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Article
Publication date: 6 November 2018

Karem Sayed Aboelazm and Attia Afandy

The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages…

Abstract

Purpose

The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages of each method and the two methods of public procurement applied in the Arab Republic of Egypt in an attempt to overcome the disadvantages of the Egyptian system; and introduce a new framework for government procurement in Egypt.

Design/methodology/approach

The descriptive approach was used in the framework of the presentation and analysis of the concepts of centralized public procurement and decentralized public procurement. The comparative approach was used for presenting some of the experiences of countries in using public procurement methods. The legal approach was also used in the analysis of the legal frameworks governing the public procurement methods in the Arab Republic of Egypt. In addition, the case study methodology was used to study the role of the General Authority for Governmental Services in Egypt in the centralized public procurement processes.

Findings

This paper attempts to find the ideal method of public procurement in general and what is the method to be followed in the Egyptian case through the data presented and analysis of the Egyptian public procurement system.

Research limitations/implications

This paper attempts to present a model or a theory on how to determine the public procurement methods that should be used in a given country and give sufficient flexibility for the conformity between the two methods upon application depending on the ecological factors of each country.

Practical implications

This paper contributes to the development of the public procurement method in the Arab Republic of Egypt by showing the gap between the use of the centralized approach and the decentralized approach at all levels and providing solutions to bridge this gap.

Social implications

This paper provides implications to reduce corruption, increase transparency and give the opportunity to the largest number of private shareholders to participate in public procurement.

Originality/value

Although there is some literature on centralized and decentralized public procurement, there is a lack or scarcity of research and academic articles on this subject (Patrucco et al., 2017). This paper attempted to do so by filling this gap in this area of research.

Details

Journal of Advances in Management Research, vol. 16 no. 3
Type: Research Article
ISSN: 0972-7981

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Article
Publication date: 30 August 2019

Yang Wang, Jing Liu, Jian Zuo and Raufdeen Rameezdeen

The purpose of this paper is to investigate driving factors that improve the project management efficiency (PME) in centralized public procurement systems.

Abstract

Purpose

The purpose of this paper is to investigate driving factors that improve the project management efficiency (PME) in centralized public procurement systems.

Design/methodology/approach

Employees in four public-sector organizations in China were surveyed. The structural equation modeling was employed to examine the relationship amongst those variables.

Findings

Organizational culture (OC) is an effective method to improve PME, and employee quality is the most critical factor of OC in this system. Job satisfaction (JS) is another significant contributor to PME and satisfaction with fairness of salary in this system being the key factor of JS. Job analysis (JA) has indirect influence on PME through JS and OC, whereas the job structure in this system is the most critical factor for JA.

Practical implications

An operational way to improve PME is to implement it from the perspectives of employee, organization and technique. At the organizational level, it is imperative to strengthen the OC by a well-structured recruitment system and to improve PME via well-design training. At the person level, both financial (i.e. income and welfare) and career incentives (i.e. promotion opportunities and a sense of belonging) are proposed to achieve employees’ JS to improve PME. At the technique level, JA approach (i.e. job rotation) is recommended to enlarge the positive influence of OC and JS on PME. These can not only ensure the management professionalism in a centralized public procurement system but can also motivate employees and maximize PME.

Originality/value

PME in a centralized public procurement system will be improved by addressing these key factors and their interrelationships. This provides detailed pathways for the centralized public procurement system to achieve better PME via optimal OC and JS and reasonable JA in China. In addition, the institutional and administrative traditions may vary significantly across cities, regions and countries. Therefore, such contextual differences should be taken into consideration for the improvement of PME in a centralized public procurement system.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 1
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 1 April 2017

Andreas H. Glas, Markus Schaupp and Michael Essig

In the EU and especially in Germany, public procurement is bound to a tight legislation that also sets and enforces strategic goals such as innovation or sustainability…

Abstract

In the EU and especially in Germany, public procurement is bound to a tight legislation that also sets and enforces strategic goals such as innovation or sustainability. The purpose of this paper is to analyze whether different archetypes of public procurement organizations (centralized or decentralized; state-level or local-level) perceive and implement strategic goals differently. A survey with data from 104 entities is used for this purpose. The findings reveal that the implementation of strategy is different in centralized or state-level organizations compared with decentralized or local organizations. Centralized organizations give goals such as innovation, transparency, and sustainability a high priority, while local ones highlight regional development and SME support

Details

Journal of Public Procurement, vol. 17 no. 4
Type: Research Article
ISSN: 1535-0118

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Book part
Publication date: 25 February 2018

Naushad Khan

Abstract

Details

Public Procurement Fundamentals
Type: Book
ISBN: 978-1-78754-608-0

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Article
Publication date: 4 June 2018

Thuso Mphela and John P.W. Shunda

The paper aims to investigate challenges facing small-, medium- and micro-sized enterprises (SMMEs) in public procurement in Botswana from the view of a buyer.

