Asymmetric Information: A Case Study in Potential Public Procurement Pitfalls

2016 ◽  
pp. 249-267
Author(s):  
Sirilaksana Khoman
Keyword(s):  
Asymmetric Information ◽  
Public Procurement

scholarly journals The Budget as a Basis for Ecological Management of Urbanization Projects. Case Study in Seville, Spain

2021 ◽  
Vol 13 (7) ◽  
pp. 4078
Author(s):  
María Rocío Ruiz-Pérez ◽  
María Desirée Alba-Rodríguez ◽  
Cristina Rivero-Camacho ◽  
Jaime Solís-Guzmán ◽  
Madelyn Marrero
Keyword(s):  
Public Procurement ◽  
Embodied Energy ◽  
Short Term ◽  
Sewer System ◽  
Communication Services ◽  
Concrete Aggregates ◽  
The Public ◽  
Basic Services ◽  
Total Impact

Urbanization projects, understood as those supplying basic services for cities, such as drinking water, sewers, communication services, power, and lighting, are normally short-term extremely scattered actions, and it can be difficult to track their environmental impact. The present article’s main contribution is to employ the project budgets of public urbanization work to provide an instrument for environmental improvement, thereby helping public procurement, including sustainability criteria. Two urban projects in Seville, Spain are studied: the first substitutes existing services, and the second also includes gardens and playgrounds in the street margins. The methodology finds the construction elements that must be controlled in each project from the perspective of three indicators: carbon, water footprints, and embodied energy. The main impacts found are due to only four construction units: concrete, aggregates, asphalt, and ceramic pipes for the sewer system, that represent 70% or more of the total impact in all indicators studied. The public developer can focus procurement on those few elements in order to exert a lower impact and to significantly reduce the environmental burden of urbanization projects.

scholarly journals A Method for Assessing Threats to the Economic Security of a Region: A Case Study of Public Procurement in Russia

Risks ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 10
Author(s):  
Valentina Kravchenko ◽  
Tatiana Kudryavtseva ◽  
Yuriy Kuporov
Keyword(s):  
Regression Models ◽  
Public Procurement ◽  
Ordinary Least Squares ◽  
Economic Security ◽  
Government Procurement ◽  
Security Monitoring ◽  
Significant Relationships ◽  
Monitoring Tools ◽  
Russian Region

The issue of economic security is becoming an increasingly urgent one. The purpose of this article is to develop a method for assessing threats to the economic security of the Russian region. This method is based on step-by-step actions: first of all, choosing an element of the region’s economic security system and collecting its descriptive indicators; then grouping indicators by admittance-process-result categories and building hypotheses about their influence; testing hypotheses using a statistical package and choosing the most significant connections, which can pose a threat to the economic security of the region; thereafter ranking regions by the level of threats and developing further recommendations. The importance of this method is that with the help of grouping regions (territory of a country) based on proposed method, it is possible to develop individual economic security monitoring tools. As a result, the efficiency of that country’s region can be higher. In this work, the proposed method was tested in the framework of public procurement in Russia. A total of 14 indicators of procurement activity were collected for each region of the Russian Federation for the period from 2014 to 2018. Regression models were built on the basis of the grouped indicators. Ordinary Least Squares (OLS) Estimation was used. As a result of pairwise regression models analysis, we have defined four significant relationships between public procurement indicators. There are positive connections between contracts that require collateral and the percentage of tolerances, between the number of bidders and the number of regular suppliers, between the number of bidders and the average price drop, and between the number of purchases made from a single supplier and the number of contracts concluded without reduction. It was determined that the greatest risks for the system were associated with the connection between competition and budget savings. It was proposed to rank analyzed regions into four groups: ineffective government procurement, effective government procurement, and government procurement that threatens the system of economic security of the region, that is, high competition with low savings and low competition with high savings. Based on these groups, individual economic security monitoring tools can be developed for each region.

scholarly journals Do entrepreneurial knowledge and innovative attitude overcome “imperfections” in the innovation process? Insights from SMEs in the UK and Italy

2018 ◽  
Vol 22 (8) ◽  
pp. 1637-1654 ◽  
Author(s):  
Antonio Usai ◽  
Veronica Scuotto ◽  
Alan Murray ◽  
Fabio Fiano ◽  
Luca Dezi
Keyword(s):  
Risk Management ◽  
Knowledge Management ◽  
Asymmetric Information ◽  
Innovation Process ◽  
Comparative Case Study ◽  
Management Process ◽  
Content Type ◽  
Entrepreneurial Knowledge ◽  
The Uk

