Search results

1 – 10 of 17
To view the access options for this content please click here
Article
Publication date: 21 February 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

To view the access options for this content please click here
Article
Publication date: 6 March 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

To view the access options for this content please click here
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…

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

To view the access options for this content please click here
Article
Publication date: 1 April 2017

Andreas H. Glas, Markus Schaupp and Michael Essig

In the EU and especially in Germany, public procurement is bound to a tight legislation that also sets and enforces strategic goals such as innovation or sustainability…

Abstract

In the EU and especially in Germany, public procurement is bound to a tight legislation that also sets and enforces strategic goals such as innovation or sustainability. The purpose of this paper is to analyze whether different archetypes of public procurement organizations (centralized or decentralized; state-level or local-level) perceive and implement strategic goals differently. A survey with data from 104 entities is used for this purpose. The findings reveal that the implementation of strategy is different in centralized or state-level organizations compared with decentralized or local organizations. Centralized organizations give goals such as innovation, transparency, and sustainability a high priority, while local ones highlight regional development and SME support

Details

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

To view the access options for this content please click here
Article
Publication date: 1 March 2012

Florian C. Kleemann, Andreas Glas and Michael Essig

Faced with reduced budgets and rising service expectations, public authorities are increasingly cooperating with private businesses. This paper examines an alternative…

Abstract

Faced with reduced budgets and rising service expectations, public authorities are increasingly cooperating with private businesses. This paper examines an alternative procurement- and service delivery concept, Performance-based Logistics (PBL). It has been introduced by the US and UK armed forces. However, other nations, such as Germany, are still reluctant to follow. This article has two aims: First, to identify the conceptual characteristics of PBL, and second, to analyze potential reasons why although PBL is popular in some nations, others are so reluctant to introduce it. This will be done using a mixed method approach. The concept of PBL will be introduced by deductively developing a conceptual model of PBL using a business model framework. The analysis of PBL application will be performed using an in-depth case study from the German defense sector. This will be framed by a literature review and concluded by managerial recommendations.

Details

Journal of Public Procurement, vol. 12 no. 2
Type: Research Article
ISSN: 1535-0118

To view the access options for this content please click here
Article
Publication date: 13 April 2015

Michael Essig, Andreas H. Glas and Josef Gutsmiedl

Given the high importance of information systems for procurement, surprisingly there have been little efforts to analyze the process and the relevant reasons for the…

Abstract

Purpose

Given the high importance of information systems for procurement, surprisingly there have been little efforts to analyze the process and the relevant reasons for the procurement decision of such systems from a stakeholder perspective. The purpose of this paper is to explore these aspects in the context of low-value (C-)parts.

Design/methodology/approach

Research is based on a case study in a pre-fabricator company in Germany and analyzes the process to procure a system for sourcing low-value parts.

Findings

As a finding, the procurement process and decision attributes have been integrated into a framework which supports corporate decision-making considering the procurement reasons of all involved stakeholders (internal departments, external customers and suppliers).

Research limitations/implications

Research is based on case study analysis. Findings are specific to case companies and the environment in which they operate. The framework should be tested further in different contexts.

Practical implications

The developed decision frame supports the evaluation of different sourcing information systems, including clearly measurable criteria but also qualitative or company-strategic decision attributes.

Originality/value

The combination of financial and other perspectives (operations, information technology (IT)-administration, system users, etc.), is used to evolve a robust ex-ante instrument for supporting buying decisions for procurement information systems. The case description also illustrates the findings and develops new insights about stakeholders and buying groups decision-making for information systems.

Details

Journal of Enterprise Information Management, vol. 28 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

To view the access options for this content please click here
Article
Publication date: 10 June 2021

Stephen Kelly, Donna Marshall, Helen Walker and John Israilidis

This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with…

Abstract

Purpose

This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with public sector procurement activities.

Design/methodology/approach

Qualitative data was collected from 20 interviews with a variety of suppliers to the UK public sector, which was then analysed using Nvivo and a series of empirically supported propositions developed.

Findings

The findings are combined into an integrated supplier satisfaction model, which explains how a multi-layered set of expectations (past and ideal) and quality dimensions (fairness, ambiguity, unnecessary information, tender focus, relationship irrelevance, unresponsiveness, outcome success) lead to dissatisfaction. This paper also establishes the implications of these judgments (non-response, poor quality and relationship impact) and that they are impacted by comparison to alternatives.

Practical implications

Supplier dissatisfaction can have serious ramifications for public sector buying organisations by reducing the pool of applicants, creating relationship barriers and a disconnect between the tender and the eventual services provided. This paper gives empirically derived advice to managers and policymakers on how to avoid these issues.

Social implications

Ensuring that as wide a pool of possible suppliers can respond to tender requests, means that the services that are provided by the public sector can make the most effective and efficient use of available resources. In addition, small to medium-sized enterprises may be encouraged to overcome their feelings of dissatisfaction and respond more frequently and readily to tender requests.

Originality/value

This paper contributes to the field of public sector procurement and in particular that which looks at increasing supplier satisfaction, by developing a supplier satisfaction model based on supplier generated data, which uses disconfirmation theory to explain the dynamics of how individuals make judgments by comparing perceptions of performance with a multi-layered set of expectations. This paper identifies service quality dimensions that influence satisfaction judgments and the implications of these judgments.

Details

Journal of Public Procurement, vol. 21 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Content available

Abstract

Details

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

To view the access options for this content please click here
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

To view the access options for this content please click here
Article
Publication date: 3 June 2019

Timo Kivisto and Veli Matti Virolainen

The purpose of this paper is to make a contribution for the unclear boundaries of public procurement in accounting terms. International organizations, public…

Abstract

Purpose

The purpose of this paper is to make a contribution for the unclear boundaries of public procurement in accounting terms. International organizations, public organizations’ national control entities and managers are interested in monetary spend. Public procurement literature and the system of national accounts lack proper definitions of public procurement in accounting terms or are framed by legal procedures.

Design/methodology/approach

The authors draft clear monetary definitions for procurement boundaries and develop an alternative, more refined bottom-up method of calculating public procurement spend.

Findings

The calculation for Finland is based on reliable secondary data and shows considerably higher procurement spend than traditional SNA statistics or procurement notices.

Originality/value

The calculation can be replicated in other countries using the 2008 SNA coding for organizations. The paper highlights the need to address in-house procurement in future research.

Details

Journal of Public Procurement, vol. 19 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

1 – 10 of 17