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Article

Ronald L. Schill

Since 1973–74, the beginning of the so‐called resources crunch, there has been an increased emphasis upon the role of the procurement function in strategic corporate

Abstract

Since 1973–74, the beginning of the so‐called resources crunch, there has been an increased emphasis upon the role of the procurement function in strategic corporate planning and management. The role of procurement has begun significant change in a number of companies, yet remains in basically an operational mode in others. However, strategic management has often been “borne” out of situational crises imposed by changing environmental factors, rather than as a result of recognition of the strategic potential which management has. In essence, changes often come through reaction to problems, rather than through positive recognition and implementation of strategic management as an initiative itself. This has been particularly true of procurement.

Details

International Journal of Physical Distribution & Materials Management, vol. 9 no. 2
Type: Research Article
ISSN: 0269-8218

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Article

Lu Weisheng, Anita M.M. Liu, Wang Hongdi and Wu Zhongbing

The purpose of this paper is to attempt to shed light on procurement innovation by examining two state-of-the-art procurement systems in China – an agent-construction…

Abstract

Purpose

The purpose of this paper is to attempt to shed light on procurement innovation by examining two state-of-the-art procurement systems in China – an agent-construction system (ACS or in Chinese Dai Jian Zhi) and public-private partnership (PPP), with special consideration given to the systems’ particular political, economic, social, technological, environmental, and legal (PESTEL) background.

Design/methodology/approach

The paper does so by using content analyses, semi-structured interviews, and a “PESTEL-Procurement Innovation” framework.

Findings

It is found that PPP has not been as popular as expected, while the ACS, which is little known to the international construction management community, is widespread in China. The study of ACS and PPP further reveals that congruence between a procurement system and its external PESTEL conditions is essential for procurement innovation.

Research limitations/implications

The “PESTEL-Procurement Innovation” framework could be a useful tool for devising procurement innovation; although there are many questions yet to be answered by further research.

Practical implications

The paper provides useful insights into procurement innovation, particularly when governments worldwide are searching for innovative procurement systems to help deliver public projects and services.

Originality/value

The paper possesses originality in that it tackles procurement innovation, an area that is under researched in construction management. It exhorts the re-connection between a procurement system and its external PESTEL conditions for devising bona fide procurement innovations.

Details

Engineering, Construction and Architectural Management, vol. 20 no. 6
Type: Research Article
ISSN: 0969-9988

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Article

JOHN E. TOOKEY, MICHAEL MURRAY, CLIFF HARDCASTLE and DAVID LANGFORD

Today there are a number of different types of procurement routes available for clients to choose from. Each different type of procurement (traditional, design and build…

Abstract

Today there are a number of different types of procurement routes available for clients to choose from. Each different type of procurement (traditional, design and build, management, etc.) has its own proponents and inherent strengths and weaknesses. Selection of optimal procurement systems is difficult, because even experienced clients cannot know all the potential benefits or risks for each system. Procurement is, therefore, a succession of ‘calculated risks’. Industry and academia have focussed research on reducing procurement risk through better procurementsystem selection methods. Current research considers procurement as a set of rationalistic decisions within a closed environment, aiming to produce generic, prescriptive rules for clients and advisers to use to select the ‘best’ procurement route for their project. This paper seeks to identify whether prescriptive procurement guidance was adhered to on a set of case study projects. It was found that clients usually selected appropriate procurement systems, and where an inappropriate system was selected, alterations were made in contract form to incorporate aspects of the ‘best’ procurement route.

Details

Engineering, Construction and Architectural Management, vol. 8 no. 1
Type: Research Article
ISSN: 0969-9988

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Article

Khi V. Thai

Academically, public procurement has been a neglected area of study even though governmental entities and public procurement practitioners have diligently worked to…

Abstract

Academically, public procurement has been a neglected area of study even though governmental entities and public procurement practitioners have diligently worked to improve public procurement practices. This article will identify common elements of public procurement knowledge through a brief analysis of the literature and will provide a summary of government efforts to improve public procurement practices. In addition, this article will comprehensively re-examine public procurement by using a systems approach as a method of inquiry. Finally, implications of the proposed public procurement system regarding future research and study will be discussed.

Details

Journal of Public Procurement, vol. 1 no. 1
Type: Research Article
ISSN: 1535-0118

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Article

G.P.P.S. Perera, T.M.M.P. Tennakoon, Udayangani Kulatunga, Himal Suranga Jayasena and M.K.C.S. Wijewickrama

The purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both…

Abstract

Purpose

The purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both procurement selection factors and existing procurement systems.