PurposeEntrepreneurial knowledge spurs innovation and, in turn, generates a competitive advantage. This paper aims to explore if entrepreneurial knowledge combined with the attitude to innovate can overcome the key “imperfections” of the innovation process generated by dynamic, current technological progress in the knowledge-intensive sector. The “imperfections” identified in risk management, asymmetric information in the knowledge management process and hold-up problems can all disrupt collaborative partnerships and limit opportunities for innovation.Design/methodology/approachA theory-building approach is applied which offers a case study analysis of two small- to medium-sized enterprises (SMEs). These two SMEs operate in Europe but in two different territories: the UK and Italy. The study explores three key imperfections, risk management, asymmetric information in the knowledge management process and hold-up problems, which occur in the innovation process.FindingsThe entrepreneurs face these imperfections by adopting an open innovation model. Notwithstanding, both entrepreneurs had to deal with all “imperfections”, and their skills, attributes, attitude and aptitude allowed them to grow their business and continually develop new products. Therefore, the imperfections do not limit the innovative capacity of an entrepreneur but rather enhance their challengeable attitude. In this regard, the case studies induce a further analysis on entrepreneurial knowledge intertwined with entrepreneurial risk management and networking skills.Research limitations/implicationsThe empirical significance of the two cases does not allow theorisation. However, this research offers interesting results which can be strengthened by a comparative case study with other countries or deeper investigation by applying a quantitative approach.Originality/valueBy leveraging entrepreneurial knowledge, the imperfections noted in the innovation process can be overcome. Entrepreneurial knowledge is recognised as the main asset of an enterprise if it is combined with external talent or human resources. Entrepreneurs aim to develop innovative approaches and ideas through establishing both formal and informal collaborative partnership relationships which are used thanks to the entrepreneurs’ networking skills, knowledge and abilities.

Systemic corruption and public procurement in developing countries: are there any solutions?

2018 ◽  
Vol 18 (2) ◽  
pp. 131-147 ◽  
Author(s):  
Sope Williams-Elegbe
Keyword(s):  
Quality Of Life ◽  
Developing Countries ◽  
Design Methodology ◽  
Public Procurement ◽  
Content Type ◽  
Asymmetry Of Information ◽  
Culture Of Silence ◽  
Systemic Corruption

Purpose Corruption affects development and quality of life of citizens in affected countries. The increase in anti-corruption measures globally reflects a consensus that corruption is pervasive and costly. Public procurement is one area in which corruption manifests because of the sums of money involved; the asymmetry of information; and the bureaucratic nature of decision-making, which presents opportunities for abuse. In developing countries, procurement corruption is rife because of institutional weaknesses, lack of enforced accountability mechanisms and culture of silence in relation to public sector malfeasance. Design/methodology/approach This paper examines procurement corruption in countries with systemic corruption, using Nigeria as a case study, to determine how to reduce public procurement corruption. Findings The paper will highlight prevalent corrupt schemes in public procurement in Nigeria, examine the reasons for the failure of state anti-corruption institutions and analyze the kinds of initiatives that reduced procurement corruption and increased accountability in other countries and the utility of adopting such mechanisms in the Nigerian context.

Combatting corruption and collusion in public procurement: lessons from operation car wash

2021 ◽  
pp. e20210023
Author(s):  
Alison Jones ◽  
Caio Mário da Silva Pereira Neto
Keyword(s):  
Law Enforcement ◽  
Public Procurement ◽  
Big Bang ◽  
Policy Debate ◽  
Reform Strategy ◽  
Car Wash ◽  
Systemic Corruption ◽  
Brazilian Case ◽  
Competition Enforcement

