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1 – 10 of over 17000Due to the scope of procurement in the public sector, public procurement policy has the potential to shape the behavior of market actors and promote the growth of businesses with…
Abstract
Due to the scope of procurement in the public sector, public procurement policy has the potential to shape the behavior of market actors and promote the growth of businesses with socially relevant characteristics. This chapter looks at the public procurement process in South Korea as well as the implementation of the country’s e-procurement system. Public procurement is vulnerable to corruption in various ways, and Korea’s KONEPS e-procurement system has reduced corruption in the procurement process by increasing transparency, the persistence of data, and the probability of detecting irregularities. Second, this chapter explores how Korea has increasingly incorporated sustainable procurement principles into procurement policy, attempting to foster innovative and environmentally friendly companies, as well as those led by individuals belonging to socially disadvantaged groups. The chapter concludes with a discussion of some of the historical and organizational factors underlying Korea’s successes in public procurement in order to better understand the extent to which currently developing countries can draw upon the Korean case to improve their own procurement policies.
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Brandsford Kwame Gidigah, Kofi Agyekum and Bernard K. Baiden
Though the Public Procurement Act of Ghana makes room for specific socio-economic policies (environmental, social, economic and other policies which are intended to promote social…
Abstract
Purpose
Though the Public Procurement Act of Ghana makes room for specific socio-economic policies (environmental, social, economic and other policies which are intended to promote social and economic impact), there is no explicit definition and provision for social value as an evaluation criterion, culminating in the absence of a definition in the Act. This paper elicits the conception and understanding of social value from stakeholders in the Ghanaian construction industry.
Design/methodology/approach
The study adopted a qualitative method that relied on a semi-structured interview of 30 participants purposively drawn from Western, Western North and Central regions of Ghana. An inductive thematic analysis approach, which involved identifying repetitions, exploring similarities and differences, noting linguistic connectors, and a framework were employed to analyse the data.
Findings
The study established no single definition or explanation for social value in the construction industry in Ghana. However, it was revealed from the study that the concept of social value could be defined from the functional perspective of the definer, particularly from the perspective of a Procurement Officer, Works Engineer, and a Quantity Surveyor. A new insight from the study that differs from the body of literature is that participants equated benefits derived from physically constructed projects as social value.
Social implications
The study has implication for public administration and practice regarding the decision-making process in the construction industry in Ghana. It provides a vital awakening on social value as a criterion in evaluating construction works procurement in Ghana. The ability of participants to equate the benefits derived from executed construction projects as social value creates a new perspective on understanding the meaning of social value in the procurement of works construction.
Originality/value
The study contributes to the state-of-the-art and ongoing discourse on the concept of social value globally. The findings create an important catalyst for social value research in the Ghanaian construction industry.
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Inger Johanne Pettersen, Kari Nyland and Geraldine Robbins
The purpose of this paper is to study the links between contextual changes, contract arrangements and resultant problems when changes in outsourcing regulatory requirements are…
Abstract
Purpose
The purpose of this paper is to study the links between contextual changes, contract arrangements and resultant problems when changes in outsourcing regulatory requirements are applied to complex pre-hospital services previously characterized by relational contracting.
Design/methodology/approach
The study deployed a qualitative design based on interviews with key informants and extensive studies of documents. It is a longitudinal study of a procurement process taking place in a regional health authority covering the period 2006 to 2017.
Findings
A complex and longitudinal public procurement process where pre-hospital (ambulance) services are transformed from relational and outsourced governance to more formal arrangements based on legal and transactional controls, is described in detail. After several years, the process collapsed due to challenges following public scrutiny, legal actions and administrative staff resignations. The public body lacked procurement competencies and the learning process following the regulations was lengthy. In the end, the services were in-sourced.
Research limitations/implications
This study is based on one case and it should, therefore, not be generalized without limitations.
Practical implications
One practical implication of this study is that transactional contracts are not optimal when core and complex services are produced in inter-organizational settings. In public sector health-care contexts, the role of informal and social controls based on relational exchanges are particularly applicable.
Social implications
Acute health-care services essential to citizens’ security and health imply high asset specificity, frequency and uncertainty. Such transactions should according to theory be produced in-house because of high agency costs in the procurement process.
Originality/value
The paper contributes to the understanding of how the public procurement process can itself be complex, as managerial challenges and solutions vary along several dimensions and are contingent upon external factors. In particular, the study increases knowledge of why the design and implementation of outsourcing models may create problems that impede and obstruct control in a particular public sector context.
