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Article
Publication date: 1 March 2017

Analyzing buyer behavior when selecting green criteria in public procurement

Mieko Igarashi, Luitzen de Boer and Gerit Pfuhl

Given the complexity of green public procurement, decisions are likely to be driven by bounded rationality. However, we know little about what determines supplier…

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Abstract

Given the complexity of green public procurement, decisions are likely to be driven by bounded rationality. However, we know little about what determines supplier selection criteria in any given situation. This study explores buyer behavior when considering environmental criteria. We first conducted interviews and identified 12 operational procedures used by buyers. We then developed a survey to explore the use of these procedures. Our quantitative analysis suggests that public buyers are motivated by their belief that they can make a difference. This is independent of buyers' experience or gender. However, their occupational position and the nature of a procurement seem to influence how buyers seek information about environmental criteria and which information source(s) they use. The data suggest that four specific decision-making heuristics are associated with the selected operational procedures.

Details

Journal of Public Procurement, vol. 17 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JOPP-17-02-2017-B001
ISSN: 1535-0118

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Article
Publication date: 13 February 2017

Procedural rationality in supplier selection: Outlining three heuristics for choosing selection criteria

Luitzen de Boer

The purpose of this paper is to present three heuristics for choosing supplier selection criteria. By considering the balance between the expected relative effort and…

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Abstract

Purpose

The purpose of this paper is to present three heuristics for choosing supplier selection criteria. By considering the balance between the expected relative effort and benefit of using different selection criteria, the heuristics suggest which criteria should be prioritized. The heuristics serve to develop our understanding of the search and evaluation heuristics used in supplier selection and to facilitate further research.

Design/methodology/approach

The research is primarily theoretical, yet draws on empirical studies of supplier selection. The theoretical basis is Simon’s notion of procedural rationality (Simon, 1976). The author makes the general notion of procedural rationality more concrete for supplier selection by formally describing three heuristics for choosing selection criteria. The heuristics share the same logic but differ in terms of the precision of the input information required from the purchaser. The paper provides illustrations of the heuristics.

Findings

It appears that procedural rationality can be specified for the process of designing the supplier selection process by explicitly recognizing the cost and value of selection criteria. There is no one way of doing this, but at the most basic level, it requires an ordinal ranking of criteria. Already such a rudimentary, qualitative, assessment can help identifying suitable criteria. The heuristics developed appear compatible with established approaches for the subsequent selection of suppliers.

Originality/value

The paper addresses the early stage of supplier selection which has been largely ignored in the literature.

Details

Management Decision, vol. 55 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MD-08-2015-0373
ISSN: 0025-1747

Keywords

  • Bounded rationality
  • Heuristics
  • Supplier selection
  • Selection criteria

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Article
Publication date: 19 November 2018

Integration in loosely coupled garment supply chains: The case of a Mexican trader as switchboard operator

Pilar Ester Arroyo, Elsebeth Holmen and Luitzen De Boer

This paper aims to deliberate about the problem of tight and seamless integration in a supply chain by conceptualising and understanding how looseness and its creation…

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Abstract

Purpose

This paper aims to deliberate about the problem of tight and seamless integration in a supply chain by conceptualising and understanding how looseness and its creation represent an effective supply chain design.

Design/methodology/approach

This research is grounded in system theory and industrial network research, while the case study of a textile and garment supply network coordinated by a third party in Mexico empirically illustrates how looseness in the supply chain may be created. The information gathered through in-depth interviews with critical informants at Aztex and three of their suppliers, visits in situ and secondary information, was organised with the template analysis technique and interpreted from three different but complementary perspectives, system theory, supply chain coordination modes and industrial networks, to establish the particularities of the triad model.

Findings

The study shows that supply chain integration may take place in a variety of forms, and that new theoretical perspectives are required to understand how the looseness in the connections among actors contributes to the flexibility and efficiency of the chain. Additionally, the analysis of the case puts forward the trader’s crucial role as linking pin between suppliers and customers in the specific context of the garment sector.

