Public procurement capabilities as engines for collaboration and enhanced performance in complex projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juliana Bonomi Santos ◽  
Sandro Cabral
Keyword(s):  
Public Procurement ◽  
Armed Forces ◽  
Public And Private ◽  
Supplier Relationships ◽  
Content Type ◽  
Accountability Standards ◽  
Policy Debates ◽  
Policy Goals ◽  
Complex Projects ◽  
Contracting Process

PurposeThis paper explores how public buyers' capabilities promote collaboration with private suppliers to obtain enhanced performance in complex projects.Design/methodology/approachThe authors conducted two case studies on the procurement of complex military projects by the Brazilian armed forces involving public buyers and private suppliers. The authors followed the Gioia methodology to inductively analyze data from interviews, official documents, media articles and project meeting notes.FindingsThe authors identified public procurement capabilities that are antecedents of collaborative trust-based relationships with suppliers in complex public-private projects. The authors unpack these capabilities in three subsets: abilities to manage the bidding and contracting process, to handle relationships with prominent stakeholders, such as audit control bodies and to manage knowledge acquired within and across current and past projects. By developing these capabilities, public buyers can build collaborative trust-based relationships with suppliers, which enable the conciliation of operational performance (i.e. on-time delivery, budget and scope compliance) and policy goals (i.e. inclusion of local suppliers in supply chains).Originality/valueThe authors extend the literature on the enablers of trust and collaboration in buyer-supplier relationships by providing a detailed account of which capabilities are necessary on the buyer side in complex projects, especially when accountability standards create barriers for collaborative practices. The authors also reinforce the importance of the operations and supply chain management scholarship in policy debates by showing how buyer-supplier interactions can create value in complex projects with public and private sectors.

scholarly journals Public private partnership as a last resort for traditional public procurement

2006 ◽  
Vol 53 (3) ◽  
pp. 299-311 ◽  
Author(s):  
Viktorija Bojovic
Keyword(s):  
Public Sector ◽  
Public Services ◽  
Developing Economies ◽  
Public Procurement ◽  
Public Private Partnership ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Management Culture ◽  
Complex Projects

This paper discusses recent changes in the way public services are delivered A marked increase in the cooperation between the public and private sector in the realization of complex projects, mostly concerning development of infrastructure, is the main characteristic of present-day developing economies. The creation of new, innovative agreements is driven by the limitation of public funds and an ever-growing demand for an increase in the quality of public services. Looking upon the western economies experience alternatives to the traditional public sector procurement are identified in the public/private partnership. The public/private partnership can be seen as one component in the rearrangement of the public sector with a management culture that focuses on the citizen or customer. Also included in this are accountability for results, investigation of a wide variety of alternative service delivery mechanisms, and competition between public and private bodies for contracts to deliver services consistent with cost recovery and the achievement of value for money. The partnership can be realized through an array of models and in this paper priority is given to the DBFO (design-build-finance-operate) model, due to its importance in implementation. The DBFO model is considered to be a synonym for the public/private partnership, as it is the most suitable for complex projects and gains the most benefits.

Drivers and differentiators: a grounded theory study of procurement in public and private organizations

2020 ◽  
Vol 20 (3) ◽  
pp. 265-285
Author(s):  
Dolores Kuchina-Musina ◽  
John Charles Morris ◽  
Joshua Steinfeld
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Decision Making Process ◽  
Theory Approach ◽  
Public And Private ◽  
Content Type ◽  
Private Organizations ◽  
Contracting Process ◽  
Federal Contracting ◽  
Grounded Theory Approach

Purpose The purpose of this study is to examine procurement professionals’ perceptions of public-private partnerships in contract arrangements and to explore decision-making that takes place in the contracting process. Design/methodology/approach A grounded theory approach is applied to Simon’s (1947) model of decision-making to better understand the perceptions of procurement professionals, especially because it pertains to public vs private sector contexts. The researchers collected data by conducting interviews and observing a compliance webinar of federal contracting employees. Findings The results show that in the decision-making process, Simon’s illustration of a means-end hierarchy is applicable for procurement decision-making because it is driven by activities that are evaluated using aims established by the organization. Practical implications The implications are that, in the procurement decision-making process, a means-end hierarchy is driven by the activities that are evaluated using aims established by the organization. Essentially, the activities are associated to a mean, a mean is associated to a sub-goal and the sub-goal supports the main aim of the organization. Social implications This study supports the notion that training, information and procedures are a way for organizations to control behaviors and promote consistent results from their subordinates. Originality/value This study contributes by examining the drivers of procurement decision-making. Despite previous literature that focuses on practitioner discretion or emphasizes on socio-economic factors, this study highlights the linkages between practitioner decision-making and organizational aims and objectives. As such, the paper serves to illustrate the vital connection between procurement activities and outputs.