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Joseph J. Schiele and Clifford P. McCue
Over the last several decades, lean thinking has been credited with several advancements in the practices of private sector organizations. Only recently have researchers begun to…
Abstract
Over the last several decades, lean thinking has been credited with several advancements in the practices of private sector organizations. Only recently have researchers begun to report on lean thinking as it applies to the public sector. For public procurement research, the concept remains largely unexamined. This research used the extant literature to identify preconditions that are required to successfully deploy lean thinking principles, tools, and techniques. Salient preconditions were organized into key categories. These categories provided the basis for a framework designed to assess public procurementʼs ability to adopt lean thinking, and aid in its implementation within this public sector environment. Questions suggested to guide future research, along with an approach intended to facilitate this work, are also presented.
Amit Agrahari and Samir K. Srivastava
Government e-Procurement systems are generating tender-level process event data which are not being analyzed much. The purpose of this paper is to present a data visualization…
Abstract
Purpose
Government e-Procurement systems are generating tender-level process event data which are not being analyzed much. The purpose of this paper is to present a data visualization tool to benchmark the government tendering process. This tool collects, collates and presents e-Procurement process data in a meaningful way that enables comparisons and benchmarking leading to insights for process improvements and identification of the best practices. This tool is accessible on the website of South Asia’s first public procurement observatory (www.procurementobservatoryup.com) founded by the authors.
Design/methodology/approach
The authors started with an initial set of key performance indicators (KPIs) based on extant literature and existing practices. The authors got them verified by various relevant stakeholders through a series of formal and informal discussions. Some of them were dropped due to observed variations or their inability to offer insights to arrive at the final set of KPIs. In this paper, the authors use actual process-level data. Government of India’s National Informatics Center has implemented e-Procurement portals in various states and public enterprises (PEs) in India which provide tender-wise detailed e-tendering process data. The authors designed a web crawler that collects these data in a tabular format, which allows an easy analysis and comparison to measure and compare government tendering process performance for the last five years for the two large PEs. The authors also engaged in discussions with the procurement executives of the two PSEs to derive meaningful managerial insights from the results obtained.
Findings
Using the public procurement data visualization tool, the authors compare the procurement process of two of the largest Indian PEs, Coal India Limited and Indian Oil Corporation on the developed KPIs and draw insights. The results show significant difference in their procurement process performance due to different practices followed by them. Through interaction with the procurement managers of these two organizations, the authors identify few good procurement practices that can be applied to improve public procurement process.
Research limitations/implications
This paper uses actual process-level data which can be used not just to identify improvement opportunities but also to gauge the impact of any process-level change. It presents a data visualization tool to generate insights from data generated by a procurement/tendering system. Such visualization and benchmarking can uncover better procurement practices and provide an impetus toward data-driven policy formulation. Apart from the two PEs as reported in this paper, this tool has also been applied on the public procurement data of eight Indian states.
Practical implications
The KPIs presented in this paper are aligned with the various dimensions of public procurement’s objectives. The visualization tool presented in this paper is based on the Open Contract Data Standard and has a universal application.
Social implications
The use of technology and open data sharing as the enablers of benchmarking and process improvements help in establishing a dynamic competitive environment leading to financial savings, better services to citizens and proper use of taxpayers’ money.
Originality/value
This paper presents an original work carried out under the aegis of South Asia’s first procurement observatory at IIM Lucknow. The benchmarking tool presented in this paper uses open contract data standard and can be applied in most of the public procurement processes. This paper takes the discussions on e-Procurement to the next level, where the concern is no longer restricted to only adoption and assimilation issues, but also on how to make use of the data that these e-Procurement systems generate.
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Jemima Antwiwaa Ottou, Bernard Kofi Baiden and Gabriel Nani
Project management tools and techniques have been widely adopted in the construction industry; however, its combination with Six Sigma and application in construction procurement…
Abstract
Purpose
Project management tools and techniques have been widely adopted in the construction industry; however, its combination with Six Sigma and application in construction procurement has not been widely researched. This paper explores the use of Six Sigma Project Procurement (SSPP) and its potential applications in public sector construction procurement.
Design/methodology/approach
The role of Six Sigma and project management in construction is critically evaluated using three case studies to demonstrate their application in public procurement.
Findings
The use of SSPP by public sector organisations creates efficient and effective construction procurement processes by addressing delays. The proposed timelines for competitive tendering in the Ghanaian Public Procurement Manual are not realistic.
Research limitations/implications
This paper contributes to and broadens the limited body of evidence and knowledge of applying SSPP to public procurement processes and identifies areas for further research.
