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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…

3351

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

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 remained…

2876

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

Open Access
Article
Publication date: 10 November 2022

Silke Herold, Jonas Heller, Frank Rozemeijer and Dominik Mahr

The purpose of this paper is to achieve a collective understanding of the capabilities required for digital procurement transformation (DPT).

7481

Abstract

Purpose

The purpose of this paper is to achieve a collective understanding of the capabilities required for digital procurement transformation (DPT).

Design/methodology/approach

The authors contextualize theory about dynamic capabilities (DCs) to integrate the fragmented body of literature on procurement digitalization by means of a systematic literature review (SLR). By extracting and clustering capabilities, as well as proven performance outcomes from existing literature in the field, the authors develop a conceptual model of the DCs required for DPT.

Findings

The authors first introduce and define DPT and the corresponding motivations that trigger firms to invest in advanced digital technologies. Second, by adopting the DC lens, the authors provide an overview of nine microfoundations required for DPT and highlight the strategic options procurement leaders can use when strategizing about adopting combinations of digital technologies. Third, the authors present a future research agenda on DCs for DPT.

Research limitations/implications

The developed conceptual model must be verified and enhanced through further empirical research.

Practical implications

The conceptual model can be used by procurement leaders as a starting point and framework when strategizing about digitally transforming the procurement organization.

Originality/value

The study is the first to synthesize previous research findings on procurement digitalization through an SLR in order to develop a fine-grained conceptual model that supports practitioners and researchers alike in better understanding the capabilities required for and potential performance outcomes of DPT.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 4
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 26 September 2022

Annukka Berg, Katriina Alhola, Juha Peltomaa and Satu Tietari

Public procurement is a major driving force that can be used to advance societal goals such as sustainability. The lack of strategic management and top-level commitment have been…

2465

Abstract

Purpose

Public procurement is a major driving force that can be used to advance societal goals such as sustainability. The lack of strategic management and top-level commitment have been found to be major hindrances to the promotion of sustainable public procurement (SPP). This study aims to examine the functioning of a successful Finnish SPP development programme, the KEINO Academy (2019–2020), that tackled these challenges in a holistic way.

Design/methodology/approach

The article is mainly based on qualitative analysis of interviews with 24 municipal representatives.

Findings

The KEINO Academy advanced SPP management through the following functions: legitimising SPP development work, structuring SPP development work, offering expert support and facilitating peer support. The functions were mainly able to meet the key challenges experienced by the participating municipalities. However, some challenges cannot be directly solved by an intermediary such as the KEINO Academy. These challenges include, for example, a lack of resources.

Social implications

On the basis of the study, SPP development programmes should: build a holistic working model; respect the versatility of the participating organisations; involve all the key people in the organisations, including the directors; and sustain change.

Originality/value

The main theoretical contribution is the combination of two streams of literature, those of SPP management and intermediary functions. Further, the article makes an empirical contribution by studying the KEINO Academy as a pioneering SPP development case.

Open Access
Article
Publication date: 2 April 2024

Șerban Filipon and Violeta Simionescu

Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts…

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.

Open Access
Article
Publication date: 7 August 2017

Per Erik Eriksson

The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.

12339

Abstract

Purpose

The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.

Design/methodology/approach

This paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.

Findings

The theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.

Research limitations/implications

This paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.

Practical implications

From a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.

Originality/value

The explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.

Details

Journal of Financial Management of Property and Construction, vol. 22 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Open Access
Article
Publication date: 26 July 2019

Simon van Zoest, Leentje Volker and Marleen Hermans

The purpose of this paper is to address the barriers that Dutch housing associations encounter in implementing new procurement strategies.

5424

Abstract

Purpose

The purpose of this paper is to address the barriers that Dutch housing associations encounter in implementing new procurement strategies.

Design/methodology/approach

Several aspects of purchasing, portfolio management, project delivery and supply management are discussed in relation to the changing role of housing associations as semi-public commissioning bodies in the Dutch construction industry, based on data derived from workshops with six Dutch housing associations.

Findings

Housing associations are adapting their procurement strategy towards a more integrative and performance-based approach to supply management. Due to the complexity of implementing this process, housing associations struggle especially with moving beyond pilot projects, increasing the maturity levels throughout the organisation and aligning new policies with daily practices at a tactical and an operational level.

Practical implications

Increased knowledge of change processes and seeing the potential of maturity models will be valuable for practitioners who are dealing with changes on the work floor.

Social implications

Client organisations are considered one of the key drivers of change in the construction industry. Insights into these particular organisational change processes contribute to the potential of industry reform.

Originality/value

Most studies on collaboration and integration in the supply chain focus on the inter-organisational level or on the supply side, rather than the internal organisation of the client.

Details

International Journal of Managing Projects in Business, vol. 13 no. 2
Type: Research Article
ISSN: 1753-8378

Keywords

Open Access
Article
Publication date: 13 October 2023

Roland Hellberg

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims…

1098

Abstract

Purpose

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).

Design/methodology/approach

This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.

Findings

Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.

Research limitations/implications

The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.

Practical implications

The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.

Originality/value

The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.

Details

Journal of Defense Analytics and Logistics, vol. 7 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Open Access
Article
Publication date: 16 August 2021

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…

4597

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.

Details

Journal of Public Procurement, vol. 21 no. 3
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 10 March 2023

Sini Laari, Harri Lorentz, Patrik Jonsson and Roger Lindau

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is…

2575

Abstract

Purpose

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.

Design/methodology/approach

This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.

Findings

Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.

Practical implications

The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.

Originality/value

The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.

Details

International Journal of Operations & Production Management, vol. 43 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

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