Supplier development and public procurement: allies, coaches and bedfellows

2014 ◽  
Vol 27 (7) ◽  
pp. 550-563 ◽  
Author(s):  
David Mark McKevitt ◽  
Paul Davis
Keyword(s):  
Psychosocial Support ◽  
Public Procurement ◽  
Principal Component ◽  
Political Support ◽  
Supplier Development ◽  
Supplier Relationships ◽  
Content Type ◽  
Strategic Approach ◽  
Strategic Perspective ◽  
Mentoring Support

Purpose – Using the lens of mentoring theory the authors test the extent to which public buyers informally support suppliers and the influence of organisational context on mentoring support. The paper aims to discuss these issues. Design/methodology/approach – Principal component analysis was used to analyse questionnaire responses from over 300 public buyers in Ireland. Cluster analysis produced three mentor profiles. Findings – The findings show a positive relationship between organisations that take a strategic approach to suppliers and buyers who offer career and psychosocial support to suppliers. However, those organisations that lack a strategic perspective of suppliers saw buyers offer political support and coaching. Research limitations/implications – The implications are that coaching and political support may compensate for deficits in organisational support for suppliers generally. The findings contribute to a growing literature on informal interaction opportunities in public procurement. Originality/value – To date research of supplier development is limited to formal developmental activities and in the context of private sector buyer-supplier relationships.

A transaction cost approach for public procurement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aksel I. Rokkan ◽  
Sven A. Haugland
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Public Procurement ◽  
Theoretical Perspective ◽  
Public Agencies ◽  
Private Companies ◽  
Supplier Relationships ◽  
Content Type ◽  
The Public ◽  
Market Governance

Purpose This paper aims to develop a theoretical framework based on transaction cost economics that identifies key factors shaping public agencies’ governance of supplier relationships and related performance implications. Design/methodology/approach The paper presents an extended transaction cost framework for research on public procurement (PP) with a corresponding set of propositions. Transaction cost theory and specific features of and challenges to the PP function identified in extant literature constitute the main elements of the framework. Findings This conceptual paper makes three sets of proposals. First, public agencies tend to rely on market governance of supplier relationships and when PP deploys non-market governance, such governance tends to be of a unilateral (vs bilateral) kind. Second, increases in purchasing competence and autonomy of PP and particularly if implemented in tandem, will reduce PP’s overreliance on market governance and increase PP’s use of non-market governance. Third, PP should perform better for less complex transactions – and when contracting complexity relates to safeguarding of specific assets rather than when complexity relates to environmental and behavioral uncertainty. Increases in competence and autonomy should increase PP’s performance, particularly for complex transactions. Practical implications Public agencies may be in a better position to align governance solutions with transaction complexities by developing their procurement competence, decentralizing procurement decisions and increasing the flexibility of national and international procurement regulations. Private companies selling to public agencies need to be aware of and able to adapt to PP practices such as extensive use of market governance and unilateral governance as the primary form of non-market governance. Social implications The paper discusses how public agencies can improve procurement performance through better alignment of governance of supplier relationships with transaction attributes and thereby increase the quality of public services. Originality/value The paper relies on a well-established theoretical perspective, enabling identification (and, potentially, correction) of governance misalignment in the public sector.

Professionalism as social responsibility in procurement and administration

2017 ◽  
Vol 29 (3) ◽  
pp. 320-343 ◽  
Author(s):  
Joshua Steinfeld ◽  
Clifford McCue ◽  
Eric Prier
Keyword(s):  
Social Responsibility ◽  
Public Procurement ◽  
Public And Private ◽  
Actual Performance ◽  
Content Type ◽  
Job Tasks ◽  
The Public ◽  
Public And Private Sector ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this empirical study is to identify the job tasks where decisions regarding social responsibility are likely to occur and assess the potential connections between social responsibility and professionalism. Design/methodology/approach A job study conducted by the Universal Public Procurement Certification Council (UPPCC) of 2,593 practitioners is used for data collection. Factor analysis is applied to a set of 75 procurement job tasks to determine the relationship between practitioners’ performance and management of job tasks and social responsibility variables. Findings The results suggest that there are specific job tasks performed and managed in both public and private sector procurement that share a unique relationship with social responsibility variables. Research limitations/implications The manuscript advances the research on professionalism in procurement and administration through empirically testing job tasks performed and managed by practitioners and identifying relationships between job tasks according to a professional orientation toward social responsibility. Practical implications The study shows that specific job tasks are performed and managed in procurement and administration with a social responsibility consideration. Social implications The technical nature of job tasks found to be related to social responsibility suggests a paradoxical view of the politics-administration dichotomy, and the notion that neutral tasks of both the public and private sectors are not void of a social function. Originality/value One attribute of professionalism in the literature, social responsibility, is operationalized through actual performance and management of job tasks by practitioners.

