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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…

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

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…

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: 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…

12337

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: 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…

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…

1983

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

Open Access
Article
Publication date: 5 May 2022

Elina Karttunen, Mika Matela, Jukka Hallikas and Mika Immonen

Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have…

Abstract

Purpose

Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained limited. This research takes the perspective of suppliers and aims to investigate the innovativeness of suppliers and the impact of supply chain ambidexterity strategies on their perceptions about public procurement in terms of innovation enablers and customer attractiveness.

Design/methodology/approach

This research draws from a survey of 137 suppliers to the public sector in Finland and applies PLS-path modeling to test its hypotheses.

Findings

The findings reveal that the ambidexterity strategy of suppliers in the supply chain influences how they perceive the innovation enablers and customer attractiveness of public organizations since processes of public procurement do not support these strategies fully. Supplier innovativeness has an influence on the perceived innovation enablers of public procurement, which, in turn, influences customer attractiveness.

Practical implications

The innovativeness and strategies of suppliers for the supply chain have an impact on how attractive they perceive public procurement. The findings of this research provide insights on why the customer attractiveness of public procurement may not be high enough to secure the competition in their bidding processes.

Originality/value

The study’s contribution adds to the field of buyer–supplier relationships and customer attractiveness in public procurement by showing the importance of innovation enablers and highlighting the impact of supplier's ambidexterity in the supply chain on their perceptions about public procurement.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 January 2016

Henrico Plantinga and André Dorée

– The purpose of this paper is to provide insights into the reasoning behind the development of new procurement approaches by public sector clients.

1961

Abstract

Purpose

The purpose of this paper is to provide insights into the reasoning behind the development of new procurement approaches by public sector clients.

Design/methodology/approach

A case study approach focuses on a procurement development process by a public sector client. It investigates the reasoning behind various applications of the project alliancing concept in rail infrastructure projects over a period of 15 years. Alliancing applications are singled out and mapped against a number of criteria derived from literature on alliancing. The reasoning behind these applications and their differences are reconstructed from contextual documentation. Theories and concepts from the fields of strategic management and knowledge management literature are used to analyse the results.

Findings

The development process seems to be evolutionary rather than deliberately planned. The uncovered variations in alliancing applications can only to a very limited extent be explained by the reconstructed reasoning. This suggests that the applied designs are mostly based on implicit reasoning by individual project teams. From a strategic management perspective, the development pattern resembles the emergent type of strategy formation.

Originality/value

This study offers an initial insight into the reasoning processes behind the (re-)design of procurement approaches within a public sector client organization. A unique feature of this study is that these reasoning processes are explored from the strategy formation perspective that conceptually links the design of new procurement approaches to strategic management theory.

Details

International Journal of Managing Projects in Business, vol. 9 no. 1
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 1 March 1979

Ronald L. Schill

Recent years of shortages, inflation, and rapid advances in technologies causing product obsolescence and tremendous cost decreases—such as integrated circuits—have had…

Abstract

Recent years of shortages, inflation, and rapid advances in technologies causing product obsolescence and tremendous cost decreases—such as integrated circuits—have had pronounced effects on procurement strategy. This article examines several key issues which will shape procurement strategy in advanced technology organisations over the next decade.

Details

International Journal of Physical Distribution & Materials Management, vol. 9 no. 6
Type: Research Article
ISSN: 0269-8218

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