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Article
Publication date: 27 June 2019

Samuel Laryea

Construction project management outcomes in the literature typically portray significant deviations from expected outcomes. Various theories from studies that focus superficially…

1398

Abstract

Purpose

Construction project management outcomes in the literature typically portray significant deviations from expected outcomes. Various theories from studies that focus superficially on causes of project cost and time overruns rather than root causes have not addressed this problem. The need is for a better understanding of how procurement strategy provides a fundamental means to address this problem. The purpose of this paper is to examine the procurement strategy used to deliver a new universities project in South Africa within budget and to ascertain its influence on the outcomes.

Design/methodology/approach

A case study was designed to provide a comprehensive and intensive methodology to identify and examine the construction procurement strategy and its influence on the project outcomes. Document analyses and semi-structured interviews were used to collect data on the construction procurement strategy and outcomes from the client team.

Findings

The evidence brought forward demonstrates that the successful outcome was largely a consequence of the client team, procurement strategy and systems of delivery. However, the collaborative procurement strategy formed the basis of the successful project delivery and outcomes. A general observation from the data is that an appropriate construction procurement strategy developed by an experienced client team and proactively implemented by an integrated delivery team working collaboratively is likely to achieve the intended project outcomes.

Practical implications

The findings show three critical keys to achieving intended outcomes – people, procurement strategy and systems of delivery at the governance, portfolio, programme and project management levels.

Originality/value

The value of this paper lies in using a comprehensive methodology to study the relationship between procurement strategy and outcomes. The findings can be applied by client teams to achieve better outcomes and value for money in infrastructure projects.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 3 July 2023

Siraj Ahmed, Jukka Majava and Kirsi Aaltonen

The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE…

3356

Abstract

Purpose

The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE implementation in construction projects.

Design/methodology/approach

A qualitative research approach with abductive reasoning was adopted. The empirical data were collected from the construction industry in the United Arab Emirates (UAE).

Findings

The results reveal that clients, consultants and contractors have limited awareness, knowledge and motivation to implement CE in construction projects. The absence of incentives to design projects following CE principles, lack of involvement of contractors and suppliers, non-use of materials that use CE principles and current procurement strategies are the main challenges for the implementation of CE in the UAE.

Originality/value

Previous research offers limited knowledge on CE and its implementation in construction projects particularly from a procurement strategy perspective. The findings of the study provide new knowledge of the benefits, challenges and role of procurement strategy for implementing CE. It is suggested that collaborative and partnering-based procurement methods are needed to facilitate the effective implementation of CE.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 13 October 2020

Henrico Plantinga, Hans Voordijk and André Dorée

While the need for strategic alignment in public management has been recognized, there is a lack of conceptual clarity to support its application in practice. Focusing on the…

Abstract

Purpose

While the need for strategic alignment in public management has been recognized, there is a lack of conceptual clarity to support its application in practice. Focusing on the specific field of public procurement, this paper clarifies and illustrates how the concept of strategic alignment can be applied when strategizing the public procurement process.

Design/methodology/approach

The current literature on strategic alignment in public procurement is critically reviewed to identify ambiguities that hamper its application in practice. Based on this review, an analytical framework is developed that conceptualizes strategic alignment as that between the procurement instruments used in a sourcing project and the corresponding higher-level strategies. The framework is empirically illustrated by applying it in a case study that reconstructs the procurement strategy for an innovation project

Findings

Strategic alignment in the public procurement process can be demonstrated by identifying, explicating and logically linking reasoning and trade-off decisions on competing priorities across multiple levels and dimensions of strategy

Originality/value

Although creating alignment between policy and public procurement practice is generally held to be important in the public management literature, it is only discussed on high levels of abstraction. This paper provides clarity by investigating alignment in greater detail.

Details

International Journal of Public Sector Management, vol. 33 no. 6/7
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 14 July 2023

Sara Hajmohammad, Robert D. Klassen and Stephan Vachon

Buying firms are increasingly exposed to sustainability risk arising from negative conditions or potential events in their supply base that might provoke adverse stakeholder…

Abstract

Purpose

Buying firms are increasingly exposed to sustainability risk arising from negative conditions or potential events in their supply base that might provoke adverse stakeholder reactions. Procurement managers at these firms can pursue multiple strategies to address this risk with suppliers, including acceptance, monitoring-based mitigation, avoidance and collaboration-based mitigation. This study aims to investigate how perceived risk, supplier dependence and financial slack resources contribute to the strategic preferences of these managers.

Design/methodology/approach

A vignette-based experiment with procurement managers is used to examine the factors affecting the managers’ strategic preferences in managing supplier sustainability risk.

Findings

The empirical results revealed that the procurement managers’ preference for avoidance or collaboration strategies was stronger when they perceived higher risk, but their preference varied based on the degree of supplier dependence. Specifically, when they perceived a high level of risk, procurement managers were more inclined toward a monitoring strategy with dependent suppliers and preferred an avoidance strategy when they dealt with independent ones. Financial slack was also an influential factor: managers with more slack at their disposal preferred to collaborate with suppliers to address the risk; on the other hand, limited slack shifted their preference toward an acceptance strategy, regardless of the level of risk.

Originality/value

This study helps to develop a more nuanced picture of how procurement managers make challenging and complex trade-offs when responding to supplier sustainability risk.

