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The purpose of this study is to examine the implications of inter-governmental relations on procurement compliance in local government.
Abstract
Purpose
The purpose of this study is to examine the implications of inter-governmental relations on procurement compliance in local government.
Design/methodology/approach
A total of 68 in-depth interviews with local government officials and councillors in four different local government authorities, members of parliament in the local authorities accounts committee and a committee clerk were carried out in addition to documentary review.
Findings
Evidences from in-depth interviews and documentary analysis point to central government as one of key reasons for procurement non-compliance. The nature of inter-governmental relations enables the central government to issue encroaching directives on local government procurement plans or take handicapping actions on the financial ability of the local governments to execute procurement plans.
Practical implications
The study adds inter-governmental relations on strategies for improving procurement compliance in African local government systems.
Originality/value
Despite increasing research on procurement compliance, the complexity of regulatory non-compliance in local government procurement has not been adequately analysed. The current study uses an inter-governmental relations perspective to contribute knowledge on procurement compliance in local government systems of the Third World, sub-Saharan Africa in particular.
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Achmad Nurmandi and Sunhyuk Kim
– The purpose of this paper is to investigate the implementation of initiative e-procurement in decentralized system on Indonesia’s local government system.
Abstract
Purpose
The purpose of this paper is to investigate the implementation of initiative e-procurement in decentralized system on Indonesia’s local government system.
Design/methodology/approach
The authors combine quantitative and qualitative methods. The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. This research focusses on three local governments in Indonesia – Yogyakarta City, Tangerang City, and Kutaikartanegara Regency.
Findings
The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. However, Tangerang City is going institutionalization phase in e-procurement initiative to ensure its sound local regulation.
Research limitations/implications
There are several limitations to this study including the recent nature of decentralized procurement in Indonesia, limited standardized and disaggregated data on local government procurement expenditures and performance.
Practical implications
The study recommends that human resources management in procurement needs to be addressed by both local and central government.
Originality/value
e-Procurement is an important instrument for preventing corruption in goods and services procurement. Indonesia has been implementing an e-procurement policy since 2008 based on a Presidential Decree. The president has issued annual orders (presidential instructions), and all central ministries and local governments have been required to comply with them to obtain their budget through the e-procurement system. However, as of 2012 fiscal year, only around 10.26 percent of the central government institution procurement budget and 10 percent of the local government procurement budget in Indonesia went through the e-procurement system, with wide variations among cities.
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In this first of two articles, the authors assess the implications of policy developments in partnership and contestability, commissioning and procurement, and local jurisdiction…
Abstract
In this first of two articles, the authors assess the implications of policy developments in partnership and contestability, commissioning and procurement, and local jurisdiction for adult services joint ventures. They argue for creative responses to service delivery in which policy implementation is seen as an opportunity for local health and social care agencies to honour the history of, and future aspirations for, local partnerships. A second article will detail the very different responses to the policy agenda of four case study sites, exploring the local contours and aspirations underlying their decisions, with the intention of provoking discussion about the art of the possible in the broader community of interest.The papers draw on the authors' work funded by the Integrated Care Network (ICN) and Care Services Improvement (CSIP), which comprised a series of workshops to inform the further development of the plans of four local health and social care communities ‐ Portsmouth, Wolverhampton, Barnsley and Milton Keynes ‐ for commissioning and provision of adult care services, providing a community of interest in which aspirations, challenges and emerging solutions were exchanged and explored. Here we summarise transferable learning for the broader community of interest, drawn from the more detailed reports available from the ICN (Freeman & Peck, 2006, 2007).
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The contribution of planning in facilitating an efficient and effective performance of public sector organizations is generally undisputed in both developed and developing…
Abstract
The contribution of planning in facilitating an efficient and effective performance of public sector organizations is generally undisputed in both developed and developing countries. Its contribution can be at both central and local government levels of public sector management. This article examines the relationship between procurement planning and accountability of local government procurement systems in Uganda. The findings arose from a study that was conducted among 99 local government stakeholders selected from 11 Districts of Uganda, using a correlation research design. The data was analyzed using principal component factor analysis that aimed at identifying the critical components of procurement planning and accountable local governments systems in Uganda. Consequently, correlation analysis to establish the direction and magnitude to which the two variables were related was conducted and results are presented. The findings revealed a significant positive relationship between procurement planning and accountable local government procurement systems in Uganda. These results are compared to international research findings, and suggestions are offered for management, policy making, future research and efficient accountable local government operations.
Alireza Talebi and Davar Rezania
Governance of projects is a dynamic process that involves the interaction of agents, opportunities, rules, instruments and legitimacy. The authors conducted a case study of the…
Abstract
Purpose
Governance of projects is a dynamic process that involves the interaction of agents, opportunities, rules, instruments and legitimacy. The authors conducted a case study of the governance of exploratory projects in public procurement of innovation in a local government. The authors consider both contextual aspects that impose requirements on the procurement process and procedural aspects of how the different actors interact with each other. In particular, the purpose of this study is to investigate how actors make sense of the projects and how governance evolves over their lifetime.
