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1 – 10 of 450Khaled Hesham Hyari and Mujahed Thneibat
Skewed pricing is a typical tactic used by tenderers in unit price projects to gain additional advantages at the expense of the owner or other competing tenderers. This paper aims…
Abstract
Purpose
Skewed pricing is a typical tactic used by tenderers in unit price projects to gain additional advantages at the expense of the owner or other competing tenderers. This paper aims to describe the development of a model for detecting skewed pricing in competitive tendering for unit price contracts.
Design/methodology/approach
The model evaluates how much the offered unit rates for work items deviate from the reasonable rate identified from the item’s submitted unit rates. Item rate deviations are integrated into a total deviation score for each submitted tender based on the relative weight of the work item to the total project amount. The model allows for assigning higher weights to work items that are more prone to skewed pricing, such as those that are performed early and those that are expected to experience quantity fluctuations.
Findings
The paper presents a detection model that uses only the submitted prices of the competing tenderers to perform the needed calculations, which reduces subjectivity in identifying skewed tenders. Two examples are given to demonstrate how the model may be used to detect skewed tenders.
Originality/value
The model supports tendering officials in the challenging task of identifying skewed tenders, which is required by rules and regulations governing public procurement. The model’s ease of use is expected to make it more widely used as a decision-support tool during the tender evaluation stage of real-world projects.
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Cong Wang, Henry Liu, Michael C.P. Sing and Jin Wu
Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction…
Abstract
Purpose
Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction. However, Private Public Partnerships (PPPs) have been subjected to a long pre-construction, thereby leading to an inefficient development process. Therefore, the purpose of this paper is to pay attention to the influencing factors elongating the pre-construction duration.
Design/methodology/approach
Based on data of 5,677 PPP projects between 2009 and 2021 in China, the authors adopt the Accelerated Failure Time (AFT) model in duration analysis to empirically analyze the following underlying dynamics determining the duration of PPP pre-construction stages: (1) policy uncertainty; (2) corruption; and (3) procurement method selection. To observe the influencing paths more specifically, the authors divided the pre-construction duration into the pre-tendering period and tendering period and regressed them separately.
Findings
The results indicate that the pre-construction duration is significantly prolonged with increased policy uncertainty and corruption degree as well as the use of tendering methods. Meanwhile, the above factors have a greater impact on the pre-tendering period than the tendering period.
Originality/value
The contribution of this study is twofold: (1) theoretically, this paper provides new evidence on the impact of PPP policy uncertainty, corruption and procurement method selection on the pre-construction duration. It complements empirical studies on the factors elongating the time efficiency of PPPs projects. (2) In practice, it provides a specific path for the government to improve the time efficiency of PPPs.
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Jacopo Ballerini, Daniele Giordino, Luboš Smrčka and Francesca Culasso
Food and beverage (F&B) small and medium-sized enterprises (SMEs) must diversify their markets and obtain predictable sources of revenues to withstand difficult and volatile…
Abstract
Purpose
Food and beverage (F&B) small and medium-sized enterprises (SMEs) must diversify their markets and obtain predictable sources of revenues to withstand difficult and volatile periods such as the post-pandemic geopolitical scenario, recently burdened by the Russian-Ukrainian conflict. On the other hand, another strand of the literature suggests that public procurement could be considered a great source of income, enabling solid contracts, revenues and cash-flow stability. Therefore, this paper aims to explore the role of public procurement, the adoption of e-commerce platforms and their interactions in affecting the exporting performances of SMEs operating in the F&B sector.
Design/methodology/approach
The study retrieves data from 2,186 Italian F&B manufacturing SMEs relying on Margò by Cribis database. Therefore, it conducts a structured equational model (SEM) to test the developed hypotheses empirically.
Findings
The findings reveal that digital selling platforms positively affect exports, whereas public procurement negatively affects F&B SMEs exports. Nonetheless, findings underline that the interaction between public procurement and the adoption of digital selling platforms dampens public procurement's negative effects on exports.