Abstract

Purpose

The paper aims to investigate challenges facing small-, medium- and micro-sized enterprises (SMMEs) in public procurement in Botswana from the view of a buyer.

Design/methodology/approach

The researchers conducted consultative workshops, succeeded by focus groups and follow-up telephone interviews, to collect and validate data. A total of 75 procurement officers from central government ministries and local governments participated in the study.

Findings

Results indicate that SMMEs find it difficult to deal with public procurement because of lack of capacity, unfair bias against SMMEs, inefficient government payment systems, unfair competition from their larger and established counterparts and centralized public procurement. The paper recommends a comprehensive integrated framework, improvement of SMME capacity and adopting policies to ensure greater public procurement market access.

Details

Journal of Public Procurement, vol. 18 no. 2
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 1 March 2015

Giotopoulos ***, Grigoris Pavlou, Svetoslav Danchev and Aggelos Tsakanikas

During the recent economic crisis, public procurement reforms have received a great attention as a key mechanism that enables significant cost savings and improves…

Abstract

During the recent economic crisis, public procurement reforms have received a great attention as a key mechanism that enables significant cost savings and improves transparency in the public sector, particularly in countries which are under a process of extensive fiscal consolidation like Greece. This paper examines the effects of improved transparency on public procurement cost in the light of the ongoing structural reforms taking place in Greece. The basic finding indicates that ensuring transparent practices in public procurement processes reduces government expenditures by about 1.8 - 3.4 percentage points. A dataset on 2309 public supply contracts for goods was used, supplementing the pooled OLS estimates with quantile regressions.

Details

Journal of Public Procurement, vol. 15 no. 4
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 15 June 2020

Lela Mélon and Rok Spruk

Because of the renewed interest in public purchasing and the strategic use of public funds under the requirements of sustainable development, the question arose once again…

Abstract

Purpose

Because of the renewed interest in public purchasing and the strategic use of public funds under the requirements of sustainable development, the question arose once again as to how to curb the fall of institutional quality once criteria other than price are inserted into the decision-making in public purchasing. E-procurement has been repeatedly named as one of the most efficient tools to that effect and the present paper sets out to discover whether the implementation of e-procurement in a particular country per se entails also higher institutional quality, allowing for a wider implementation of green and sustainable procurement at the national, regional and municipal level without the fear of worsening the country’s institutional quality. By analyzing the implementation of e-procurement in Denmark, the Netherlands and in Portugal, this paper aims to verify the hypothesis that the implementation of e-procurement implies better institutions in terms of public purchasing. As such, the conclusions will be used in further research on the prerequisites for a successful implementation of green public procurement across the European Union.

Design/methodology/approach

Gathering data on institutional quality of three early e-procurement adopters (Denmark, the Netherlands and Portugal) allows for comparison of institutional quality pre- and post-e-procurement implementation. By using difference-in-differences comparison the paper seeks to answer the question how doesmandatory e-procurement influence institutional quality on the national level.

Findings

The paper finds that the reform is generally associated with a relatively stronger control of corruption in the Netherlands and Denmark, while a similar reform in Portugal failed to translate into a stronger control of corruption. Furthermore, while using the quality of regulation as a dependent variable, a positive and robust effect on the quality of regulation in Denmark was shown, while the quality of reputation in the Netherlands and Portugal declined in the post-reform period, with the drop in the quality of regulation in Portugal being considerably greater, a two-fold higher amount than the estimated drop in the Netherlands. The paper suggests that in spite of the same aims, the reform yielded substantially different or even opposing effects compared to Denmark.

Research limitations/implications

By examining three examples of early adopters, further research with broader impact is needed to deduce general implications for e-procurement implementation. Furthermore, implementation of e-procurement at the regional or local level can also yield distinct results.

