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Article
Publication date: 15 August 2016

Anthony Flynn and Paul Davis

The purpose of this paper is to test the relationship between firms’ experience of small- and medium-size enterprise (SME)-friendly policy and their participation and…

Abstract

Purpose

The purpose of this paper is to test the relationship between firms’ experience of small- and medium-size enterprise (SME)-friendly policy and their participation and success in public procurement.

Design/methodology/approach

Hypothesised relationships between SME-friendly policy and three outcome variables – frequency of tendering, success rate in public contract competitions, and commercial orientation towards the public sector – are tested using survey data from 2,755 SME respondents.

Findings

SME-friendly policy is found to be significant in explaining success rates and commercial orientation towards the public sector marketplace. It is not significant in explaining frequency of tendering.

Research limitations/implications

The context for the study is Ireland. However, given institutional similarities in national public procurement regimes, particularly among EU Member States, the findings have relevance beyond the Irish context. The research design is cross-sectional and so does not allow for any causal claims to be made.

Originality/value

This study puts forward and tests an original model of SME-friendly procurement policy and its associated outcomes for firms. It develops a comprehensive 16-item instrument to measure SME-friendly procurement policy. It uses SMEs as research informants instead of public buyers.

Details

Journal of Small Business and Enterprise Development, vol. 23 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

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Article
Publication date: 1 April 2017

Anthony Flynn and Paul Davis

This paper develops and tests a model for explaining small and medium-size enterprise (SME) participation and success in public procurement. The model is informed by a…

Abstract

This paper develops and tests a model for explaining small and medium-size enterprise (SME) participation and success in public procurement. The model is informed by a capability-based view of public sector tendering that includes relational and procedural dimensions. To test the model a survey was carried out on firms competing for contracts with Irish public sector organizations (n = 3010). The survey was repeated one year later to demonstrate reliability (n = 3092). Overall, the results lend support to the model. Procedural capability is associated with frequency of tendering and typical value of contract sought. Relational capability is not. Procedural and relational capabilities are each significant in accounting for success rates in contract competitions and commercial orientation towards the public sector.

Details

Journal of Public Procurement, vol. 17 no. 3
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 31 July 2017

Anthony Flynn

The purpose of this paper is to investigate the relationship between firm size, resources, capabilities and involvement in public procurement. While the liability of…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between firm size, resources, capabilities and involvement in public procurement. While the liability of smallness has been a recurring theme in research into public sector suppliers, there remains a dearth of evidence and theorising on the effects of size.

Design/methodology/approach

A model linking firm size, resources, capabilities, tendering activity and performance is devised. Resource-based view theory informs the model. Survey data from over 3,000 firms active in the Irish public sector marketplace is used to test the model.

Findings

As hypothesised, firm size is positively associated with tendering resources and capabilities. Resources and capabilities, in turn, influence tendering activity and performance. Specifically, resources act as enablers for the number and value of contracts firms tender for while capabilities are important for winning contracts. The author also finds similarities between medium and large enterprises in their ability to tender.

Research limitations/implications

The treatment of tendering resources and capabilities is not exhaustive. Future research could include additional indicators of resources (e.g. external consultants, IT) and capabilities (e.g. production, process innovation).

Practical implications

Managers of micro and small suppliers should focus on augmenting their tendering capabilities as they lag bigger suppliers. Legislators need to re-assess current “one-size-fits-all” small and medium enterprise (SME) friendly policy as it is not sensitive to intra-SME differences.

Originality/value

This study introduces an important qualification into understanding of public sector suppliers by demonstrating that SME disadvantage is less black and white than shades of grey.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 4
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 10 June 2021

Stephen Kelly, Donna Marshall, Helen Walker and John Israilidis

This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with…

Abstract

Purpose

This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with public sector procurement activities.

Design/methodology/approach

Qualitative data was collected from 20 interviews with a variety of suppliers to the UK public sector, which was then analysed using Nvivo and a series of empirically supported propositions developed.

Findings

The findings are combined into an integrated supplier satisfaction model, which explains how a multi-layered set of expectations (past and ideal) and quality dimensions (fairness, ambiguity, unnecessary information, tender focus, relationship irrelevance, unresponsiveness, outcome success) lead to dissatisfaction. This paper also establishes the implications of these judgments (non-response, poor quality and relationship impact) and that they are impacted by comparison to alternatives.

