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1 – 10 of over 24000Since 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…
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.
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 system (ACS…
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.
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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.
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.
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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 procurement‐system 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.
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Abimbola Windapo, Abdulrauf Adediran, James Olabode Bamidele Rotimi and Nnedinma Umeokafor
This study aims to investigate whether clients’ knowledge about construction procurement systems influence project performance objectives and the role of procurement systems on…
Abstract
Purpose
This study aims to investigate whether clients’ knowledge about construction procurement systems influence project performance objectives and the role of procurement systems on project performance objectives in South Africa.
Design/methodology/approach
Using a two-round survey, 90 usable questionnaires from construction professionals in South Africa plus 3 expert clients were collected. The data were analysed using descriptive statistics – means, percentages and the analytical hierarchy process to determine the rank of client project performance criteria, while inferential statistics – Pearson product-moment correlation was used in establishing the relationship between the level of clients’ knowledge and project performance.
Findings
It was found that the common procurement systems used are traditional, followed by management-oriented and integrated procurement systems. In addition, it emerged that client’s knowledge of procurement systems shows a positive relationship with the achievement of project performance objectives. Based on these findings, it is concluded that some procurement systems being selected by clients in South Africa are inappropriately selected. This is despite the emergence of more efficient procurement systems. If procurement systems are selected based on the knowledge of the client, it will give better chances of a successful project outcome.
Practical implications
The research suggests the need for clients to seek ways to improve their understanding or increase their knowledge of procurement systems in construction. Policymakers’ responsibilities in driving policies that will place responsibilities on clients to seek a reasonable way to improve their knowledge where possible is implied in the study.
Originality/value
It contributes to improving project performance by examining whether the level of knowledge possessed by a client influences project performance.
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Academically, public procurement has been a neglected area of study even though governmental entities and public procurement practitioners have diligently worked to improve public…
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.
Leticia Mahuwi and Baraka Israel
Understanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial…
Abstract
Purpose
Understanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial for developing effective strategies and policies. This research seeks to investigate whether e-procurement plays a significant role in enhancing transparency and accountability and subsequently reducing corruption risks in the public pharmaceutical procurement system.
Design/methodology/approach
The study employed a cross-sectional questionnaire survey to gather data from 274 procurement personnel and pharmacists working in 28 government-owned hospitals in the Southern Highlands of Tanzania. The collected data were then analysed using confirmatory factor analysis (CFA) and the Hayes PROCESS macro to test the study hypotheses.
Findings
The study findings revealed a negative and significant relationship between transparency and procurement corruption (ß = −0.117, p < 0.008). Moreover, accountability negatively and significantly affects procurement corruption (ß = −0.162, p = 0.006). Furthermore, the findings indicate that, at a high degree of e-procurement system implementation, transparency and accountability have a stronger impact on procurement anti-corruption measures.
Practical implications
Policymakers and decision-makers should implement robust mechanisms that enhance transparency, accountability and anti-corruption efforts. These may include providing clear and accessible information on procurement processes, efficient mechanisms for monitoring and reporting procurement irregularities and continuous improvement of e-procurement systems. By incorporating these measures and nurturing collaboration amongst procurement stakeholders, it becomes possible to foster a procurement environment characterised by integrity, fairness, accountability and reduced corruption.
Originality/value
Whilst previous studies delved into exploring the effect of transparency and accountability on procurement anti-corruption, the novelty of this study is the inclusion of e-procurement as a moderating variable in the relationship between transparency, accountability and anti-corruption. By so doing, this study adds to the existing body of knowledge regarding anti-corruption measures and offers valuable practical insights for policymakers and professionals aiming to enhance transparency, accountability and ethical conduct within the public pharmaceutical procurement system.
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Dmaithan Abdelkarim Almajali, Tha’er Majali, Ra'ed Masa'deh, Mohmood Ghaleb Al-Bashayreh and Ahmad Mousa Altamimi
The commonly used e-procurement systems still show unsatisfactory implementation outcomes because many organisations are still unable to effectively interpret the initial adoption…
Abstract
Purpose
The commonly used e-procurement systems still show unsatisfactory implementation outcomes because many organisations are still unable to effectively interpret the initial adoption decision. The e-procurement systems are generally developed at organisational level, but their usage is at individual level, by the employees particularly. This paper examined technology acceptance model’s (TAM) key antecedents, involving e-procurement systems usage by employees in their daily activities. This study aims to examine the impact of factors affecting e-procurement acceptance among users through the mediating role of users’ attitude. The commonly used e-procurement systems still show.
Design/methodology/approach
TAM was applied and expanded in this study, in exploring the factors impacting the employees’ e-procurement acceptance. This study used quantitative method, and questionnaires were distributed to 200 users in Jordanian public shareholding firms. The collected data were quantitatively analysed using PLS modelling.
Findings
Significant TAM relationships involving e-procurement were affirmed. The expanded TAM in the scrutiny of antecedents showed that content, processing and usability affected perceived usefulness, while perceived convenience did not affect the usefulness factor. Furthermore, it was noticed that perceived ease of use was affected by usability and training, while perceived connectedness was not affected by usability and training.
Practical implications
The results demonstrated the necessity of e-procurement training. Furthermore, at the start of the implementation stage, effective design on system navigation and system usability, and consistent support, could increase use effectiveness and acceptance. Also, expedient information and buyer–supplier product flows should be made available.
Originality/value
Most organizations invest a lot of time and money in installing e-procurement systems to deliver their goods at the right time and at the right price. However, many of these e-procurement systems have failed due to low acceptance among users. Thus, to the best of the authors’ knowledge, this is the first study that used TAM and theory of planned behaviour in examining the effects of perceived convenience, perceived connectedness, content, training, processing and usability factors, in Jordanian firms. Lastly, the focus of this study was on the individual employee’s acceptance, rather than on the organisational-level adoption, as the unit of analysis, to provide insight on how organisations can achieve maximally from e-procurement investments and from other comparable technologies of e-supply chain management.
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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.
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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 procurement…
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.
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