Originality/value
This study brings an original contribution to the F&B literature by conducting empirical research on an extensive sample of firms from one of the most influential countries in the F&B vertical, Italy, with officially registered data. More importantly, to the best of the authors' knowledge, this study pioneers the investigation of the relationship between public procurement and e-commerce platforms in affecting F&B SMEs' export performances.
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Nur Faiza Ishak and Vinesh Thiruchelvam
The purpose of this study is to discuss policy review in the interest of sustainable innovations in Malaysia’s public procurement. This study also offers the overall relationship…
Abstract
Purpose
The purpose of this study is to discuss policy review in the interest of sustainable innovations in Malaysia’s public procurement. This study also offers the overall relationship between existing policies related to sustainable innovations in public procurement and the coherences towards the four dimensions of sustainable innovations.
Design/methodology/approach
This study outlines the current policies in Malaysia which are related to sustainable innovation initiatives and explores the cohesiveness that appears disconnected and understood separately. Policy content analysis is conducted on the current policies related to sustainable innovations in the context of Malaysia’s public procurement.
Findings
This study observed that the current policies related to sustainable innovations in public procurement are actually interconnected with each other through a hierarchical framework. This study also demonstrates that the 12th Malaysia Plan has comprehensively encompassed every aspect of the environment, social, economic and innovation to contribute to one primary goal – green economic growth.
Research limitations/implications
The proposed policy framework is expected to be beneficial for the administrator executive among the civil servant to connect the independent policies and, at the same time, contribute to the overall goal of green economic growth. Through a broad policy structure too, this study helps the industry player to recognize their potential in any area related to sustainable innovation.
Originality/value
The policy framework illustrated is new to the literature, especially in Malaysia’s context. The compilation of current policy grounded by the 12th Malaysia Plan has not been presented in any publications.
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Sophie Hunt, Dag Håkon Haneberg and Luitzen de Boer
This paper aims to make sense of the social enterprise in a frame of social procurement and conceptualise it as a provider of public welfare based on bibliometric material…
Abstract
Purpose
This paper aims to make sense of the social enterprise in a frame of social procurement and conceptualise it as a provider of public welfare based on bibliometric material. Comprehensively, it contributes to developments in social procurement, which has received limited attention.
Design/methodology/approach
Scoping literature from Web of Science and using bibliometric methods, the paper identifies and qualitatively explores the literary intersections between social enterprise and social procurement.
Findings
Of the 183 articles, four literary clusters are revealed illustrating scholarly intersections and a detailed exploration of social enterprise as a public provider. The alignment and themes of the clusters further indicate the application of, and role played by, social enterprise in social procurement. Collectively, they reveal the dominance of social enterprise in this dyadic relationship and a minor undertaking of research in social procurement.
Social implications
This “sense-making” groundwork forms a foundational step in developing our understanding of procurements through social enterprises. Furthermore, a positioning and conceptualisation of social enterprise accredits their utility and applicability in delivering public benefits. In this way, the paper informs and supports scholarly and practice-based interest into social enterprises for the delivery of public services.
Originality/value
The paper presents the first bibliometric conceptualisation of social enterprise in relation to social procurement and offers detailed insights through the bibliometric clusters. Furthermore, the paper contributes to the underdeveloped social dimension of procurement and bridges the gap between two distinct fields of scholarship: public management and administration and social entrepreneurship.
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Susanna Pinnock, Natasha Evers and Thomas Hoholm
The demand for healthcare innovation is increasing, and not much is known about how entrepreneurial firms search for and sell to customers in the highly regulated and complex…
Abstract
Purpose
The demand for healthcare innovation is increasing, and not much is known about how entrepreneurial firms search for and sell to customers in the highly regulated and complex healthcare market. Drawing on effectuation perspectives, we explore how entrepreneurial digital healthcare firms with disruptive innovations search for early customers in the healthcare sector.
