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1 – 10 of 430Johanna Maria Liljeroos-Cork and Kaisu Laitinen
Infrastructure forms a basis for the operations and sustainability of the modern society. This paper aims to recognize value creation from the infrastructure procurement ecosystem…
Abstract
Purpose
Infrastructure forms a basis for the operations and sustainability of the modern society. This paper aims to recognize value creation from the infrastructure procurement ecosystem perspective to achieve those goals. The pursuit of enhancing value creation involves an examination of infrastructure procurement challenges, boundaries as well as boundary spanners that facilitate effective knowledge transfer and interaction.
Design/methodology/approach
The qualitative study is based on content analysis of 25 thematic interviews. Data was transcribed and coded via Atlas.ti software.
Findings
Infrastructure procurement value creation challenges appear complex and related to boundaries that hamper collaboration, coordination and knowledge sharing. Our results show that these boundaries locate within and between different levels of procurement ecosystem. Therefore, value creation in infrastructure procurement requires boundary spanners for leveraging knowledge sharing and interaction. Artifacts, discussion, processes and brokers as identified boundary spanners are strongly nested and interrelated in the industry. Special attention should be given to supporting individuals to act as brokers, since they play the key roles in trust building, culture steering and usage of other boundary spanners.
Social implications
Promoting value creation in infrastructure procurement helps to achieve socio-economic development goals.
Originality/value
This study offers a unique perspective on value creation in the context of infrastructure by adopting an ecosystem lens and examining boundary crossing mechanisms. The results support future development of collaboration and knowledge sharing practices fostering procurement productivity.
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Barbara Orser, Xiaolu (Diane) Liao, Allan L. Riding, Quang Duong and Jerome Catimel
This paper aims to inform strategies to enhance public procurement opportunities for women-owned small- and medium-sized enterprises (SMEs). To do so, the study examines two…
Abstract
Purpose
This paper aims to inform strategies to enhance public procurement opportunities for women-owned small- and medium-sized enterprises (SMEs). To do so, the study examines two research questions: To what extent are women-owned enterprises under-represented among SME suppliers to government; and Do barriers to public procurement – as perceived by SME owners – differ across gender?
Design/methodology/approach
The study draws on the resource-based view (RBV) of the firm and on theories of role congruity and social feminism to develop the study’s hypotheses. Empirical analyses rely on comparisons of a sample of 1,021 SMEs that had been suppliers to government and 9,376 employer firms that had not been suppliers to government. Data were collected by Statistics Canada and are nationally representative. Logistic regression analysis was used to control for systemic firm and owner differences.
Findings
Controlling firm and owner attributes, majority women-owned businesses were underrepresented as SME suppliers to government in some, but not all sectors. Women-owned SMEs in Wholesale and Retail and in Other Services were, ceteris paribus, half as likely as to be government suppliers as counterpart SMEs owned by men. Among Goods Producers and for Professional, Scientific and Technical Services SMEs, there were no significant gender differences in the propensity to supply the federal government. “Complexity of the contracting process” and “difficulty finding contract opportunities” were the obstacles to contracting cited most frequently.
Research limitations/implications
The limitations of using secondary analyses of data are well documented and apply here. The findings reflect only the perspectives of “successful bidders” and do not capture SMEs that submitted bids but were not successful. Furthermore, the survey did not include questions about sub-contractor enterprises, data that would likely provide even more insights about SMEs in government supply chains. Accordingly, the study could not address sub-contracting strategies to increase the number of women-owned businesses on government contracts. Statistics Canada’s privacy protocols also limited the extent to which the research team could examine sub-groups of small business owners, such as visible minorities and Indigenous/Aboriginal persons. It is also notable that much of the SME literature, as well as this study, define gender as a dichotomous (women/female, men/male) attribute. Comparing women/female and men/males implicitly assumes within group homogeneity. Future research should use a more inclusive definition of gender. Research is also required to inform about the obstacles to government procurement among the population of SMEs that were unsuccessful in their bids.
Practical implications
The study provides benchmarks on, and directions to, enhance the participation of women-owned SMEs or enterprises in public procurement. Strategies to support women-owned small businesses that comply with United Nations Sustainable Development Goals are advanced.