Details

Supply Chain Management: An International Journal, vol. 29 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 October 2003

Daniel Knudsen

This paper presents a framework for assessing alignment between corporate strategy, procurement strategy and purchasing tools. The framework is built on generation of rents as its…

13503

Abstract

This paper presents a framework for assessing alignment between corporate strategy, procurement strategy and purchasing tools. The framework is built on generation of rents as its common denominator for assessing alignment between the levels. Three types of rents are identified: monopoly rents; Ricardian rents and entrepreneurial rents. The framework is then used for assessing the strategic origin of the following e‐procurement applications: e‐sourcing, e‐tendering, e‐informing, e‐reversed auctions, e‐MRO, Web‐based enterprise resource planning and e‐collaboration. The results indicate that the e‐procurement tools are fully viable for creating monopoly rents, moderately viable for creating Ricardian rents and only somewhat viable for creating entrepreneurial rents. Therefore, it is necessary to first understand how the firm generates rents before procurement strategy and e‐procurement tools are implemented in order to avoid misalignment.

Details

International Journal of Physical Distribution & Logistics Management, vol. 33 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 8 May 2017

Andrew Arnette and Barry Brewer

The purpose of this paper is to examine the role of strategy and concurrent engineering (CE) in driving design for procurement (DFP) actions and results via the role of…

Abstract

Purpose

The purpose of this paper is to examine the role of strategy and concurrent engineering (CE) in driving design for procurement (DFP) actions and results via the role of procurement professionals in new product development (NPD). The strategies of cost leadership, differentiation, and a hybrid approach are compared, and sequential NPD is compared to a CE approach within a DFP context.

Design/methodology/approach

ANOVA was applied to survey data collected for a series of items capturing the activities and characteristics relating to procurement for a new product design, as well as the performance of the product compared to other design events in the firm.

Findings

Several major findings were supported through the analysis. Product-level strategy played a limited role, at best, in driving the implementation of procurement activities and product performance. In contrast, high CE intensity was shown to improve procurement activity and product performance. The results were analyzed along the three dimensions of sustainability, and were especially strong for both environmental and economic-focused activities and performance.

Practical implications

Managers should work to integrate procurement early into NPD activities, ensure procurement uses strategy to drive decisions, and can use DFP initiatives from this research to implement a DFP program.

Originality/value

This research is one of the first attempts to empirically test design-for (DFX) approaches in NPD. It creates one of the first theoretical frameworks for DFX-related research.

Details

The International Journal of Logistics Management, vol. 28 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 January 1989

Barry Sutton

Procurement can be seen as a key element in any organisational corporate strategy. The development of a procurement strategy is examined, discussing insights gained in the…

Abstract

Procurement can be seen as a key element in any organisational corporate strategy. The development of a procurement strategy is examined, discussing insights gained in the application of such a policy within an international drinks and leisure organisation.

Details

International Journal of Wine Marketing, vol. 1 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 14 July 2022

Veer Shivajee, Rajesh Kumar Singh and Sanjay Rastogi

This study aims to provide a rich learning opportunity from COVID-19 crisis for making resilient supply chain by adopting new strategies for the procurement system.

1664

Abstract

Purpose

This study aims to provide a rich learning opportunity from COVID-19 crisis for making resilient supply chain by adopting new strategies for the procurement system.

Design/methodology/approach

The systematic literature review has been conducted from the year 2012 to 2022 with the objective of developing procurement system for resilient supply chain. Fifty-four research papers are selected for this study.

Findings

The study exhibits that procurement function makes a significant contribution in creating supply chain resilience in the time of COVID-19 pandemic. The COVID-19 emergency has enforced companies to operate in new ways to face supply chain disruptions. The new strategies and actions appropriate for resilient procurement system have been identified.

Research limitations/implications

This study is limited to the papers that were indexed in the Scopus database. It has also been limited to the procurement function and supply chain resilience.

Practical implications

This research highlights strategies for supply chain resilience to improve the business performance in COVID-19 or similar types of crisis.

Originality/value

The originality of this paper is to identify the strategies and new practices followed in procurement function to improve the supply chain resilience. This study suggests directions for future research on the integration of procurement and manufacturing for making resilience in the supply chain.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 1 March 2017

Andrea Stefano Patrucco, Davide Luzzini and Stefano Ronchi

The paper aims to evaluate the state of the literature on public procurement through examination of the works published in the Journal of Public Procurement from 2001 to 2014. 231…

1524

Abstract

The paper aims to evaluate the state of the literature on public procurement through examination of the works published in the Journal of Public Procurement from 2001 to 2014. 231 research outputs were collected and analyzed (with regard to, e.g., the background theory used, research method, and content of the papers), providing a overview of prior research topics and findings and identifying main gaps in the existing literature. This type of study is unique, as a broad literature review related to public procurement does not currently exist; therefore, the work has been designed with the intention to a) synthetize the prior research on public procurement; b) provide researchers with a structural framework in which future research on public procurement topics may be oriented; c) identify promising and active areas for future research.

Details

Journal of Public Procurement, vol. 17 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 July 1993

Shan Rajagopal and Kenneth N. Bernard

The progressive dismantling of trade barriers emphasizes the needfor companies to compete effectively in open markets not only forbusiness but also for supplies and suppliers…

2204

Abstract

The progressive dismantling of trade barriers emphasizes the need for companies to compete effectively in open markets not only for business but also for supplies and suppliers. Puts forward a framework for global procurement management to conceptualize current practices and to act as a guide to practitioners. Draws on existing globalization literature and examines the extent of consonance between the marketing and procurement environments, concluding that, whilst the conceptual models may be transferable and “stages” of globalization of procurement may be identified, there is no proof of sequential progress; neither is the link between global marketing and global procurement necessarily two‐way in nature. Postulates modes of involvement in global procurement as a continuum, where positioning for an individual firm depends on situation‐specific trade‐offs between their preferred corporate strategies and the benefits to be gained from involvement in foreign supply markets over time.

Details

Marketing Intelligence & Planning, vol. 11 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

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