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Article
Publication date: 17 May 2013

Eleanor Fisher and Sergi Corbalán

Purpose– The article aims to examine principles of fair trade in public procurement in Europe, focusing on legal dimensions related to the European Public Procurement Directives…

1880

Abstract

Purpose– The article aims to examine principles of fair trade in public procurement in Europe, focusing on legal dimensions related to the European Public Procurement Directives. Design/methodology/approach– The article situates public procurement of fair trade products in relation to the rise of non‐state regulatory initiatives, highlighting how they have entered into new governance dynamics in the public sector and play a part in changing practices in sustainable procurement. A review of the legal position on fair trade in procurement law is informed by academic research and campaigning experience from the Fair Trade Advocacy Office. Findings– Key findings are that the introduction of fair trade products into European public procurement has been marked by legal ambiguity, having developed outside comprehensive policy or legal guidelines. Following a 2012 ruling by the Court of Justice of the European Union, it is suggested that the legal position for fair trade in procurement has become clearer, and that forthcoming change to the Public Procurement Directives may facilitate the uptake of fair trade products by public authorities. However potential for future expansion of the public sector “market” for fair trade is approached with caution: purchasing fair trade products as a marker of sustainability, which started to be embedded within procurement practice in the 2000 s, is challenged by current European public austerity measures. Research limitations/implications– Suggestions for future research include the need for systematic cross‐institutional and multi‐country comparison of the legal and governance dimensions of procurement practice with regard to fair trade. Practical implications– The paper provides a clarification of current state‐of‐play with regard to legal aspects of fair trade in public procurement of utility for policy and advocacy discussion. Originality/value– The article provides needed elaboration on an under‐researched topic area of value to academia and policy makers.

Details

Social Enterprise Journal, vol. 9 no. 1
Type: Research Article
ISSN: 1750-8614

Keywords

Article
Publication date: 1 April 2017

Kimberly Nijboer, Shirin Senden and Jan Telgen

All countries use public procurement to some degree to further policy objectives such as sustainability, innovation, fighting fraud and corruption, value for taxpayers' money etc…

3208

Abstract

All countries use public procurement to some degree to further policy objectives such as sustainability, innovation, fighting fraud and corruption, value for taxpayers' money etc. Countries may learn from past successes and failures in other countries while implementing these policies: cross-country learning. In this exploratory study, we investigate cross-country learning across two frequently used policy areas: sustainability and innovation. A threefold methodology was used that consisted of (1) an extensive review of scientific literature complemented by (2) a thorough examination of policy documents and (3) interviews with leading public procurement experts from 10 countries including both developing and developed countries. The main findings indicate that there is no hard evidence for cross-country learning. Even if cross-country learning would exist, the lessons learned seem to remain largely implicit.

Details

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

Article
Publication date: 2 February 2018

Andreas Herbert Glas and Michael Eßig

One of the major methods to promote small- and medium-sized enterprises (SMEs) in public procurement is to split tenders into lots. The basic assumption is that SMEs have better…

1858

Abstract

Purpose

One of the major methods to promote small- and medium-sized enterprises (SMEs) in public procurement is to split tenders into lots. The basic assumption is that SMEs have better chances of awarding smaller or more specialized contracts. This paper aims to investigate whether this widely accepted assumption is correct.

Design/methodology/approach

This article examines four hypotheses about the factors that influence SME success in public procurement. The empirical analysis uses real data from 380 contract award files and logistic regression to test the hypotheses.

Findings

The results show that a higher number of lots in a tender does not significantly increase the success rate of SMEs, and other factors, including the type of public procurement procedure, the number of participating companies and the overall tender volume, significantly influence SME success.

Research limitations/implications

There are several implications for theory and practice, including the need to further strengthen the academic evaluation of public procurement policies, the suggestion to implement SME support instruments in public legislation with the utmost caution in practice and the managerial indication that SME competitiveness is more relevant to their success in public bidding than public support policies.

Originality/value

The findings stand in fundamental contrast to the legal regulations, which postulate that lots are the driving force for SME promotion in public procurement. This is also in contrast to public procurement policies that, for many years, have recommended splitting contracts into smaller lots to become SME-friendly.

Details

Supply Chain Management: An International Journal, vol. 23 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 October 1998

Andrew Erridge Ruth Fee and John McIlroy

Public procurement is one of the principal instruments used by the Commission to open up the European Single Market. This paper presents a critical assessment of public procurement

2412

Abstract

Public procurement is one of the principal instruments used by the Commission to open up the European Single Market. This paper presents a critical assessment of public procurement policy in the context of developing policies on electronic commerce and the Government Procurement Agreement (GPA) within the World Trade Organisation (WTO). The paper focuses on how business can access public procurement opportunities in Europe, and what opportunities exist for improved electronic means of access to information. The proposed future for electronic tendering in Europe, SIMAP, is discussed and compared to similar systems in the USA. The paper suggests that a new legislative framework is required for public procurement and electronic commerce in Europe to ensure that governments and businesses do not suffer a competitive disadvantage in the electronic future of world trade.

