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Article
Publication date: 8 January 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…

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

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Article
Publication date: 6 May 2014

Markus Amann, Jens K. Roehrich, Michael Eßig and Christine Harland

The purpose of this paper is to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers and their achievement…

Abstract

Purpose

The purpose of this paper is to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers and their achievement through contract award.

Design/methodology/approach

Two hypotheses based on extant literature and the inducement–contribution theory were tested by means of a survey of 281 procurement files from 2007 to 2009 relating to eight product categories and four European Union (EU) member states. Data were analyzed using structural equation modeling.

Findings

Findings indicate that public procurement was more effective in influencing socially responsible goals than environmental goals. In terms of supplier readiness, vendors achieved greater progress in delivering green than socially responsible operations.

Research limitations/implications

The collection and analysis of data are based on procurement files, which is a new but also a complex procedure. In comparison to survey data, the data from procurement file analysis are less biased.

Practical implications

Public procurement practitioners and sustainability policymakers should consider the use of public procurement as a lever to attain environmental and socially responsible goals.

Social implications

Evidence has been provided to demonstrate the strategic use of public procurement impacts on environmental and socially responsible goals, thereby benefiting society.

Originality/value

This study contributes in three main ways: first, by adding to existing, limited research on the use of public procurement as a lever of policy goals attainment; second, by examining environmental and socially responsible policy in one study; and third, through providing evidence across EU member states.

Details

Supply Chain Management: An International Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 8 March 2013

Andreas Glas, Erik Hofmann and Michael Eßig

The purpose of this research is to analyse military logistics providing a decision support instrument for contracting in defence supply chains.

Abstract

Purpose

The purpose of this research is to analyse military logistics providing a decision support instrument for contracting in defence supply chains.

Design/methodology/approach

This instrument – the Performance‐Based Logistics (PBL) portfolio – is developed following the contingency approach. Qualitative interviews and illustrative examples from Germany, Austria and Switzerland are used to validate the portfolio.

Findings

The proposed portfolio examines a military demand in respect of its required effectiveness (robustness and resilience), and the suppliers' ability to influence efficiency (forecast and supply risk). In combination, the contingencies are used to recommend three alternative types of PBL contracting.

Research limitations/implications

This paper is based on conceptual work with illustrative case examples. Therefore, although the authors believe that the PBL portfolio provides useful guidance for further research, the empirical applicability of this instrument must be proven.

Originality/value

The research on PBL is gaining importance, but still there remains a deficiency of theoretical grounding and management instruments. This study is a first approach to use the contingency framework for developing such an instrument. The value of the PBL portfolio lies in supporting normative decision making for contracting military supply.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

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Article
Publication date: 22 March 2020

Temidayo O. Akenroye, Jonathan D. Owens, Jamal Elbaz and Olatunde A. Durowoju

Although small- and medium-sized enterprises (SMEs) play major roles in most economies in terms of job creation, innovation and contribution to national income, they are…

Abstract

Purpose

Although small- and medium-sized enterprises (SMEs) play major roles in most economies in terms of job creation, innovation and contribution to national income, they are often underrepresented in public procurement markets. This paper aims to explore how the dynamic capabilities theory can improve SME participation in public procurement.

Design/methodology/approach

Through a systematic literature review, the paper identifies common barriers to the effective participation of SMEs in public procurement and explores the applicability of the dynamic capabilities theory in addressing these barriers.

Findings

A theoretical analysis was conducted to identify possible relationships between the factors reported in the literature as barriers to SME participation in public procurement and different components of the dynamic capabilities of firms (i.e. sensing, seizing, reconfiguring and learning). Seven key propositions were generated to guide future research.

Research limitations/implications

Despite its contributions, this paper is based solely on a systematic literature review and theoretical analysis. Future studies could use meta-analysis to review multiple studies relating to the nexus between SMEs and public procurement, hence improving methodological rigour.

Practical implications

The paper contributes to the ongoing debate about whether and how SMEs can leverage their resources and capabilities to develop self-help strategies to improve participation in public procurement, an area yet underexplored in the literature.

Originality/value

This is one of the few studies examining the implications of firm-level capabilities of SME activity in public procurement markets. The findings may be beneficial to SME managers/owners, particularly regarding firms' ability to leverage resources and capabilities to participate effectively in public procurement.