Research limitations/implications

Additional cases and triangulation of information from traders, suppliers and customers would contribute to explore in more detail how integration takes place not only in the textile and garment industry sector but also in other industries.

Practical implications

A rational explanation of why establish full integration across several tiers of suppliers and customers is too difficult to attain is given to managers. They may recognise that tight couplings will be necessary and possible only with strategic counterparts; meanwhile, others are more suitable to be delegated to a third party.

Social implications

The economic and industrial stability and progress of low-cost sourcing countries depends on the selection of international purchasers. The advancement of triangle manufacturing facilitated by a trader may become another criterion to drive the selection towards a region. In the case of Mexico, this adds to the near sourcing advantages of the country.

Originality/value

The research confirms that there is no unique global mode of supplier integration and suggests that different approaches are viable as long as the objectives of operational efficiency, good customer service and flexibility are satisfied.

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JGOSS-10-2017-0042
ISSN: 2398-5364

Keywords

  • Qualitative
  • Mexico
  • Industrial networks
  • Supply chain integration
  • System theory
  • Trader intermediaries

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Article
Publication date: 17 October 2016

Learning from intelligent conversation: How can insights from system theory contribute to advance IMP research?

Luitzen De Boer and Poul Houman Andersen

The purpose of the paper is to contribute to further advancing of IMP as a research field by setting up and starting a theoretical conversation between system theory and the IMP.

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Abstract

Purpose

The purpose of the paper is to contribute to further advancing of IMP as a research field by setting up and starting a theoretical conversation between system theory and the IMP.

Design/methodology/approach

The approach is based on a narrative literature study and conceptual research.

Findings

The authors find that system theory and cybernetics can be regarded as important sources of inspiration for early IMP research. The authors identify three specific theoretical “puzzles” in system theory that may serve as useful topics for discussion between system theorists and IMP researchers.

Originality/value

Only a handful of papers have touched upon the relationship between system theory and IMP before. This paper combines a narrative, historical analysis of this relationship with developing specific suggestions for using system theory as a vehicle for further advancement of IMP research.

Details

IMP Journal, vol. 10 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IMP-12-2015-0070
ISSN: 2059-1403

Keywords

  • Cybernetics
  • System theory
  • IMP research

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Article
Publication date: 16 October 2017

Public procurement reform in the EU: start of a new era?

Tim Torvatn and Luitzen de Boer

The purpose of this paper is to study the reform of public purchasing directives initiated by the European Union (EU) and discuss them in light of the criticism against…

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Abstract

Purpose

The purpose of this paper is to study the reform of public purchasing directives initiated by the European Union (EU) and discuss them in light of the criticism against existing public purchasing directives.

Design/methodology/approach

A literature review of empirical articles is critical to existing public purchasing directives to summarize the main directions and categories of their criticism, and a thorough reading of the proposed reform of the public purchasing directives is carried out to see if the changes will answer some or all of the criticism directed toward the public purchasing directives.

Findings

The reforms seem to be a step in the right direction, particularly with respect to public organizations possibility to support innovation and new product and service development, but little change in the possibilities for development of strategic, long-term relationships.

Research limitations/implications

The reform has just been introduced, and so the analysis of the possible effects of the reform is not based on empirical data (since such data do not exist yet), but mostly on the authors experience in the field and through a comparison with selected literature.

Originality/value

An early assessment of the possible effects of the reform regarding public procurement directives in the EU area is introduced.

Details

IMP Journal, vol. 11 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IMP-09-2015-0056
ISSN: 2059-1403

Keywords

  • Policy
  • Effects of relationships
  • Public purchasing

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Article
Publication date: 1 September 2006

A satisficing model of outsourcing

Luitzen de Boer, Juan Gaytan and Pilar Arroyo

To develop a prescriptive model that provides effective guidance in the early stages of outsourcing processes, while taking into the decision‐makers' bounded rationality.

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Abstract

Purpose

To develop a prescriptive model that provides effective guidance in the early stages of outsourcing processes, while taking into the decision‐makers' bounded rationality.