Details

European Business Review, vol. 98 no. 5
Type: Research Article
ISSN: 0955-534X

Keywords

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 success in…

7578

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

Article
Publication date: 16 July 2020

Kostas Selviaridis

The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike…

Abstract

Purpose

The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation.

Design/methodology/approach

PCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts.

Findings

The UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct.

Research limitations/implications

The study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts.

Social implications

The study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme.

Originality/value

The study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

Details

Journal of Public Procurement, vol. 21 no. 3
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 1 May 2009

Lutz Preuss

While the contribution of supply chain management to sustainability is receiving increasing attention in the private sector, there is still a scarcity of parallel studies of…

12168

Abstract

Purpose

While the contribution of supply chain management to sustainability is receiving increasing attention in the private sector, there is still a scarcity of parallel studies of public procurement. Hence the purpose of this paper is to explore the ways in which local government authorities in England use their procurement function to foster sustainable development.

Design/methodology/approach

The paper uses an exploratory approach. Based on a review of the existing literature, qualitative research into leading local government authorities is undertaken to draw out the multiple ways in which public procurement can support sustainable development.

Findings

At an aggregate level, local government procurers have adopted a wide range of initiatives to address all three aspects of sustainability. These are condensed into a typology of sustainable supply chain management for the public sector.

Research limitations/implications

The study highlights the importance of supporting factors, like transparency, organisational culture and strategy as well as leeway in public policy, for sustainable supply chain management in the public sector.

Practical implications

The experience of the best practice local authorities deserves wider recognition among practitioners, policy makers and academic researchers, not least given the objective of the UK government to be among the leaders in the European Union on sustainable procurement by 2009.

Originality/value

The proposed typology of sustainable supply chain management for the public sector can serve as a basis for future research in this area.

Details

Supply Chain Management: An International Journal, vol. 14 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 8 May 2017

Kapil Patil

Increasing the share of small and medium enterprises (SMEs) in public procurement through targeted support policies is often fraught with organisational and institutional…

2468

Abstract

Purpose

Increasing the share of small and medium enterprises (SMEs) in public procurement through targeted support policies is often fraught with organisational and institutional challenges as can be seen from the experiences of many developed countries. This has profound implications for emulating such policies in developing countries where administrative capacities may be low for efficient policy management. The purpose of this paper is to widen the canvass of SME procurement policy discourse by exploring a developing country context.

Design/methodology/approach

The study provides qualitative assessment using insights from policy implementation-related theories. Due to limited reporting of target data on SME participation in India, the study conducts analysis based on key informant interviews with 20 public sector enterprises.

Findings

The evidence drawn from India mainly shows uneven performance among the procurers in achieving the SME procurement targets, and reveals serious policy implementation shortcomings. These findings correspond and complement the earlier studies on SME procurement in the developed world. The Indian case additionally reveals barriers which may be common to other developing countries such as the lack of policy-administrative capacity compounded by the prevalence of “efficiency syndrome” on the part of procurers.

Originality/value

By providing an in-depth developing country-specific assessment, the study helps informing assumptions underpinning SME-oriented procurement policies. The study, therefore, fills a gap in the literature on SME-oriented public procurement policy-making and its execution.

Details

International Journal of Public Sector Management, vol. 30 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

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 supporting…

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

Keywords

Article
Publication date: 8 May 2017

Shelena Keulemans and Steven Van de Walle

The purpose of this paper is to explore and explain public preferences for different public procurement practices. The paper looks into public support for cost-effectiveness…

3012

Abstract

Purpose

The purpose of this paper is to explore and explain public preferences for different public procurement practices. The paper looks into public support for cost-effectiveness, discriminatory procurement in favour of domestic suppliers and sustainable procurement.

Design/methodology/approach

This study uses Eurobarometer public opinion data on 26.836 EU citizens from 27 EU countries.

Findings

This paper shows that EU citizens want public authorities to evaluate multiple aspects of any procurement offer in their public procurement decisions. It also found that, although cost-effectiveness and domestic favouritism are still important to EU citizens, citizens are most supportive of the objectives of sustainable procurement. Some associations between citizens’ procurement preferences and their social characteristics and political attitudes were found, but these only explain citizen procurement preferences to a limited extent. Country of residence has the strongest association with citizens’ acceptance of the objectives of sustainable procurement.

Research limitations/implications

Even though the data contain information on the procurement preferences of a large number of EU citizens, it is a topic of inquiry that is sensitive to social desirability bias.

Originality/value

This paper contributes to the empirical understanding of public attitudes towards public procurement. It is one of few studies on citizen attitudes towards different public procurement practices.

Details

International Journal of Public Sector Management, vol. 30 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

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