Details

Business Process Management Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

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Article
Publication date: 8 July 2019

Andreas Herbert Glas, Clarissa Raithel and Michael Essig

In performance-based contracting (PBC), the provider is paid according to outcomes for its customer, and therefore assumes responsibility for customer risks. Previous…

Abstract

Purpose

In performance-based contracting (PBC), the provider is paid according to outcomes for its customer, and therefore assumes responsibility for customer risks. Previous studies have revealed that risk exposure is a fundamental influencing factor. Thus, the purpose of this paper is to analyze how previous experience with PBC influences the perception of risks.

Design/methodology/approach

This research is based on a cross-industry study. Factor analysis and discriminant analysis are used to reveal to what extent experience influences PBC risk factors.

Findings

It is confirmed that risk perception differs significantly according to previous PBC experience. Thus, significant learning effects are identified in the PBC context.

Research limitations/implications

Experiential learning in PBC can explain entry barriers to PBC faced by new buyers with low levels of experience. Although the internal validity of the sample is high, as all analyzed cases represent PBC buying companies, there are limitations related to external validity.

Practical implications

To manage risks this study provides a structure (12 risks, 3 aggregated factors), which could be used for risk evaluation and strategic and operative risk management. Other implications recommend, e.g., to collaborate with a PBC “veteran” when entering into PBC, as this boosts the level of PBC-related experience.

Originality/value

The findings of this study contribute to identifying PBC risks through the explorative statistical assessment of these PBC risk factors.

Details

International Journal of Productivity and Performance Management, vol. 68 no. 6
Type: Research Article
ISSN: 1741-0401

Keywords

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Article
Publication date: 5 November 2018

Andreas H. Glas, Florian U. Henne and Michael Essig

Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the…

Abstract

Purpose

Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service performance with the aim of providing monetary incentives to safeguard possible outcomes as much as possible for the PBC customer. Performance measurement and its management are crucial for PBC success and, in particular, for the pay-for-performance link. However, the literature on PBC performance management is rather sparse, and there has been no systematic review on the topic. Thus, the purpose of this paper is to fill that gap and to present a comprehensive and systematic review of performance measurement and management in the PBC context.

Design/methodology/approach

The paper builds on a literature review based on a sample of 102 subject-relevant articles from academic journals. The content analysis follows a two-step procedure. First, the articles are coded following a process-based research framework. Second, the content of each process step is assessed in a qualitative text analysis.

Findings

The results show a surprising scarcity of papers that explicitly address performance management topics in the context of PBC. Only the topics of performance specification and performance indicators are broadly addressed, whereas in all of the other areas, e.g., strategic alignment, data capture and reporting, only limited specific findings could be found.

Research limitations/implications

The paper concludes that future research on performance management in PBC should expand its theoretical framework and empirical efforts in four specific proposed directions.

Originality/value

The paper provides an up-to-date review that is focused on performance management and measurement in the emerging context of PBC.

Details

International Journal of Operations & Production Management, vol. 38 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 1 April 2019

Andrea S. Patrucco, Davide Luzzini, Antonella Moretto and Stefano Ronchi

The purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best…

Abstract

Purpose

The purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts from suppliers involved in collaborative initiatives.

Design/methodology/approach

The paper develops a theoretical framework tested through an international survey with a structured equation modeling approach.

Findings

Results confirm that customer attractiveness positively affects both innovation and cost performance ensured by suppliers. Moreover, several direct and indirect antecedents of customer attractiveness are identified, including characteristics of the buying firm’s procurement department (i.e. procurement knowledge and procurement status) and supply chain relationship characteristics (i.e. proficiency of supplier collaboration and visibility).

Research limitations/implications

Because of the survey approach, the research results are limited to the data collected.

Practical implications

Findings support the relevance of collaborative relationships in improving performance, and the key role procurement department could play in managing the multifaceted aspects of supplier collaboration.

Originality/value

This paper investigates, on the one hand, why customer attractiveness is relevant for supply chain management, and what are the effects on innovation and cost performance ensured by suppliers; on the other hand, antecedents of customer attractiveness are considered, with a main focus on organizational and relational procurement variables.

Details

Business Process Management Journal, vol. 25 no. 2
Type: Research Article
ISSN: 1463-7154

Keywords

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