Design/methodology/approach
This study uses a qualitative, longitudinal multiple-case design of four entrepreneurial Nordic telehealth firms. In-depth interviews were conducted with founders and senior managers over a period of 27 months.
Findings
We find that when customer buying conditions are highly flexible, case firms use effectual logic to generate customer demand for disruptive innovations. However, under constrained buying conditions firms adopt a more causal approach to customer search.
Practical implications
Managers need to gain a deep understanding of target buying environments when searching for customers. In healthcare sector markets, the degree of flexibility customers have over buying can constrain them from engaging in demand co-creation. In particular, healthcare customer access to funding streams can be a key determinant of customer flexibility.
Originality/value
We contribute to effectuation literature by illustrating how customer buying conditions influence decision-making logics of entrepreneurial firms searching for customers in the healthcare sector. We contribute to entrepreneurial resource search literature by illustrating how entrepreneurial firms search for customers beyond their networks in the institutionally complex healthcare sector.
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Udara Willhelm Abeydeera Lebunu Hewage, Jayantha Wadu Mesthrige and Eric G. Too
This study explores the current status of risk management (RM) in Sri Lanka and the obstacles in implementing RM in Sri Lankan small construction projects.
Abstract
Purpose
This study explores the current status of risk management (RM) in Sri Lanka and the obstacles in implementing RM in Sri Lankan small construction projects.
Design/methodology/approach
The current research study adopted a quantitative research method. Using a purposeful sampling strategy, 100 construction companies engaged in small construction projects in Sri Lanka were selected and a questionnaire was distributed among top managerial employees of these companies. Employees belonging to 47 companies responded to the survey which provided information relating to 812 construction projects. The collected data were analyzed using the RM implementation index (RMII) and other quantitative measures such as mean, median and percentages.
Findings
The research findings indicated that RM incorporation was at a lower degree in small construction projects in Sri Lanka. The findings further indicated that RM incorporation was relatively high in the public construction projects compared to the private construction projects. The main obstacles identified through the survey for RM implementation were: “lack of funding”, “lack of time”, “low profit margin”, “not economical” and “lack of knowledge”.
Research limitations/implications
The study was limited to exploring RM implementation in small construction projects in Sri Lanka. The study was limited to the building construction companies under the 150-million-rupee (approx. below 450,000 USD) financial limit registered with the construction industry development authority in Sri Lanka.
Originality/value
RM in small construction projects in developing countries is a relatively less explored domain. Sri Lankan construction industry is another relatively less explored domain in terms of new management technique implementation such as RM and value management. The quantitative approach used for the study revealed that RM implementation is at a lower degree in the small construction projects. Moreover, several obstacles pertaining to RM implementation were recognized through this study. These findings will be useful for the construction stakeholders to overcome the recognized barriers and effectively use RM in their respective construction projects.
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Anna-Therése Järvenpää, Johan Larsson and Per Erik Eriksson
This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.
Abstract
Purpose
This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.
Design/methodology/approach
Semi-structured interviews about six infrastructure projects were conducted to identify respondents’ views on innovation possibilities. These possibilities were then analyzed from an organizational control perspective within principal–agent relationships between the Swedish Transport Administration (STA) and their contractors.
Findings
How the client uses control systems affects innovation possibilities. Relying on process control could negatively affect innovation opportunities, whereas output control could have a positive influence. In addition, social control seems to have a weak effect, as the STA appears not to use social control to facilitate joint innovation. Public clients must comply with the Public Procurement Act and, therefore, retain the requirements specified in the tendering documents. Much of the steering of the execution is connected to the ex ante phase (before signing the contract), which affects innovation possibilities in the design and execution phases for the contractor.
Research limitations/implications
This study was conducted with only one client, thus limiting its generalizability. However, the findings provide an important stepping stone to further investigation into balancing control systems and creating innovation possibilities in a principal–agent relationship.