scholarly journals Creating relational capital through socialization in project alliances

2018 ◽  
Vol 38 (6) ◽  
pp. 1387-1421 ◽  
Author(s):  
Kirsi Aaltonen ◽  
Virpi Turkulainen
Keyword(s):  
Design Methodology ◽  
Relational Capital ◽  
Development Phase ◽  
Supplier Relationships ◽  
Content Type ◽  
Organizational Settings ◽  
Northern European ◽  
Complex Projects ◽  
Empirical Context ◽  
Insight Into

PurposeThe purpose of this paper is to elaborate the understanding of socialization in the context of temporary operations and organizational settings, using project alliance – the most contemporary approach to the management of large and complex projects – as an example. In particular, the paper also assesses how informal and formal socialization mechanisms are used to facilitate relational capital in such a setting.Design/methodology/approachData were collected by two case studies of complex infrastructure projects in a Northern European city. The analysis focuses on how socialization is managed across organizational interfaces within the alliance organization during the project tendering and development phase to create relational capital.FindingsThe findings indicate that significant emphasis is put on socialization in project alliances. However, while in the tendering phase both informal and formal socialization mechanisms are used to create relational capital; in the development phase informal socialization mechanisms are associated with higher levels of relational capital and formal socialization mechanisms are used to maintain the level of relational capital.Originality/valueWhile operations and supply chain management research argues that socialization is critical to manage organizational interfaces and to create relational capital in buyer-supplier relationships, research has mainly focused on ongoing operations. This study complements the prior research by developing further insight into socialization in the context of temporary operations and organizational settings; such settings create a unique empirical context, posing different managerial challenges as the results also indicate.

scholarly journals Driving sustainable supply chain management in the public sector

2014 ◽  
Vol 19 (3) ◽  
pp. 351-366 ◽  
Author(s):  
Markus Amann ◽  
Jens K. Roehrich ◽  
Michael Eßig ◽  
Christine Harland
Keyword(s):  
Structural Equation ◽  
Public Procurement ◽  
Equation Modeling ◽  
Sustainable Supply Chain ◽  
Socially Responsible ◽  
Member States ◽  
Content Type ◽  
Eu Member States ◽  
Policy Goals ◽  
Sustainability Policy

Purpose – The purpose of this paper is to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers and their achievement through contract award. Design/methodology/approach – Two hypotheses based on extant literature and the inducement–contribution theory were tested by means of a survey of 281 procurement files from 2007 to 2009 relating to eight product categories and four European Union (EU) member states. Data were analyzed using structural equation modeling. Findings – Findings indicate that public procurement was more effective in influencing socially responsible goals than environmental goals. In terms of supplier readiness, vendors achieved greater progress in delivering green than socially responsible operations. Research limitations/implications – The collection and analysis of data are based on procurement files, which is a new but also a complex procedure. In comparison to survey data, the data from procurement file analysis are less biased. Practical implications – Public procurement practitioners and sustainability policymakers should consider the use of public procurement as a lever to attain environmental and socially responsible goals. Social implications – Evidence has been provided to demonstrate the strategic use of public procurement impacts on environmental and socially responsible goals, thereby benefiting society. Originality/value – This study contributes in three main ways: first, by adding to existing, limited research on the use of public procurement as a lever of policy goals attainment; second, by examining environmental and socially responsible policy in one study; and third, through providing evidence across EU member states.

Public procurement for innovation and civil preparedness: a policy-practice gap

2017 ◽  
Vol 30 (4) ◽  
pp. 342-356 ◽  
Author(s):  
Isabell Therese Storsjö ◽  
Hlekiwe Kachali
Keyword(s):  
Public Procurement ◽  
Structured Interviews ◽  
Public Authorities ◽  
Policy Makers ◽  
Content Type ◽  
Policy Practice ◽  
Societal Needs ◽  
Policy Goals ◽  
European Union Legislation ◽  
Practice Gap

