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1 – 10 of 329Neil Govender, Samuel Laryea and Ron Watermeyer
Competitive tendering in South Africa is often associated with procurement based on the lowest fee tendered. Previous research on this topic did not provide in-depth examinations…
Abstract
Purpose
Competitive tendering in South Africa is often associated with procurement based on the lowest fee tendered. Previous research on this topic did not provide in-depth examinations of how pricing within consulting engineering companies was affected by competitive tendering nor did it illuminate the extent to which professional services were impacted by competitive tendering. This paper aims to examine the implications of competitive tendering on pricing and delivery of consulting engineering services in South Africa.
Design/methodology/approach
A survey research strategy with a questionnaire as the research instrument elicited qualitative data from 28 experienced consulting engineers in South Africa. Thematic analysis was used to analyse qualitative data from the questionnaires.
Findings
Three key themes were identified, namely: considerations when determining consulting engineering fees on competitively tendered projects; the impact of reduced fees due to competitive tendering on the delivery of consulting engineering services; and interventions to prevent unsustainably “low” professional fees. Many consulting engineers in South Africa still determine fees using fee scales, while other considerations include resources, project complexity, risk, etc. Most participants asserted that design optimisation/value engineering, training, meetings and construction monitoring were adversely impacted by “low” fees.
Originality/value
This paper provides in-depth qualitative feedback from experienced consulting engineers (most having more than 20 years’ experience) on a topical issue in the South African construction industry. Thematic analysis was a novel method of analysis that was not used previously in this area of study.
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Jean Claude Mutiganda and Janne T. Järvinen
Research was conducted to investigate whether, and how, political accountability might stabilise when agents are faced with profound changes in external structures such as…
Abstract
Purpose
Research was conducted to investigate whether, and how, political accountability might stabilise when agents are faced with profound changes in external structures such as competition laws and austerity policies.
Design/methodology/approach
We performed a field study from 2007 to 2015 in a regional hub in Finland and worked with data from document analysis, interviews and meeting observations. We have used embedded research design, where we apply methodological bracketing as well as composite sequence analysis for field research.
Findings
Accountability declined when irresistible external structures were the dominant influence on the unreflective actions of agents-in-focus. With time, however, the agents started acting critically by drawing on structures that could facilitate strategic actions to stabilise political accountability.
Research limitations/implications
The field research and interpretation of the data were limited to the organisation analysed; however, the theoretical arguments allow for analytical generalisations.
Practical implications
The research demonstrates how public officials and political decision-makers can eventually adopt a strategic approach when faced with irresistible change in external structures.
Social implications
The research demonstrates how public officials and political decision-makers can eventually adopt a strategic approach when faced with irresistible changes in external structures.
Originality/value
The study locates political accountability in the context of strong structuration theory and discusses how it is redefined by external structures.
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Helen Reijonen, Jani Saastamoinen and Timo Tammi
The aim is to examine the importance small and medium-sized enterprises (SMEs) see in different network partners regarding successful tendering in public procurement, and whether…
Abstract
Purpose
The aim is to examine the importance small and medium-sized enterprises (SMEs) see in different network partners regarding successful tendering in public procurement, and whether this perception predicts the number of joint bids and wins.
Design/methodology/approach
The data were collected by an electronic questionnaire which was sent to the registered users of the leading electronic platform for public procurement in Finland. The data were analysed with statistical methods.
Findings
The findings suggest that a favourable perception of the importance of horizontal networks in public procurement is associated with a larger number of joint bids and better success in joint bidding. However, the results do not establish a positive correlation between vertical networks and consortium bidding.
Research limitations/implications
The data were collected from a single EU country. Since the criteria for bidding consortia may vary between countries, different results might have been achieved from other countries.
Practical implications
SMEs should be encouraged to form bidding consortia and acquire related experience. Policymakers should minimise barriers to consortium bidding, e.g. by offering more information. They should also assess the merits of joint bidding because they rarely encourage SMEs to bid as a consortium.
Social implications
Consortium bidding is a way of enhancing SMEs’ possibilities to participate in public tender contests, even in large contracts.
Originality/value
While consortium bidding has been recognised to enhance SMEs’ possibilities of participating in public procurement, there is limited research into how SMEs’ network collaborations relate to bidding as a consortium.
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Elina Karttunen, Mika Matela, Jukka Hallikas and Mika Immonen
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained…
Abstract
Purpose
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained limited. This research takes the perspective of suppliers and aims to investigate the innovativeness of suppliers and the impact of supply chain ambidexterity strategies on their perceptions about public procurement in terms of innovation enablers and customer attractiveness.