Practical implications

Supplier dissatisfaction can have serious ramifications for public sector buying organisations by reducing the pool of applicants, creating relationship barriers and a disconnect between the tender and the eventual services provided. This paper gives empirically derived advice to managers and policymakers on how to avoid these issues.

Social implications

Ensuring that as wide a pool of possible suppliers can respond to tender requests, means that the services that are provided by the public sector can make the most effective and efficient use of available resources. In addition, small to medium-sized enterprises may be encouraged to overcome their feelings of dissatisfaction and respond more frequently and readily to tender requests.

Originality/value

This paper contributes to the field of public sector procurement and in particular that which looks at increasing supplier satisfaction, by developing a supplier satisfaction model based on supplier generated data, which uses disconfirmation theory to explain the dynamics of how individuals make judgments by comparing perceptions of performance with a multi-layered set of expectations. This paper identifies service quality dimensions that influence satisfaction judgments and the implications of these judgments.

Details

Journal of Public Procurement, vol. 21 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

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Article
Publication date: 8 June 2020

Carmela Di Mauro, Alessandro Ancarani and Tara Hartley

This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and…

Abstract

Purpose

This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and supporting factors of MSMEs’ participation and success in public tenders.

Design/methodology/approach

The empirical analysis builds on a unique survey run by the Canadian federal government, which addressed firms either participating or not participating in public tenders. Model estimation on the survey data relies on sample selection methodologies, which allow separating determinants of MSMEs’ decision to participate from determinants of success.

Findings

Results provide evidence that costs stemming from asset specificity and uncertainty (e.g. costs of bidding, requirements for participation, bundling of contracts and award rules based on minimum price) affect participation in public procurement. Within MSMEs, micro-firms are the most discouraged from participating. However, after controlling for factors affecting participation, micro-firms emerge as having a higher success rate, possibly because of high specialization and joint participation with larger firms.

Research limitations/implications

Because of the cross-sectional nature of the data used for hypotheses testing, endogeneity may arise if ex post variables affect ex ante decisions. This may apply if participation in procurement feeds on success in past tenders.

Social implications

Findings may inform policies for the inclusion of smaller firms in the public marketplace.

Originality/value

To the best of the authors’ knowledge, this study is the first attempting to disentangle determinants of participation in public tenders from determinants of success. Separating the two aspects helps fine-tune SME-friendly public procurement policies, by identifying actions that effectively facilitate success of MSMEs in public tenders.

Details

Journal of Public Procurement, vol. 20 no. 4
Type: Research Article
ISSN: 1535-0118

Keywords

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Article
Publication date: 1 August 2019

Gabriella Marcarelli and Andrea Nappi

This paper aims to show how the proposed approach (two analytic hierarchy process [AHP] models) may allow dealing with the best tender selection process in an organic and…

Abstract

Purpose

This paper aims to show how the proposed approach (two analytic hierarchy process [AHP] models) may allow dealing with the best tender selection process in an organic and simple way and ensure the consistency check of the judgements, the necessary step for having reliable results. At first, this paper highlights some critical issues regarding the weighted sum model (WSM) and the algorithms frequently used to evaluate the most economic advantageous tender. Then, it proposes to extend the AHP approach to the evaluation of both the qualitative and quantitative components of a public procurement award. Finally, the WSM and the AHP are applied to the same case study to show, step by step, some criticisms of the former and some advantages of the latter.

Design/methodology/approach

This paper proposes to apply two AHP models to evaluate both qualitative and quantitative components of a public tender. The quality and cost models allow to identify and select the tender associated with the highest quality/cost ratio.

Findings

The assessment of the WSM and the AHP models, and some differences between them, build upon their application as an example of public procurement. A case study is used as a teaching device (Yin, 2003) to highlight why the AHP may provide different results. In particular, an important issue concerning the evaluation of qualitative requirements is explored: the consistency of judgements expressed by the committee members.