Purpose The purpose of this paper is to give a deeper understanding of public procurement for innovation and civil preparedness. The paper focuses on how the policy goals of innovation and preparedness are implemented in procurement practice, and explores the issues that affect innovation- and preparedness-oriented procurement. Design/methodology/approach The study is exploratory and based on empirical data from semi-structured interviews with 92 informants in the healthcare, energy and water services sectors in Finland. Interview data were analysed using a coding template, and further categorised to answer the research questions. Findings The study brings to light how procurers perceive the different but overlapping policy goals of innovation and preparedness, and whether and how the policy goals are turned into outcomes in the procurement process. Research limitations/implications The data were collected from case sectors in Finland. However, considering the adoption of European Union legislation, some of the findings are generalisable in other sectors, organisations and countries. Practical implications The paper highlights aspects that can aid procurers, suppliers and policy-makers in understanding how public procurement can be an instrument linking innovation and civil preparedness. Social implications It cannot be overemphasised that populations are exposed to more and, arguably, greater hazards. Public authorities can use innovative solutions and processes in meeting multiple objectives such as everyday societal needs as well as civil preparedness and planning. Originality/value Such research, purposely sampling case sectors providing critical services, has not been undertaken before in Finland. This work provides valuable information for organisations involved in public procurement, innovation and civil preparedness.

Comparing public and private organisations in their quest to become a preferred customer of suppliers

2020 ◽  
Vol 20 (2) ◽  
pp. 119-144 ◽  
Author(s):  
Holger Schiele
Keyword(s):  
Public Procurement ◽  
Influencing Factor ◽  
Well Being ◽  
The Other ◽  
Data Sets ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Public Money ◽  
Public Organisations

Purpose In industrial procurement, the concept of supplier satisfaction has gained increasing attention. Satisfied suppliers have been found to provide better prices, more innovations and priority in bottleneck situations. This paper aims to analyses in how far the concept of supplier satisfaction can be transferred to the public procurement domain. Design/methodology/approach Two large quantitative data sets are compared, one from a sample of suppliers evaluating their industrial clients, the other from a public customer being evaluated by its suppliers. Findings The same criteria which explain supplier satisfaction with its customer, which are relevant in the private and industrial case also hold true for the public case, namely, growth opportunity, profitability, relational behaviour and operative excellence are important criteria for distinction. Only relational behaviour by the customer scored significantly higher in the public sample, indicating that this is more an influencing factor for public organisations. Research limitations/implications Showing the relevance of supplier satisfaction also for the public domain paves the way to further research better understanding how to measure satisfaction and how to increase suppliers’ satisfaction. Practical implications Buying organisations are asked to apply a form of “upstream marketing”, in which they actively try to promote their organisation with their suppliers and increase its attractiveness. This is a new way to get access to better services from suppliers. Social implications Analysing supplier satisfaction, on the one hand, allows to improve public purchasing acts, which generate social benefits in better using public money. On the other hand, caring for the well-being of suppliers is per se contributing to a socially more desirable world. Originality/value Supplier satisfaction is a new concept in the public procurement domain. This is the first paper to introduce this approach.

scholarly journals Supply chain alignment as process: contracting, learning and pay-for-performance

2018 ◽  
Vol 38 (3) ◽  
pp. 732-755 ◽  
Author(s):  
Kostas Selviaridis ◽  
Martin Spring
Keyword(s):  
Supply Chain ◽  
Pay For Performance ◽  
Service Level ◽  
Structured Interviews ◽  
Supplier Relationships ◽  
Content Type ◽  
Performance Contracting ◽  
Important Means ◽  
Chain Alignment ◽  
Contracting Process

Purpose The purpose of this paper is to understand how buyers and suppliers in supply chains learn to align their performance objectives and incentives through contracting. Design/methodology/approach Two longitudinal case studies of the process of supply chain alignment were conducted based on 26 semi-structured interviews and 25 key documents including drafts of contracts and service level agreements. Findings The dynamic interplay of contracting and learning contributes to supply chain alignment. Exchange-, partner- and contract framing-specific learning that accumulates during the contracting process is used to (re)design pay-for-performance provisions. Such learning also results in improved buyer-supplier relationships that enable alignment, complementing the effect of contractual incentives. Research limitations/implications The study demonstrates that the interplay of contracting and learning is an important means of achieving supply chain alignment. Supply chain alignment is seen as a process, rather than as a state. It does not happen automatically or instantaneously, nor is it unidirectional. Rather, it is a discontinuous process triggered by episodic events that requires interactive work and learning. Practical implications Development of performance contracting capabilities entails learning how to refine performance incentives and their framing to trigger positive responses from supply chain counterparts. Originality/value The paper addresses supply chain alignment as a process. Accordingly, it stresses some important features of supply chain alignment.

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