Design/methodology/approach

Provides an overview of existing prescriptive decision models for outsourcing based on literature review. Contrasts these models with empirical accounts of outsourcing including two case‐studies of outsourcing of logistics activities. Discusses and explains discrepancies from the point of view of literature on bounded rationality and satisficing. Develops a conceptual decision model based on the principles of satisficing.

Findings

That there appear to be discrepancies between many of the prescriptive outsourcing models in the literature and the processes observed in practice. That satisficing concept provides a useful explanation of these discrepancies and useful design principles for developing more realistic prescriptive outsourcing decision models.

Research limitations/implications

The model developed in this paper constitutes a first step and its details must be worked out and investigated in more detail. In that respect, specific suggestions for further research are included in the paper, e.g. regarding the potential of methods and techniques from operations research in certain parts of the model.

Practical implications

Explains discrepancies between existing outsourcing decision models and outsourcing processes in practice – in particular regarding the practice of outsourcing (combinations of) logistics activities. Offers the basis for realistic decision guidance in outsourcing processes.

Originality/value of the paper

This paper is one of first which presents an outsourcing model that explicitly incorporates satisficing principles.

Details

Supply Chain Management: An International Journal, vol. 11 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/13598540610682462
ISSN: 1359-8546

Keywords

  • Outsourcing
  • Decision making
  • Distribution management

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Article
Publication date: 1 June 2006

A survey of third party logistics in Mexico and a comparison with reports on Europe and USA

Pilar Arroyo, Juan Gaytan and Luitzen de Boer

To investigate the status of third party logistics (3PL) in Mexico and the feasibility of 3PL as a global, uniform strategy.

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Abstract

Purpose

To investigate the status of third party logistics (3PL) in Mexico and the feasibility of 3PL as a global, uniform strategy.

Design/methodology/approach

A survey among firms located in the central part of Mexico, followed by a comparison of the results with data from existing 3PL studies of Europe and the USA.

Findings

3PL seems a common but “low profile” practice among large Mexican firms. Only a third outsources more than three functions, which are mostly supportive and operational. Compared to Mexico, 3PL use is higher in Europe and USA. Firms in Europe and USA focus more on tactical, integrated functions and cost reduction when using 3PL while Mexican firms aim for improved customer service and concentration on core activities. The lack of competitive local providers makes 3PL expensive and may favour larger, international providers.

Research limitations/implications

The results warrant additional surveys of Mexico and other developing regions, preferably using a unique survey design and covering more SME's. Case studies are needed to further investigate how multinational firms manage the 3PL decision process on different organizational and regional levels.

Practical implications

Uniform, global 3PL strategies should be considered with care: what may work in Europe may not work in Mexico or the USA. Outsourcing should be seen as a means and not as an end. Mexican firms can use 3PL successfully yet achieve different ends than European firms. Mexico's large SME market offers opportunities for providers of 3PL services.

Originality/value

This is the first thorough study about outsourcing logistics practices in Mexico, which adds a Latin‐American perspective to the very few 3PL studies conducted in developing regions. In addition, the comparison of Mexican outsourcing practice with practices across the USA and Europe offers a cross‐cultural view on 3PL and identifies the need for further mapping of expectations and conditions related to effective outsourcing of logistics in other regions.

Details

International Journal of Operations & Production Management, vol. 26 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/01443570610666984
ISSN: 0144-3577

Keywords

  • Outsourcing
  • Operations management
  • Mexico

Content available
Book part
Publication date: 1 May 2019

Public Private Collaboration in the Context of Zero Emission Neighbourhood

Anandasivakumar Ekambaram, Ann Kristin Kvellheim and Luitzen de Boer

This study aims to gain an understanding of success factors and barriers to public private collaboration in the context of zero emission neighbourhood.

Open Access
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Abstract

Purpose

This study aims to gain an understanding of success factors and barriers to public private collaboration in the context of zero emission neighbourhood.

Design/Methodology/Approach

Qualitative research method: narrative literature study.

Findings

On the basis of the identified success factors and barriers, a model with the following five interconnected themes is developed: (1) supportive public policy, (2) stakeholder management, (3) creation of a common ground for understanding, (4) knowledge sharing and learning and (5) uncertainty management.