Social implications

Understanding the actual impact of e-procurement on institutional quality is indispensable for further study on the matter. The present study argues that e-procurement needs to be accompanied by additional measures or variables to yield a positive impact on institutional quality in public procurement.

Originality/value

As to originality, the present paper uses a law and economics approach, originating or better said drawing motivation from green public procurement concerns, trying to provide an insight in terms of tools that can be used to eliminate concerns regarding institutional quality when implementing green public procurement practices.

Details

Journal of Public Procurement, vol. 20 no. 4
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 8 June 2020

Carmela Di Mauro, Alessandro Ancarani and Tara Hartley

This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and…

Abstract

Purpose

This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and supporting factors of MSMEs’ participation and success in public tenders.

Design/methodology/approach

The empirical analysis builds on a unique survey run by the Canadian federal government, which addressed firms either participating or not participating in public tenders. Model estimation on the survey data relies on sample selection methodologies, which allow separating determinants of MSMEs’ decision to participate from determinants of success.

Findings

Results provide evidence that costs stemming from asset specificity and uncertainty (e.g. costs of bidding, requirements for participation, bundling of contracts and award rules based on minimum price) affect participation in public procurement. Within MSMEs, micro-firms are the most discouraged from participating. However, after controlling for factors affecting participation, micro-firms emerge as having a higher success rate, possibly because of high specialization and joint participation with larger firms.

Research limitations/implications

Because of the cross-sectional nature of the data used for hypotheses testing, endogeneity may arise if ex post variables affect ex ante decisions. This may apply if participation in procurement feeds on success in past tenders.

Social implications

Findings may inform policies for the inclusion of smaller firms in the public marketplace.

Originality/value

To the best of the authors’ knowledge, this study is the first attempting to disentangle determinants of participation in public tenders from determinants of success. Separating the two aspects helps fine-tune SME-friendly public procurement policies, by identifying actions that effectively facilitate success of MSMEs in public tenders.

Details

Journal of Public Procurement, vol. 20 no. 4
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 4 June 2018

Mehran Sepehri and Mohsen Qadiri

This study aim to examine the roots of professional resistance of procurement in Iran. Public procurement (PP) contracts, in developing countries, hide the structural…

Abstract

Purpose

This study aim to examine the roots of professional resistance of procurement in Iran. Public procurement (PP) contracts, in developing countries, hide the structural problems of governmental management because of the lack of bureaucratic processes.

Design/methodology/approach

A two-phase qualitative study offers contextual and critical understandings on why Iranian PP experts, who are aware of the philosophies behind internationally endorsed principles, prefer to resist against the use of those principles. They help, unexpectedly, their traditionalist companions to resolve the difficulties of the PP contracts by the use of local methods and routines.

Findings

Evidence, from in-depth interviews with procurements professionals in Iran Oil industry, provides four specific themes of “professional disorder,” “anti-internationalism,” “resistance mentality” and “politicized procurement.” A preemptive resistance is characterized to guarantee that the national benefits in Iran are preferred over the international economic interests.

Originality/value

Iran has been in isolation due to political sanctions, for two decades. There are many diverse political and social reasons for resistance against professional public procurement.

Details

Journal of Public Procurement, vol. 18 no. 2
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 15 August 2016

Anthony Flynn and Paul Davis

The purpose of this paper is to test the relationship between firms’ experience of small- and medium-size enterprise (SME)-friendly policy and their participation and…

Abstract

Purpose

The purpose of this paper is to test the relationship between firms’ experience of small- and medium-size enterprise (SME)-friendly policy and their participation and success in public procurement.

Design/methodology/approach

Hypothesised relationships between SME-friendly policy and three outcome variables – frequency of tendering, success rate in public contract competitions, and commercial orientation towards the public sector – are tested using survey data from 2,755 SME respondents.

Findings

SME-friendly policy is found to be significant in explaining success rates and commercial orientation towards the public sector marketplace. It is not significant in explaining frequency of tendering.

Research limitations/implications

The context for the study is Ireland. However, given institutional similarities in national public procurement regimes, particularly among EU Member States, the findings have relevance beyond the Irish context. The research design is cross-sectional and so does not allow for any causal claims to be made.

Originality/value

This study puts forward and tests an original model of SME-friendly procurement policy and its associated outcomes for firms. It develops a comprehensive 16-item instrument to measure SME-friendly procurement policy. It uses SMEs as research informants instead of public buyers.

Details

Journal of Small Business and Enterprise Development, vol. 23 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

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