Design/methodology/approach

An abductive research stance is followed in this empirical study. Procurement selection factors were selected through a critical literature review which was followed by a quantitative questionnaire survey. The collected data were analysed using descriptive statistical analysis and relative important index.

Findings

The critical literature review outlined 46 procurement selection factors, out of which 26 factors were very important in steel building procurement selection. Short construction period and higher constructability of design are ranked at the top with the highest priority rating factors. Management-oriented procurement system was selected as the most appropriate procurement system for steel building constructions within the Sri Lankan context.

Research limitations/implications

The study is limited to widely use three procurement systems in Sri Lankan construction industry. Yet, the process followed in selecting the most appropriate procurement system could be applied for other contexts. The implications of the study are mainly identifying management-oriented procurement as the most suitable procurement method for steel building construction in Sri Lanka.

Practical implications

The systematic procedure of procurement method selection for steel building construction may use in the Sri Lankan construction industry to limit the resource loss due to wrong selection of procurement.

Originality/value

A study which critically and comprehensively presenting a procurement selection process for steel building construction is not recorded in Sri Lanka prior to this study.

Details

Built Environment Project and Asset Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-124X

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Article

Yang Wang, Jing Liu, Jian Zuo and Raufdeen Rameezdeen

The purpose of this paper is to investigate driving factors that improve the project management efficiency (PME) in centralized public procurement systems.

Abstract

Purpose

The purpose of this paper is to investigate driving factors that improve the project management efficiency (PME) in centralized public procurement systems.

Design/methodology/approach

Employees in four public-sector organizations in China were surveyed. The structural equation modeling was employed to examine the relationship amongst those variables.

Findings

Organizational culture (OC) is an effective method to improve PME, and employee quality is the most critical factor of OC in this system. Job satisfaction (JS) is another significant contributor to PME and satisfaction with fairness of salary in this system being the key factor of JS. Job analysis (JA) has indirect influence on PME through JS and OC, whereas the job structure in this system is the most critical factor for JA.

Practical implications

An operational way to improve PME is to implement it from the perspectives of employee, organization and technique. At the organizational level, it is imperative to strengthen the OC by a well-structured recruitment system and to improve PME via well-design training. At the person level, both financial (i.e. income and welfare) and career incentives (i.e. promotion opportunities and a sense of belonging) are proposed to achieve employees’ JS to improve PME. At the technique level, JA approach (i.e. job rotation) is recommended to enlarge the positive influence of OC and JS on PME. These can not only ensure the management professionalism in a centralized public procurement system but can also motivate employees and maximize PME.

Originality/value

PME in a centralized public procurement system will be improved by addressing these key factors and their interrelationships. This provides detailed pathways for the centralized public procurement system to achieve better PME via optimal OC and JS and reasonable JA in China. In addition, the institutional and administrative traditions may vary significantly across cities, regions and countries. Therefore, such contextual differences should be taken into consideration for the improvement of PME in a centralized public procurement system.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

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Article

Tashfeen Ahmad, Ruba Aljafari and Viswanath Venkatesh

Realizing value from information and communication technology (ICT) in procurement in developing countries is complex due to diverse stakeholders and intertwined…

Abstract

Purpose

Realizing value from information and communication technology (ICT) in procurement in developing countries is complex due to diverse stakeholders and intertwined procurement processes. The purpose of this paper is to examine the experience of the Government of Jamaica in leveraging ICTs as an intervention to transform its procurement operations and combat corruption.

Design/methodology/approach

The study examines conversations with employees in the Government of Jamaica to understand key milestones in its procurement history. Based on the view that the intervention context is an ecosystem where multiple and inconsistent views of the e-procurement system evolve over time, the study analyzes milestones to reveal key actions that contributed either to the initial success of or introduced challenges to the e-procurement system.

Findings

The findings suggest that inducing positive sentiments about the intervention through transparency will overcome a long history of negative sentiments about the initiatives of government bodies in general. Furthermore, positive sentiments may not be directly related to the e-procurement system.

Research limitations/implications

The study offers important insights that government bodies in similar contexts can apply to guide initiatives for transforming procurement operations. For instance, training should emphasize not only the technical aspects of the system from the perspective of different stakeholders but also their job descriptions. Future research may examine other initiatives in developing countries to compare the role of sentiments over time.

Originality/value

The study adopts a unique approach to understand the experience of a developing country in harnessing ICTs to transform procurement operations.