Research Limitations/Implications

The model can be further developed and tested. In-depth conceptual/empirical study on the five themes can shed more light on the topic.

Practical Implications

This model is one of the several ways to understand, structure and simplify the reality (of public private collaboration in the context of zero emission neighbourhood). These five themes are arranged in the model in such a way to represent strategic, tactical and operational levels. This model can be useful to identify measures (steps, concrete actions, etc.) To address issues related to the five themes in a given organisational context. Focusing adequately on these five themes can contribute to successful public private collaboration in the context of zero emission neighbourhoods.

Originality/Value

This study/model provides an overall, holistic approach to address/improve public private collaborative endeavours in the context of developing zero emission neighbourhoods.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
DOI: https://doi.org/10.1108/S2516-285320190000002007
ISBN: 978-1-83867-051-1

Keywords

  • Zero emission neighbourhood
  • Construction
  • Public private collaboration
  • Energy efficiency
  • Stakeholder management
  • Knowledge sharing
  • Uncertainty management

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Article
Publication date: 1 November 2003

Purchasing as an organizational design problem: the case of non‐product‐related items and services

Luitzen de Boer, Elsebeth Holmen and Corina Pop‐Sitar

This paper discusses the problems and challenges that arise if a firm tries to concentrate purchasing activities in a separate organisational unit. For a variety of…

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Abstract

This paper discusses the problems and challenges that arise if a firm tries to concentrate purchasing activities in a separate organisational unit. For a variety of reasons, only a – small – part of all purchasing activities in an organisation is actually carried out by a purchasing department or a specialist. In particular, the purchasing of so‐called non‐product‐related (NPR) items and services often takes place without the involvement of a purchasing department. In addition, despite the sometimes huge savings that reportedly are possible by involving a purchasing department, many managers and boards pay only modest attention to such opportunities. In this paper, a conceptual model is proposed that serves, in particular, to explain the Purchasing department’s limited and problematic involvement in a firm’s tactical NPR‐purchasing activities. Based on these explanations and results from a small empirical study, we draw conclusions and formulate implications for managers and purchasing specialists. Research implications are formulated as well.

Details

Management Decision, vol. 41 no. 9
Type: Research Article
DOI: https://doi.org/10.1108/00251740310500903
ISSN: 0025-1747

Keywords

  • Purchasing
  • Organizational design
  • Organizational buying behaviour

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Article
Publication date: 11 November 2014

Conceptualising the production offshoring organisation using the viable systems model (VSM)

Godfrey Mugurusi and Luitzen de Boer

The purpose of the paper is concerned with one of the main contributions from the field of management cybernetics, the Viable System Model (VSM) developed by Beer (1972)…

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Abstract

Purpose

The purpose of the paper is concerned with one of the main contributions from the field of management cybernetics, the Viable System Model (VSM) developed by Beer (1972). This paper analyses what happens in terms of the VSM when a firm engages in production offshoring.

Design/methodology/approach

The paper is conceptual and develops four propositions about the nature of variety balance that production firms face, and what adjustments they make in the original viable system, both in terms of the properties of one or more of the basic subsystems and in the network of couplings between them.

Findings

The paper shows the production offshoring organisation as a dynamic adaptive system in search of ways to cope effectively with external forces that undermine its viability. The paper discusses how VSM can advance production offshoring research by both supplementing and linking established approaches such as transaction cost economics, the resource-based view and the eclectic theory of international production.

Originality/value

This research highlights the effects of geographical expansion of the firm’s operation on the stability of the firm itself. Using the VSM perspective, the paper provides opportunities to systematically track the changes that occur in the production offshoring firm and diagnose what they imply for the viability of the system as a whole.

Details

Strategic Outsourcing: An International Journal, vol. 7 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/SO-10-2014-0026
ISSN: 1753-8297

Keywords

  • Offshoring
  • Outsourcing
  • Viable systems model
  • Backshoring
  • Production offshoring
  • International production

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