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Article
Publication date: 16 June 2020

The impact of e-procurement on institutional quality

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…

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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
DOI: https://doi.org/10.1108/JOPP-07-2019-0050
ISSN: 1535-0118

Keywords

  • E-procurement
  • Public procurement
  • Institutional quality
  • C33
  • D73
  • D78
  • E02
  • H57

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Article
Publication date: 31 March 2020

Competitive dialogue: an economic and legal assessment

Giulia Buccino, Elisabetta Iossa, Biancamaria Raganelli and Mate Vincze

The purpose of this paper is to discuss the economic and legal rationale for the use of the competitive dialogue in complex procurement. The authors use the data set of…

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Abstract

Purpose

The purpose of this paper is to discuss the economic and legal rationale for the use of the competitive dialogue in complex procurement. The authors use the data set of public contracts awarded by European Union (EU) member states between 2010 and 2017 to analyse its usage patterns. In particular, the authors identify the types of contracting authorities that mainly use the procedure, the sectors and contract characteristics and the role of institutional factors related to the country’s perceived corruption and level of innovativeness.

Design/methodology/approach

The authors discuss economic and legal issues in the use of the competitive dialogue. The authors use a data set of public contracts awarded by EU member states, published on the EU’s public procurement portal Tenders Electronic Daily (TED) to analyse usage patterns and explore the types of contracting authorities that use the procedure, the sectors and type of tenders. The data covers a sample of 1.242.090 observations, which relates to all the contract award notices published on TED in the period 2010-2017 for all the 28 European member states. A probit model is used as a methodology.

Findings

The empirical analysis reveals that the use of competitive value is greater for larger value contracts, for national rather than local authorities, for the supply of other manufactured products and machinery; for research and development and business, as well as information technology services; and for construction works. The level of perceived corruption and the gross domestic product/capita do not have explanatory power in the use of the procedure, whilst a country’s degree of innovativeness, as measured by the global innovation index, positively affects the probability of adopting the procedure. A decreasing trend in the use of competitive dialogue over time is observed.

Research limitations/implications

In conclusion, the countries examined benefited from a long tradition of public–private partnerships (PPPs) and from a transposition of the 2004 directive, able to provide an inclusive interpretation of complexity, and therefore, stimulate the adoption of the competitive dialogue in different sectors. Conversely, the countries, which postponed a concrete transposition and the overcoming of the confusing concept of complexity, limited the scope for the application of competitive dialogue, relying on the easier alternative: the negotiated procedure. Those circumstances lead to visible difficulties in stimulating the adoption of the procedure even in the traditional sectors; indeed, only with the new directive’s provisions a slight change in the trend can be seen.

Practical implications

To foster the use of the competitive dialogue in countries that have so far used it to a limited extent is important to improve upon the definition of complexity and learn from the experience of the top usage countries, as identified in the analysis.

Social implications

Helping the use of the procedure may facilitate the procurement of complex contracts such as PPPs, and thus, ease the building and management of public infrastructures for the provision of public services.

Originality/value

The authors are not aware of previous studies that have used the TED data set and studied the law in a number of European countries so as to understand the usage patterns for the competitive dialogue.

Details

Journal of Public Procurement, vol. 20 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JOPP-09-2019-0059
ISSN: 1535-0118

Keywords

  • Competitive dialogue
  • European procurement policy
  • Innovation
  • Public procurement
  • Public sector
  • European policy
  • H57
  • K19

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Article
Publication date: 6 November 2017

Predicting consumer healthy choices regarding type 1 wheat flour

Mariantonietta Fiore, Crescenzio Gallo, Evangelos Tsoukatos and Piermichele La Sala

Healthy and safety food issues are more and more becoming the purchasing process core of conscious consumer. “Type 1” wheat flour means higher protein and ash content. The…

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Abstract

Purpose

Healthy and safety food issues are more and more becoming the purchasing process core of conscious consumer. “Type 1” wheat flour means higher protein and ash content. The purpose of this paper is to investigate the attributes usually referred to the characteristics of wheat flour known to consumers and at implementing a predictive model of purchasing that allows to make correct decisions without the necessary experience of a real human expert.

Design/methodology/approach

In order to investigate the research aims of the paper, an online survey was carried out and conducted by means of the Google Forms in the detection time January-April 2016. The online survey collected responses from 467 Italian respondents asked to give feedback about their buying habits of various types of flour. The responses were analyzed through a data mining approach. This paper implements predictive analytics to create a statistical model of future behavior by means of a machine learning algorithms.

Findings

In line with recent healthy and dynamic trends in the food industry, conscious consumer seems to be willing to pay a price for “type 1” wheat flour that is four times higher than the price related to the basic types of wheat flour.

Social implications

Consumer seems not to know well the “type 1” wheat flour and its healthy characteristics; then, it should be crucial to implement promotional strategies and marketing hand in hand. Promotion can be a key element in putting across the health benefits of special kinds of wheat flour.

Originality/value

Highlighting health issues about the “type 1” wheat flour gives insights and sheds some light on the crucial need of changing eating and purchasing behavior. Then, originality of this paper can be found in the used predictive algorithm of the artificial intelligence.

Details

British Food Journal, vol. 119 no. 11
Type: Research Article
DOI: https://doi.org/10.1108/BFJ-04-2017-0200
ISSN: 0007-070X

Keywords

  • Consumer behaviour
  • Healthy food
  • Basis types of wheat flour
  • Machine learning algorithms

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