Practical implications
Project management will continue to expand in the global construction industry. However, what will eventually determine if SSPP is embraced by public sector construction depends on the leadership and success of its execution. The application of SSPP to public construction procurement will address delays and lead to significant time reduction of the process. This will eliminate the major issue (delay) accounting for deficiencies in the process.
Originality/value
The paper yields immense value to construction project management researchers and practitioners, especially in the public sector. It recommends the inclusion of Six Sigma to promote focus on actual instead of perceived problems and advocates for decisions-making based on facts which will ensure continuous improvement.
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Georgios Koligiannis, Maria Drakaki and Panagiotis Tzionas
This paper aims to highlight how the Greek State tried to improve public procurement processes during the outbreak of the COVID-19 pandemic and propose measures that could be…
Abstract
Purpose
This paper aims to highlight how the Greek State tried to improve public procurement processes during the outbreak of the COVID-19 pandemic and propose measures that could be implemented in a future force majeure event where the global supply chain will not operate efficiently.
Design/methodology/approach
The authors investigated the existing scientific literature. Afterwards, they designed a questionnaire to gather primary data and add value to the current literature.
Findings
The research paper results highlight that in future force majeure events, the best way for effective public procurement is to implement central procurement, framework agreements with more than one economic operator and use the newly established Public Buyers Community in the European Union. The questionnaire interviews also highlighted that payment terms could be adjusted to the needs of the suppliers to improve their financial flows, which are disrupted in case of a force majeure event.
Research limitations/implications
One of the limitations of the present case study is that apart from the Greek procurement Laws and policy documents related to the COVID-19 pandemic, only scientific articles written in English were used by the authors in the literature review section.
Practical implications
The findings could benefit public contracting authorities and central procurement bodies when designing their processes in case of a force majeure event like the COVID-19 pandemic. As the public contracting authorities and the procurement officers are more informed about potential ways to improve the public procurement processes, they might apply measures that could facilitate the flexibility of the procurement processes.
Social implications
The research paper can provide lessons learned to policy makers, when they have to cope with similar challenges in the future.
Originality/value
To the best of the authors' knowledge, no previous scientific article has examined how the Greek State has tried to respond to the supply shortages created during the pandemic. Furthermore, this is the first study in Greece that gathers primary data from public procurement practitioners.
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The purpose of this paper is to investigate four dimensions of how to integrate quality in the public procurement process from three perspectives. The study was carried out in the…
Abstract
Purpose
The purpose of this paper is to investigate four dimensions of how to integrate quality in the public procurement process from three perspectives. The study was carried out in the public transportation industry where service provision has been outsourced.
Design/methodology/approach
An explorative case study was carried out using two data collection methods. The first involved a document study that considered the integration of quality in the public procurement process. This led to the second method, which involved conducting in‐depth interviews to follow up on the procurement and the role of quality with the participants.
Findings
The findings provide insights into how quality can be included in the public procurement process and, in particular, how self‐assessment can be used to evaluate the “best quality practice”. The quality maturity of the industry also has an influence on three dimensions: the choice of quality model, the weighting between price and quality and how the tenders perform their self‐assessments.
Research limitations/implications
The study focuses on one case and presents explorative findings. This has implications for future research, for which the set of procurement decisions regarding the integration of quality must be analysed.
Practical implications
The integration of quality in the public procurement process involves choosing a future business partner according to the “best quality practice”, not just the lowest price. Including quality in the public procurement process can help facilitate the delivery of high‐quality services to customers when service provision has been outsourced.
Originality/value
This study contributes to the service quality literature by empirically investigating how quality can be integrated in the public procurement process, which is a prerequisite for contracting a desired service supplier.
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Performance measurement has been receiving increased attention in public organizations. As performance measurement systems begin to take on a central focus by public sector…
Abstract
Performance measurement has been receiving increased attention in public organizations. As performance measurement systems begin to take on a central focus by public sector organizations, the challenges of measuring and improving critical organizational processes continue to increase in importance. Furthermore, as the procurement process continues to gain critical importance in public sector organizations, the need to apply specific performance measurement methods to measure and improve the procurement processes is essential for mission success. This article introduces the Contract Management Maturity Model (CMMM) as a method for assessing, measuring, and improving an organization’s procurement processes. The results of the case study describe the organizational benefits of using a contract management maturity model as a performance measurement, as well as a process improvement method.
Elina Karttunen, Aki Jääskeläinen, Iryna Malacina, Katrina Lintukangas, Anni-Kaisa Kähkönen and Frederik G.S. Vos
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Abstract
Purpose
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Design/methodology/approach
A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.
Findings
The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.
Social implications
Dynamic capabilities in public procurement are necessary to improve public procurement.
Originality/value
This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.
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