Social implications
The study offers insights to reconcile economic efficiency and social (gender equity) policy goals in the context of public procurement. The “policy-practice divides” in public procurement and women’s enterprise policies are discussed.
Originality/value
The study is among the first to use a feminist lens to examine the associations between gender of SME ownership and public procurement, while controlling for other salient owner and firm attributes.
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Karen A.F. Landale, Rene G. Rendon and Timothy G. Hawkins
The purpose of this research is to explore the effects of supplier selection method on key procurement outcomes such as procurement lead time (PLT), supplier performance and buyer…
Abstract
Purpose
The purpose of this research is to explore the effects of supplier selection method on key procurement outcomes such as procurement lead time (PLT), supplier performance and buyer team size.
Design/methodology/approach
Data were collected from a sample of 124 archival contract records from the US Department of Defense. A multiple regression model and multivariate analysis of covariance/analysis of covariance models were used to test the effects of source selection method on pertinent procurement outcomes.
Findings
The trade-off (TO) source selection method increases PLT, as does the number of evaluation factors and the number of proposals received. Substantially larger sourcing teams are also associated with the TO source selection method. Nonetheless, the TO method results in better supplier performance.
Practical implications
TO source selections yield superior supplier performance than low-bidder methods. However, they are costly in terms of time and personnel. Any assessment of supplier value should consider not only the price premium for higher performance but also the transaction costs associated with the TO method.
Originality/value
Very little research addresses a buying team’s evaluation of supplier-offered value ex ante and whether that value assessment materializes into actual value-added supplier performance. Low bidder tactics are pervasive, but price (i.e. sacrifice) is only one component of value. Benefits from superior supplier performance may yield greater overall value. If value is critical to the buyer, a TO source selection method – versus a low-bidder approach – is the appropriate tool because of higher supplier performance ex post.
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Elina Karttunen, Aki Jääskeläinen, Iryna Malacina, Katrina Lintukangas, Anni-Kaisa Kähkönen and Frederik G.S. Vos
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Abstract
Purpose
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Design/methodology/approach
A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.
Findings
The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.
Social implications
Dynamic capabilities in public procurement are necessary to improve public procurement.
Originality/value
This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.
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Luís Jacques de Sousa, João Poças Martins and Luís Sanhudo
Factors like bid price, submission time, and number of bidders influence the procurement process in public projects. These factors and the award criteria may impact the project’s…
Abstract
Purpose
Factors like bid price, submission time, and number of bidders influence the procurement process in public projects. These factors and the award criteria may impact the project’s financial compliance. Predicting budget compliance in construction projects has been traditionally challenging, but Machine Learning (ML) techniques have revolutionised estimations.
Design/methodology/approach
In this study, Portuguese Public Procurement Data (PPPData) was utilised as the model’s input. Notably, this dataset exhibited a substantial imbalance in the target feature. To address this issue, the study evaluated three distinct data balancing techniques: oversampling, undersampling, and the SMOTE method. Next, a comprehensive feature selection process was conducted, leading to the testing of five different algorithms for forecasting budget compliance. Finally, a secondary test was conducted, refining the features to include only those elements that procurement technicians can modify while also considering the two most accurate predictors identified in the previous test.
Findings
The findings indicate that employing the SMOTE method on the scraped data can achieve a balanced dataset. Furthermore, the results demonstrate that the Adam ANN algorithm outperformed others, boasting a precision rate of 68.1%.
Practical implications
The model can aid procurement technicians during the tendering phase by using historical data and analogous projects to predict performance.
Social implications
Although the study reveals that ML algorithms cannot accurately predict budget compliance using procurement data, they can still provide project owners with insights into the most suitable criteria, aiding decision-making. Further research should assess the model’s impact and capacity within the procurement workflow.
Originality/value
Previous research predominantly focused on forecasting budgets by leveraging data from the private construction execution phase. While some investigations incorporated procurement data, this study distinguishes itself by using an imbalanced dataset and anticipating compliance rather than predicting budgetary figures. The model predicts budget compliance by analysing qualitative and quantitative characteristics of public project contracts. The research paper explores various model architectures and data treatment techniques to develop a model to assist the Client in tender definition.