This article examines the question of how a nation can combat corruption and collusion and prevent these practices from plaguing and undermining public procurement processes. This matter is especially important to Brazil where Operation Car Wash exposed widespread corruption and collusion affecting public procurement. Although focusing on Brazil, this article reflects on a broader academic and policy debate as to how a nation can escape from a ‘high-corruption’ equilibrium, especially one strengthened by its interaction with supplier collusion. In particular, whether endemic corruption can be combatted through an invigorated law enforcement push, combined with incremental reform, or whether some ‘big bang’ approach, with complete institutional overhaul, is required to establish a new equilibrium. The article notes that the Brazilian experience provides support for the hypothesis that, where corruption is endemic, better laws and law enforcement may be insufficient on their own to break a cycle and to remove the incentives and opportunities for corruption and collusion that exist. However, it also recognizes that, for many jurisdictions, wholesale big bang reform is unlikely to be feasible. It thus proposes a multi-pronged, and self-reinforcing, set of reforms to trigger change, concentrated on weaknesses diagnosed in the system. In particular, it suggests that where corruption affects public procurement, beyond specific adjustments to procurement, competition and anti-corruption laws, procurers, anti-corruption and competition enforcement agencies need to work closely together to coordinate policies, achieve synergies and to combat incentives and opportunities for corruption and collusion within procurement processes. Such reforms must be combined with measures to tackle broader factors contributing to systemic corruption. Although inspired by the Brazilian case study, the diagnosis and proposed reform strategy provides a workable model for use in other jurisdictions.

Public Procurement in the Czech Republic

2012 ◽  
pp. 210-226 ◽  
Author(s):  
Jirí Novosák ◽  
Oldrich Hájek ◽  
Jirí Machu
Keyword(s):  
Sustainable Development ◽  
Czech Republic ◽  
Regional Development ◽  
Small And Medium Enterprises ◽  
Public Procurement ◽  
Regional Disparities ◽  
The Czech Republic ◽  
Dominant Position ◽  
Medium Enterprises

Relations between public procurement, regional development, and e-procurement are discussed in this chapter. First, main themes of the debate are reviewed. Subsequently, some relations between public procurement, regional development, and e-procurement are discussed. The Czech Republic is used as a case study in this regard. The authors’ findings confirm the potential of public procurement to stimulate development of Czech regions. Spatially, public procurement may not be regarded as a suitable tool for reduction of regional disparities. However, there seems to be an important impact of public procurement on the development of local small and medium enterprises. In addition, the authors’ findings point at some links between public procurement and the concepts of sustainable development and competitiveness. Nevertheless, the dominant position of price as evaluation criterion indicates that the linkages are rather weak. Finally, the increasing interest of the Czech Republic in e-procurement was documented.

scholarly journals Bidders Recommender for Public Procurement Auctions Using Machine Learning: Data Analysis, Algorithm, and Case Study with Tenders from Spain

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-20
Author(s):  
Manuel J. García Rodríguez ◽  
Vicente Rodríguez Montequín ◽  
Francisco Ortega Fernández ◽  
Joaquín M. Villanueva Balsera
Keyword(s):  
Machine Learning ◽  
Public Procurement ◽  
Public Information ◽  
Random Forest Classifier ◽  
Procurement Auctions ◽  
Machine Learning Method ◽  
Test Conditions ◽  
A Company ◽  
Learning Data

Recommending the identity of bidders in public procurement auctions (tenders) has a significant impact in many areas of public procurement, but it has not yet been studied in depth. A bidders recommender would be a very beneficial tool because a supplier (company) can search appropriate tenders and, vice versa, a public procurement agency can discover automatically unknown companies which are suitable for its tender. This paper develops a pioneering algorithm to recommend potential bidders using a machine learning method, particularly a random forest classifier. The bidders recommender is described theoretically, so it can be implemented or adapted to any particular situation. It has been successfully validated with a case study: an actual Spanish tender dataset (free public information) which has 102,087 tenders from 2014 to 2020 and a company dataset (nonfree public information) which has 1,353,213 Spanish companies. Quantitative, graphical, and statistical descriptions of both datasets are presented. The results of the case study were satisfactory: the winning bidding company is within the recommended companies group, from 24% to 38% of the tenders, according to different test conditions and scenarios.

Estimation of procurement costs incurred by public customers: a case study of a Russian region

2018 ◽  
Vol 18 (1) ◽  
pp. 68-87
Author(s):  
Andrei Yakovlev ◽  
Olga Balaeva ◽  
Andrey Tkachenko
Keyword(s):  
Public Procurement ◽  
Methodological Approach ◽  
Policy Implications ◽  
Cost Evaluation ◽  
Content Type ◽  
Russian Region ◽  
Procurement Cost ◽  
Procurement System ◽  
The Cost

Purpose This paper aims to measure the cost of procurement because public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers. Design/methodology/approach These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation. Findings This paper shows how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation. Originality/value The authors formulate the policy implications of this paper, as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.

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