Design/methodology/approach
To engage in an open-system investigation of exploratory public procurement of innovation (PPI) projects, the authors adopted a case study approach in which they collected a variety of data including publicly available documentary evidence, interviews with project participants and project evaluation reports. The authors used transcripts of 17 interviews with project participants conducted independently to gain an initial understanding of the case. They conducted additional semi-structured interviews with projects’ participants (ten interviews in total) and used theory-driven analysis (Pawson and Tilley, 1997) based on Borrás and Edler’s (2014) model of governance.
Findings
The authors identified four stages – problem identification, partner selection, partnership development and evaluation and commercialization – these projects. The case demonstrates how governance changes in each stage and at the three levels of policy, network and projects. Each level has its own governance pillar. The results suggest that a multi-level perspective (MLP) can be a fruitful framework to study governance of projects in these contexts.
Research limitations/implications
The authors note that the number of participants in the network of this case is not very large. Other organizations that aim to adopt PPI may need to pay attention to the complementarity and the number of partners in the network. In this case, organizations were motivated to collaborate as each had its own objectives which were distinct but complementary.
Practical implications
Co-creation of value is currently a topic of interest for public policy reform across the globe. The case indicates that procurement for innovation requires a degree of coordinated change across governmental departments, such as planning, legal and procurement to implement the policy and related support systems. Furthermore, the authors observed that a portfolio approach to inter-organizational collaboration with different partners was effective. Each partner has its own objective, but they complement one another. A portfolio of different, though complementary, inter-organizational arrangements enables various complementary instruments and various logics to be used.
Social implications
The public sector is an important actor in driving innovation in products and services that fulfill societal needs. This is explored in public procurement of innovation. In this process, several partners from private and public sectors are involved. This partnership is mainly used to co-create the value and encourage innovation to benefit the citizens. However, to serve this goal, the case indicates that procurement for innovation requires a degree of coordinated change across governmental departments, such as planning, legal and procurement to implement the policy and related support systems. For this phenomenon MLP should be used as an inclusive framework to study socio-technical change.
Originality/value
The analysis of the case presented in this study demonstrates that even in the case of temporary public procurement of innovation projects, governance is layered. The three pillars of governance not only interact at each layer but also communicate across layers. Even though the interaction of the three pillars of governance is well established in the literature on socio-technical change, the interaction across levels in the context of temporary projects is novel. The authors contribute to the literature on governance of such projects by highlighting the stratification of governance.
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Demands from key stakeholder groups, some triggered by concerns about human rights and breaches of international guidance on safe and healthy workplaces, have led to an increase…
Abstract
Demands from key stakeholder groups, some triggered by concerns about human rights and breaches of international guidance on safe and healthy workplaces, have led to an increase in the calls for transnational businesses to be held accountable. The raised expectations that companies will govern transparently and company officials will be held accountable for deviations has seen a steady increase in the number of transnational businesses taking action to improve their processes, create greater accountability in decision making that affects procurement and make informed choices to ensure value for money from companies at the end of the procurement process. This has led to the rethinking of how large global companies make decisions about procurement and the role played by local suppliers to benefit from the engagement of local companies.
In a steadily increasing number of countries, changes have been made also through amendments to companies legislation which require companies to go beyond reporting financial performance only, but to include also updates about social as well as environmental performance indicators. In the case of supply chains for natural resources such as oil and gas and agriculture, there is evidence of some companies taking action to expand and diversify their supply chain.
In a review of supply chain activities of transnational businesses operating in developing countries and emerging economies, this chapter identifies strategies used to shift to more innovative and socially conscious approaches to strengthening local supply chains. The author suggests approaches that can be taken by transnational businesses in creating a greater shareholder value, foster goodwill among key stakeholders as well as strengthen organisational governance and promote sustainable procurement.
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Seungha Baek and Agnieszka Radziwon
Public food procurement (PFP) plays an important role in establishing agri-food systems. The study explores local food system stakeholders' response to PFP interventions by…
Abstract
Purpose
Public food procurement (PFP) plays an important role in establishing agri-food systems. The study explores local food system stakeholders' response to PFP interventions by addressing the question of how PFP transforms agri-food systems and how this new agri-food ecosystem is governed.
Design/methodology/approach
This article presents and discusses a unique case study of Jeonbuk, a rural province in South Korea, which successfully transformed its agri-food system into an ecosystem through its sustainability-oriented innovations (SOIs) among born ecopreneur farmers. This case not only offers insights into a novel way to create value chains through legislative, executive and judicial governance but also extends the body of knowledge on agri-food systems by introducing the concept of an agri-food ecosystem.
Findings
The findings indicate the importance of the ecosystem governance and knowledge exchange among internal and external ecosystem stakeholders. In particular, PFP institutions play a crucial role in facilitating the operation of public meal centers and cooperation among actors.
Practical implications
Taking an ecosystem lens to agri-food systems may offer agricultural cooperatives a wider perspective and better understanding of the governance structures necessary to successfully execute public interventions. Lastly, the Korean case differs from other developing countries, but its role model qualities could help to implement successful school meal programs elsewhere.