Details

Internet Research, vol. 29 no. 6
Type: Research Article
ISSN: 1066-2243

Keywords

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Article

M. Ramkumar

The increasing complexity and dynamism of new technology implemented or to implement have imposed substantial uncertainties and subjectivities in the risk assessment…

Abstract

Purpose

The increasing complexity and dynamism of new technology implemented or to implement have imposed substantial uncertainties and subjectivities in the risk assessment process. This paper aims to present a risk assessment methodology for e-procurement implementation based on modified analytic network process (ANP) coupled with fuzzy inference systems.

Design/methodology/approach

ANP is modified in such a way that the experts can provide necessary data precise numerical value, a range of numerical values, a linguistic term or a fuzzy number. The proposed methodology incorporates knowledge and judgements obtained from experts to carry out identification of risk factors and to assess the risk magnitude of the identified risk factors based on factor index, risk likelihood and risk severity.

Findings

Risk magnitude of third party systems are found to be minor with a belief of 100 per cent, and for in-house systems, the risk is found to be between minor with a belief of 30 per cent and major of 70 per cent. The results indicate that by using the proposed methodology, the technological risk assessment of new technology can be done effectively and efficiently.

Research limitations/implications

Using the results of this study, the practitioners can better know the pros and cons of implementing both in-house and third party e-procurement systems.

Originality/value

The modified ANP is used mainly to structure and prioritize the diverse risk factors. Finally, an illustrative example on technological risk assessment of both in-house and third party e-procurement systems is used to demonstrate the applicability of the proposed methodology in real life situations.

Details

Strategic Outsourcing: An International Journal, vol. 9 no. 2
Type: Research Article
ISSN: 1753-8297

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Article

Mohan Kumaraswamy, Ekambaram Palaneeswaran and Paul Humphreys

A Hong Kong‐based study of factors affecting construction industry performance levels confirms that selection methodologies and decisions are critical, both at the…

Abstract

A Hong Kong‐based study of factors affecting construction industry performance levels confirms that selection methodologies and decisions are critical, both at the upstream formulation of procurement and operational systems themselves as well as the downstream selection of various project participants. Needs are identified for a holistic approach to broader procurement choices that incorporate all procurement sub‐systems, an integration with synergistic operational sub‐systems and more informed and intelligent participant choices. The many interacting variables and potential information overload point to the consequential need for harnessing IT/IS (information technology/information systems) to enable smarter selections at all stages of the construction supply chain. Frameworks and sample modules of the proposed knowledge‐based decision aids are presented in the case of overall procurement system selection and contractor selection.

Details

International Journal of Physical Distribution & Logistics Management, vol. 30 no. 7/8
Type: Research Article
ISSN: 0960-0035

Keywords

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Article

Wee Shu Hui, Radiah Othman, Normah Hj Omar, Rashidah Abdul Rahman and Nurul Husna Haron

This study was undertaken with the aim of surveying the perception of the two main stakeholders in procurement system; the contractors and the procurement officers on…

Abstract

Purpose

This study was undertaken with the aim of surveying the perception of the two main stakeholders in procurement system; the contractors and the procurement officers on issues such as accountability, transparency, corruption, integrity and cronyism pertaining to the public procurement system in Malaysia.

Design/methodology/approach

Interviews were conducted over a nine‐month period in 2007 to gauge the perception of the procurement officers and contractors on procurement issues in Malaysia. The interview data were then transcribed and grouped according to six main themes; transparency, procurement policies and procedures and its implementation, personnel involved in the procurement system, estimation/budget/pricing, professionalism and ethics and timeliness.

Findings

One of the common complaints made by the contractors was prevalence of interference from outside parties and cronyism, which affects the awarding of contracts. The procurement officers were blamed for malpractice and non‐compliance to the policies and procedures of the procurement system.

Practical implications

The paper deals with sensitive issues and takes several months to successfully gather respondents who willing to give feedback on their experience with the procurement system. The data are first hand information and are carefully transcribed and categorized into categories to help better understanding of the issues raised by the respondents.

Originality/value

The paper deals with sensitive issues and takes several months to successfully gather respondents who willing to give feedback on their experience with the procurement system. The data are first hand information and are carefully transcribed and categorized into categories to help better understanding of the issues raised by the respondents and the private sector.

Details

International Journal of Public Sector Management, vol. 24 no. 6
Type: Research Article
ISSN: 0951-3558

Keywords

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