Social implications

This approach provides analytical tools for public management that allow appropriate implementation of their management function and allow a realisation of the strategic objectives of European Union law and Italian legislation on public procurement. It would help managers to prioritise their goals and criteria and evaluate them in a scientific way. The model integrates multiple qualitative and quantitative criteria, simplifies the selection process, achieves optimal use of funds and leads to cost savings. It allows to reduce the discretional power of both the contracting issuer, in the choice of the formula to adopt for calculating the coefficients, and the committee members, allowing tender evaluation to have more trust and ensure the fairness of public procurement matters and quality of the object purchased.

Originality/value

This paper proposes the use of two hierarchical models to evaluate qualitative and quantitative requirements and provide the ranking among several tenders.

Details

Journal of Public Procurement, vol. 19 no. 3
Type: Research Article
ISSN: 1535-0118

Keywords

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Article
Publication date: 17 August 2012

Åsa Rönnbäck

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…

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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Article
Publication date: 26 September 2019

Bello Abdullahi, Yahaya Makarfi Ibrahim, Ahmed Ibrahim and Kabir Bala

The revolution brought about by the internet and the World Wide Web has led to the development of numerous e-Tendering systems for public sector tendering that have…

Abstract

Purpose

The revolution brought about by the internet and the World Wide Web has led to the development of numerous e-Tendering systems for public sector tendering that have automated various aspects of the manual tendering processes that are known to experience numerous problems. However, one key area that has not been fully addressed is the automation of the evaluation of public tenders based on group decision-making. This paper presents part of the development of a Web-based e-tendering system called Nigerian Public Sector eTender (NPS-eTender) that automate the evaluation of public sector tenders based on group decision-making.

Design/methodology/approach

The system was developed using object-oriented methodologies. Specifically, Ripple and unified process methodologies were adopted.

Findings

The results of the system validation showed that NPS-eTender has an average rating of 74% with respect to correct and accurate modelling of the existing tendering domain and an average rating of 67.6% with respect to its potential to enhance the proficiency of public sector tendering in Nigeria. Based on the results of the validation, it can be concluded that the automation of the tender evaluation process can lead to a more proficient tendering process.

Originality/value

This research has contributed to the development of an e-Tendering system for the public sector that supports the whole tendering lifecycle including the automation of evaluation of public tenders based on group decision-making.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 1
Type: Research Article
ISSN: 1726-0531

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Article
Publication date: 1 March 2006

Sakire Kural and Umit Alsac

Turkey transformed the public procurement procedures in year 2002 by two laws; Public Procurement Law and Public Procurement Contracts Law. This situation brought about…

Abstract

Turkey transformed the public procurement procedures in year 2002 by two laws; Public Procurement Law and Public Procurement Contracts Law. This situation brought about challenges for the stakeholders from both the public sector and private sector. This paper presents an analysis of the new public procurement procedures to understand the path from the determination of the need to the signing of the contract as well as several special provisions for consultancy services, complaint reviews and statistics of the last two years.

Details

Journal of Public Procurement, vol. 6 no. 1/2
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 1 March 2016

Anne Rainville

To induce innovation in the public sector, Directive 2014/24/EU encourages internal and external consultation during the procurement process. However, little is known…

Abstract

To induce innovation in the public sector, Directive 2014/24/EU encourages internal and external consultation during the procurement process. However, little is known regarding the prominence of these practices. Determining the extent of knowledge sourcing in innovation procurement across 28 European countries, this paper presents an institutional cluster analysis, examining heterogeneity across knowledge sourcing activities, procurement areas, and tender innovation outcomes for 1,505 public procurers from 2008-2010. Building upon existing taxonomies, three types of procuring agencies are identified: Large collaborative agencies practicing public procurement of innovation (31%); supplier-focused pre-commercial procurers (20%); and direct procurers at the municipal level (49%). Validation supports this heterogeneity, using innovation outcomes and policy drivers. At the country level, Spain, the United Kingdom, Italy, Germany and Poland are most represented in respective clusters. Findings enable predictions regarding impacts on agencies and innovation from the new public procurement directive's translation into national law by Member States.

Details

Journal of Public Procurement, vol. 16 no. 4
Type: Research Article
ISSN: 1535-0118

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