Design/methodology/approach
This research draws from a survey of 137 suppliers to the public sector in Finland and applies PLS-path modeling to test its hypotheses.
Findings
The findings reveal that the ambidexterity strategy of suppliers in the supply chain influences how they perceive the innovation enablers and customer attractiveness of public organizations since processes of public procurement do not support these strategies fully. Supplier innovativeness has an influence on the perceived innovation enablers of public procurement, which, in turn, influences customer attractiveness.
Practical implications
The innovativeness and strategies of suppliers for the supply chain have an impact on how attractive they perceive public procurement. The findings of this research provide insights on why the customer attractiveness of public procurement may not be high enough to secure the competition in their bidding processes.
Originality/value
The study’s contribution adds to the field of buyer–supplier relationships and customer attractiveness in public procurement by showing the importance of innovation enablers and highlighting the impact of supplier's ambidexterity in the supply chain on their perceptions about public procurement.
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Kirsi Aaltonen and Virpi Turkulainen
The purpose of this paper is to elaborate the understanding of socialization in the context of temporary operations and organizational settings, using project alliance – the most…
Abstract
Purpose
The purpose of this paper is to elaborate the understanding of socialization in the context of temporary operations and organizational settings, using project alliance – the most contemporary approach to the management of large and complex projects – as an example. In particular, the paper also assesses how informal and formal socialization mechanisms are used to facilitate relational capital in such a setting.
Design/methodology/approach
Data were collected by two case studies of complex infrastructure projects in a Northern European city. The analysis focuses on how socialization is managed across organizational interfaces within the alliance organization during the project tendering and development phase to create relational capital.
Findings
The findings indicate that significant emphasis is put on socialization in project alliances. However, while in the tendering phase both informal and formal socialization mechanisms are used to create relational capital; in the development phase informal socialization mechanisms are associated with higher levels of relational capital and formal socialization mechanisms are used to maintain the level of relational capital.
Originality/value
While operations and supply chain management research argues that socialization is critical to manage organizational interfaces and to create relational capital in buyer-supplier relationships, research has mainly focused on ongoing operations. This study complements the prior research by developing further insight into socialization in the context of temporary operations and organizational settings; such settings create a unique empirical context, posing different managerial challenges as the results also indicate.
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Joseph Kuruneri and Wiston Zivanai
Governments worldwide seek to optimize value in public project bids. Social procurement (SP) has become a global tool for achieving project goals. The purpose of this study is to…
Abstract
Purpose
Governments worldwide seek to optimize value in public project bids. Social procurement (SP) has become a global tool for achieving project goals. The purpose of this study is to assess the understanding of SP among contractors and identify its drivers to optimize the value associated with public projects.
Design/methodology/approach
A total of 15 major contractors were interviewed to obtain their views on SP, appreciate their current practices and identify the main drivers of SP in projects. A semistructured interview was used to gather relevant data. Neo-institutional theory is the lens of the study used to provide the focus of the research. The collected data were analyzed using the thematic data analysis technique.
Findings
The study found that SP is understood as corporate social responsibility and is not handled in a structured manner guided by policies or clearly defined procedures. Additionally, research has shown that compliance requirements, rather than value and goodwill, are the main inspiration for SP practices.
Research limitations/implications
The study’s limitation is the fact that it was conducted in the context of Botswana and only used the interview technique as the solo data collection method. The other limitation is the lack of empirical literature on SP concerning the lack of SP policy in Botswana.
Originality/value
This study raises awareness of the concept of SP among contractors in Botswana and eases its implementation within the industry.
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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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Abstract
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In industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of…
Abstract
Purpose
In industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of how these benefits transfer to the public domain. This study aims to explore the influence of customer attractiveness on supplier resource mobilization efforts toward the public sector.
Design/methodology/approach
A qualitative approach was used, focusing on in-depth interviews with 23 informants from 3 critical and complex supplier markets. The data were processed using inductive coding and thematic analysis.
Findings
The findings indicate that customer attractiveness in the public sector influences suppliers’ mobilization efforts on several dimensions. In addition to stimulating competition in the tender phase, customer attractiveness can yield important benefits to quality, supply stability and innovation during the business relationship. It appears imperative for the public sector to improve its standings with suppliers to both mitigate the apparent risk of sub-par treatment and to unlock the preferential supplier treatment associated with being an attractive customer.
Social implications
Receiving increased mobilization from suppliers will result in better use of public money and help improve resilience and innovation in public procurement.
Originality/value
This study extends the research on customer attractiveness in the public sector by being the first to explore the range and nature of its influence on supplier mobilization efforts.
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