Originality/value
Although public procurement has increasingly been emphasized as a major potential source of innovation, studying how a public client’s use of organizational control systems affects innovation possibilities in the construction sector has received scant attention.
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Christopher Amoah and Demetri Steyn
Complying with the code of conduct by professionals in the construction industry worldwide has become a significant issue over the years. This has led to projects' failure…
Abstract
Purpose
Complying with the code of conduct by professionals in the construction industry worldwide has become a significant issue over the years. This has led to projects' failure, leading to losses to both the client and contractors. The study's objective is to identify the challenges of construction professionals in complying with their code of conduct and preventing corrupt practices.
Design/methodology/approach
Quantitative approach was used to collect empirical data by sending questionnaires to 56 construction professionals in South Africa. Data gathered were analysed through Excel statistical tool. Mean values were calculated for the quantitative data, whilst thematic content analyses were used to generate frequencies and percentages for qualitative data.
Findings
The findings indicate that construction professionals experience many unethical issues in their work duties such as inflated tender prices, overpricing the rates, tender-based kickbacks, bribes for projects, unethical methods of project execution, use of lower grade materials than specified, discrimination, among others. However, issues such as greediness, acceptance of corruption as usual practice, lack of knowledge about the code of conduct, the only way to get contracts, part of the process, and peer pressure create a challenge in complying with the code of conduct and preventing corrupt practices among construction professionals.
Practical implications
Construction professionals face many unethical and corrupt practices in their project management and execution, which they cannot overcome due to many factors. Therefore, there is the need to sensitise the professionals in the construction industry regarding their code of conduct as well as the danger associated with engaging in corrupt practices in their work and their implication on project performance.
Originality/value
The findings give an insight into the critical factors curtailing the construction professional's ability to comply with their code of conduct and be corrupt-free in their line of duty. Thus, professional associations can use the findings in guiding their members.
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Luís Jacques de Sousa, João Poças Martins and Luís Sanhudo
Factors like bid price, submission time, and number of bidders influence the procurement process in public projects. These factors and the award criteria may impact the project’s…
Abstract
Purpose
Factors like bid price, submission time, and number of bidders influence the procurement process in public projects. These factors and the award criteria may impact the project’s financial compliance. Predicting budget compliance in construction projects has been traditionally challenging, but Machine Learning (ML) techniques have revolutionised estimations.
Design/methodology/approach
In this study, Portuguese Public Procurement Data (PPPData) was utilised as the model’s input. Notably, this dataset exhibited a substantial imbalance in the target feature. To address this issue, the study evaluated three distinct data balancing techniques: oversampling, undersampling, and the SMOTE method. Next, a comprehensive feature selection process was conducted, leading to the testing of five different algorithms for forecasting budget compliance. Finally, a secondary test was conducted, refining the features to include only those elements that procurement technicians can modify while also considering the two most accurate predictors identified in the previous test.
Findings
The findings indicate that employing the SMOTE method on the scraped data can achieve a balanced dataset. Furthermore, the results demonstrate that the Adam ANN algorithm outperformed others, boasting a precision rate of 68.1%.
Practical implications
The model can aid procurement technicians during the tendering phase by using historical data and analogous projects to predict performance.
Social implications
Although the study reveals that ML algorithms cannot accurately predict budget compliance using procurement data, they can still provide project owners with insights into the most suitable criteria, aiding decision-making. Further research should assess the model’s impact and capacity within the procurement workflow.
Originality/value
Previous research predominantly focused on forecasting budgets by leveraging data from the private construction execution phase. While some investigations incorporated procurement data, this study distinguishes itself by using an imbalanced dataset and anticipating compliance rather than predicting budgetary figures. The model predicts budget compliance by analysing qualitative and quantitative characteristics of public project contracts. The research paper explores various model architectures and data treatment techniques to develop a model to assist the Client in tender definition.
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