareness, knowledge and motivation to implement CE in construction projects. The absence of incentives to design projects following CE principles, lack of involvement of contractors and suppliers, non-use of materials that use CE principles and current procurement strategies are the main challenges for the implementation of CE in the UAE.
Originality/value
Previous research offers limited knowledge on CE and its implementation in construction projects particularly from a procurement strategy perspective. The findings of the study provide new knowledge of the benefits, challenges and role of procurement strategy for implementing CE. It is suggested that collaborative and partnering-based procurement methods are needed to facilitate the effective implementation of CE.
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Aleksi Harju, Jukka Hallikas, Mika Immonen and Katrina Lintukangas
The purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and…
Abstract
Purpose
The purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and improving SC resilience (SCRES).
Design/methodology/approach
Based on survey data collected from the procurement functions of 147 Finnish firms, this study conceptualizes data analytics, information sharing and procurement process digitalization as drivers of procurement digitalization and investigates their impact on SC risk management and SCRES by using partial least squares path modeling.
Findings
Procurement digitalization through data analytics and digital process maturity requires effective information sharing among SC partners and SC risk management to be able to improve SCRES. Procurement digitalization increases information-processing capacities and reduces uncertainty in the SC.
Originality/value
This study contributes to the understanding on the relationships between procurement digitalization and SCRES.
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Luís Jacques de Sousa, João Poças Martins and Luís Sanhudo
Factors like bid price, submission time, and number of bidders influence the procurement process in public projects. These factors and the award criteria may impact the project’s…
Abstract
Purpose
Factors like bid price, submission time, and number of bidders influence the procurement process in public projects. These factors and the award criteria may impact the project’s financial compliance. Predicting budget compliance in construction projects has been traditionally challenging, but Machine Learning (ML) techniques have revolutionised estimations.
Design/methodology/approach
In this study, Portuguese Public Procurement Data (PPPData) was utilised as the model’s input. Notably, this dataset exhibited a substantial imbalance in the target feature. To address this issue, the study evaluated three distinct data balancing techniques: oversampling, undersampling, and the SMOTE method. Next, a comprehensive feature selection process was conducted, leading to the testing of five different algorithms for forecasting budget compliance. Finally, a secondary test was conducted, refining the features to include only those elements that procurement technicians can modify while also considering the two most accurate predictors identified in the previous test.
Findings
The findings indicate that employing the SMOTE method on the scraped data can achieve a balanced dataset. Furthermore, the results demonstrate that the Adam ANN algorithm outperformed others, boasting a precision rate of 68.1%.
Practical implications
The model can aid procurement technicians during the tendering phase by using historical data and analogous projects to predict performance.
Social implications
Although the study reveals that ML algorithms cannot accurately predict budget compliance using procurement data, they can still provide project owners with insights into the most suitable criteria, aiding decision-making. Further research should assess the model’s impact and capacity within the procurement workflow.
Originality/value
Previous research predominantly focused on forecasting budgets by leveraging data from the private construction execution phase. While some investigations incorporated procurement data, this study distinguishes itself by using an imbalanced dataset and anticipating compliance rather than predicting budgetary figures. The model predicts budget compliance by analysing qualitative and quantitative characteristics of public project contracts. The research paper explores various model architectures and data treatment techniques to develop a model to assist the Client in tender definition.
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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…
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.
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Kari-Pekka Tampio, Harri Haapasalo and Jere Lehtinen
The research problem in this study is how a client (as a project owner) should organise early stakeholder involvement and integration in the front-end phase of a project. This…
Abstract
Purpose
The research problem in this study is how a client (as a project owner) should organise early stakeholder involvement and integration in the front-end phase of a project. This study aims to create normative managerial statements as propositions from the client's perspective and to combine them into a set of activities enabling efficient organisation in the front-end phase of a hospital construction project.
Design/methodology/approach
Action design research (ADR) was carried out in a large hospital construction project where the first author acted as an “involved researcher” and the other authors acted as “outside researchers”.
Findings
The authors created seven normative managerial propositions that were verified by the case project stakeholders and developed a managerial framework describing the client's essential stakeholder involvement and integration activities in the front-end phase of a hospital construction project based on these propositions. The authors have also depicted the subphases of the front-end phase: value definition phase in the client permanent organisation, value proposition phase in the client Programme Management Office (PMO) and finally development phase in the alliance organisation ending on the final investment decision.
Practical implications
The collaborative contract delivery model enables the early involvement and integration of stakeholders. It has been somewhat surprising to note the extent to which collaborative contracts change the client role in the project front-end. The results offer practical activities for how clients can manage front-end activities in collaborative contracts.
Originality/value
The case project offered a platform to analyse how the collaborative contract delivery model changes the emphasis of activities in the front-end of a project. One of the key benefits of collaborative contracts is that development, design and delivery occur partially in parallel, thereby enabling contributions from production to be included in the design and development. The benefit of having a real-life case under study provides the possibility to triangulate and analyse rich data, however limited by the qualitative case method.
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Anna-Therése Järvenpää, Johan Larsson and Per Erik Eriksson
This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.
Abstract
Purpose
This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.
Design/methodology/approach
Semi-structured interviews about six infrastructure projects were conducted to identify respondents’ views on innovation possibilities. These possibilities were then analyzed from an organizational control perspective within principal–agent relationships between the Swedish Transport Administration (STA) and their contractors.
Findings
How the client uses control systems affects innovation possibilities. Relying on process control could negatively affect innovation opportunities, whereas output control could have a positive influence. In addition, social control seems to have a weak effect, as the STA appears not to use social control to facilitate joint innovation. Public clients must comply with the Public Procurement Act and, therefore, retain the requirements specified in the tendering documents. Much of the steering of the execution is connected to the ex ante phase (before signing the contract), which affects innovation possibilities in the design and execution phases for the contractor.
Research limitations/implications
This study was conducted with only one client, thus limiting its generalizability. However, the findings provide an important stepping stone to further investigation into balancing control systems and creating innovation possibilities in a principal–agent relationship.
Originality/value
Although public procurement has increasingly been emphasized as a major potential source of innovation, studying how a public client’s use of organizational control systems affects innovation possibilities in the construction sector has received scant attention.
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Jad EL Bizri, Elina Karttunen and Katrina Lintukangas
This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related…
Abstract
Purpose
This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance.
Design/methodology/approach
A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance.
Findings
The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process.
Practical implications
Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement.
Social implications
Improving social dynamics and solutions in public procurement.
Originality/value
This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.
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