Originality/value
This paper reviewed and applied a conceptual framework aimed at identifying the role of PFP institutions in the value chain governance by studying a case study of a South Korean local school meal program. The study further extends the agricultural cooperatives research and contributes to a better understanding of the role of a municipality and an agri-food intermediary in the governance process involving producers and kitchens.
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This study aims to analyze city networks as they face the challenges of global warming. It seeks to introduce the notion of “governance from the middle” as an alternative to…
Abstract
Purpose
This study aims to analyze city networks as they face the challenges of global warming. It seeks to introduce the notion of “governance from the middle” as an alternative to traditional intergovernmental policy. This is developed by focusing on the particular experiences of the C40 Cities Leadership Group and discussing its prospects and risks.
Design/methodology/approach
CCI works with a number of commercial banks, institutional investors, international financial institutions and other capital providers to design financing programmes and source capital.
Findings
The C40 Group illustrates some fundamental traits of city networks with a hybrid governance structure, combining traditional public institutional structures with market‐based arrangements, organizationally and qualitatively governing from the middle. Critical factors in this dynamic are the use of an external implementing body, providing new organizational opportunities for the network, and the prominence given to an integrated procurement process, which develops incentive structures for action and effectively connects actors at various levels of society. The latter emphasis on market‐incentives as a template for action is an innovative governance feature but not the panacea many want. The complex nature of the governance arrangement itself, the structural asymmetries among its members, and the diversified set of issues the network intends to address are all factors that remain to be researched.
Originality/value
The study provides new perspectives on the conceptual discussions about governance by introducing the notion of “governance from the middle”. These allow us in turn to continue research about the role of market‐arrangements in linking global and local ambitions. This could have a decisive policy impact on climate governance in general.
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Aksel I. Rokkan and Sven A. Haugland
This paper aims to develop a theoretical framework based on transaction cost economics that identifies key factors shaping public agencies’ governance of supplier relationships…
Abstract
Purpose
This paper aims to develop a theoretical framework based on transaction cost economics that identifies key factors shaping public agencies’ governance of supplier relationships and related performance implications.
Design/methodology/approach
The paper presents an extended transaction cost framework for research on public procurement (PP) with a corresponding set of propositions. Transaction cost theory and specific features of and challenges to the PP function identified in extant literature constitute the main elements of the framework.
Findings
This conceptual paper makes three sets of proposals. First, public agencies tend to rely on market governance of supplier relationships and when PP deploys non-market governance, such governance tends to be of a unilateral (vs bilateral) kind. Second, increases in purchasing competence and autonomy of PP and particularly if implemented in tandem, will reduce PP’s overreliance on market governance and increase PP’s use of non-market governance. Third, PP should perform better for less complex transactions – and when contracting complexity relates to safeguarding of specific assets rather than when complexity relates to environmental and behavioral uncertainty. Increases in competence and autonomy should increase PP’s performance, particularly for complex transactions.
Practical implications
Public agencies may be in a better position to align governance solutions with transaction complexities by developing their procurement competence, decentralizing procurement decisions and increasing the flexibility of national and international procurement regulations. Private companies selling to public agencies need to be aware of and able to adapt to PP practices such as extensive use of market governance and unilateral governance as the primary form of non-market governance.
Social implications
The paper discusses how public agencies can improve procurement performance through better alignment of governance of supplier relationships with transaction attributes and thereby increase the quality of public services.
Originality/value
The paper relies on a well-established theoretical perspective, enabling identification (and, potentially, correction) of governance misalignment in the public sector.
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The purpose of this paper is to examine the transaction costs involved in managing procurement contracts in the public sector, particularly at the lower and higher level of local…
Abstract
Purpose
The purpose of this paper is to examine the transaction costs involved in managing procurement contracts in the public sector, particularly at the lower and higher level of local governments from the clients’ perspective.
Design/methodology/approach
The paper uses new institutional economics, specifically the transaction cost approach. A multiple case study design was used, in which five local government authorities (LGAs) were selected from the Kigoma and Tanga regions of Tanzania. Interviews with heads of procurement management units, focus groups and secondary sources were used to collect information for lower level LGAs.
Findings
Very high information, negotiation and monitoring transaction costs were revealed at the post-contractual stage for higher levels of local government in all cases. Transaction costs were associated with institutional problems, lack of financial resources and attitudes towards accountability, transparency and competition. It was also found that lower levels of local government are faced with very high transaction costs for all procurement stages due to a lack of procurement contract management capacity among ward and village procurement project committees, low levels of support from higher level LGAs, a lack of simple Swahili-standardised documents and guidelines for lower level procurement contract management which reflect current legal issues and the lack of a legal framework for procurement at the lower level of local government. These costs are associated with poor accountability and a lack of competition, transparency and efficiency throughout public procurement chains.
Research limitations/implications
There is no estimate for quantitative approaches, because it is was difficult to measure transaction costs associated with accountability, transparency and efficiency.
Originality/value
The paper contributes knowledge on qualitative levels of transaction costs for procurement contract management for both higher and lower levels of LGAs from the clients’ viewpoint.
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