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The purpose of this article is to analyse the weaknesses of governance institutions in constraining grand corruption arising from the government procurement of large…
Abstract
Purpose
The purpose of this article is to analyse the weaknesses of governance institutions in constraining grand corruption arising from the government procurement of large foreign-funded infrastructure projects in the Philippines. The weaknesses are revealed in the description and analysis of two major scandals, namely, the construction of the Bataan Nuclear Power Plant during the Marcos era and the National Broadband Network project of the Arroyo presidency.
Design/methodology/approach
This research employs a historical and comparative case approach to explore patterns of grand corruption and their resolution. Primary and secondary data sources including court decisions, congressional records, journal articles and newspaper reports are used to construct the narratives for each case.
Findings
Top-level executive agreements that do not require competitive public bidding provide an opportunity for grand corruption. Such agreements encourage the formation of corrupt rent-seeking relationships involving the selling firm, brokers, politicians and top-level government executives. Closure of cases of grand corruption is a serious problem that involves an incoherent and politically vulnerable prosecutorial and justice system.
Originality/value
This paper aims to contribute to research on grand corruption involving the executive branch in the Philippines, particularly in the procurement of large, foreign-funded government projects. It examines allegations of improprieties in government project contracting and the politics of resolving corruption scandals through the justice system.
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Abstract
Purpose
Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts is limited. This paper aims to explain and conceptualise recent Romanian experience with developing bespoke competency frameworks at national level for public procurement that reflect the features of the Romanian public procurement system. The approach used could guide in broad-brush, mutatis mutandis, other (national) public procurement systems with comparable features, mainly those seeking a shift from a rather administrative function of public procurement towards a strategic function.
Design/methodology/approach
This case study reflects on the methodology used for analysing the Romanian public procurement environment in EU context to develop bespoke professionalisation instruments, and on ways to integrate competency management approaches in Romanian public procurement culture. That methodological mix has been mainly qualitative and constructionist, within an applied research approach. It combined desk research with empirical research and included legal research in this context.
Findings
A principled, methodological and pragmatic approach tailored to the procurement environment in question is essential for developing competency frameworks capable to resonate to and address the specific practical needs of that procurement system.
Social implications
Competency frameworks can uphold societal objectives through public procurement.
Originality/value
Using valuable insights into the development of the Romanian public procurement competency frameworks, the paper provides a conceptual framework for instilling competency management approaches to public procurement professional development where the latter is governed by a rather distinct, public administration, paradigm. This conceptual framework can guide other public procurement systems and stimulate further research.
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Diego Vega, Ala Arvidsson and Félicia Saïah
This study investigated how organizations can maintain their supply chain (SC) resilience in situations where high-impact shocks cannot be absorbed and what capabilities are…
Abstract
Purpose
This study investigated how organizations can maintain their supply chain (SC) resilience in situations where high-impact shocks cannot be absorbed and what capabilities are needed. The article is an empirical exploration of a socio-ecological view of resilience in the SC context.
Design/methodology/approach
The case under study in this article is that of Médecins sans Frontières (MSF) and MSF's reconfiguration of its supply management processes in response to the supply shocks during the coronavirus disease 2019 (COVID-19) pandemic. In total, 503 internal documents and ERP extractions from six databases from late 2019 to September 2020, 43 semi-structured interviews and a 3-round policy Delphi process were used to investigate this phenomenon.
Findings
The authors' results show that throughout the pandemic, MSF adapted its procurement and supply processes to cope with supply shortages at both the international and local levels of the SC. This was possible due to the organization's capacity to use its exploitation and exploration capabilities of the organization at the same time.
Research limitations/implications
This research is based on the single in-depth case study of a medical aid organization. Further research should investigate this phenomenon in commercial companies with similar or different organizational structures.
Originality/value
This study constitutes a first attempt to empirically demonstrate that the four phases of the adaptive cycle put forth in the panarchy theory constitute a suitable representation of the reconfigurations that SCs follow in response to a high-impact shock. The study also adds to the growing body of knowledge on resilience by including ambidexterity as a mechanism to achieve resilience.
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