Clarifying strategic alignment in the public procurement process

2020 ◽  
Vol 33 (6/7) ◽  
pp. 791-807
Author(s):  
Henrico Plantinga ◽  
Hans Voordijk ◽  
André Dorée

PurposeWhile the need for strategic alignment in public management has been recognized, there is a lack of conceptual clarity to support its application in practice. Focusing on the specific field of public procurement, this paper clarifies and illustrates how the concept of strategic alignment can be applied when strategizing the public procurement process.Design/methodology/approachThe current literature on strategic alignment in public procurement is critically reviewed to identify ambiguities that hamper its application in practice. Based on this review, an analytical framework is developed that conceptualizes strategic alignment as that between the procurement instruments used in a sourcing project and the corresponding higher-level strategies. The framework is empirically illustrated by applying it in a case study that reconstructs the procurement strategy for an innovation projectFindingsStrategic alignment in the public procurement process can be demonstrated by identifying, explicating and logically linking reasoning and trade-off decisions on competing priorities across multiple levels and dimensions of strategyOriginality/valueAlthough creating alignment between policy and public procurement practice is generally held to be important in the public management literature, it is only discussed on high levels of abstraction. This paper provides clarity by investigating alignment in greater detail.

2020 ◽  
Vol 20 (4) ◽  
pp. 403-421
Author(s):  
Inger Johanne Pettersen ◽  
Kari Nyland ◽  
Geraldine Robbins

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.


2019 ◽  
Vol 26 (3) ◽  
pp. 836-853
Author(s):  
Amit Agrahari ◽  
Samir K. Srivastava

PurposeGovernment 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/approachThe 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.FindingsUsing 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/implicationsThis 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 implicationsThe 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 implicationsThe 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/valueThis 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.


2018 ◽  
Vol 32 (1) ◽  
pp. 255-279 ◽  
Author(s):  
Ileana Steccolini

Purpose The purpose of this paper is to reflect various pathways for public sector accounting and accountability research in a post-new public management (NPM) context. Design/methodology/approach The paper first discusses the relationship between NPM and public sector accounting research. It then explores the possible stimuli that inter-disciplinary accounting scholars may derive from recent public administration studies, public policy and societal trends, highlighting possible ways to extend public sector accounting research and strengthen dialogue with other disciplines. Findings NPM may have represented a golden age, but also a “golden cage,” for the development of public sector accounting research. The paper reflects possible ways out of this golden cage, discussing future avenues for public sector accounting research. In doing so, it highlights the opportunities offered by re-considering the “public” side of accounting research and shifting the attention from the public sector, seen as a context for public sector accounting research, to publicness, as a concept central to such research. Originality/value The paper calls for stronger engagement with contemporary developments in public administration and policy. This could be achieved by looking at how public sector accounting accounts for, but also impacts on, issues of wider societal relevance, such as co-production and hybridization of public services, austerity, crises and wicked problems, the creation and maintenance of public value and democratic participation.


2018 ◽  
Vol 18 (4) ◽  
pp. 336-354 ◽  
Author(s):  
Katriina Alhola ◽  
Ari Nissinen

Purpose The purpose of this study is to promote clean technology development and diffusion through public procurement. Finland is ranked high among the countries that develop clean technology innovations. Innovative public procurement could be one means to boost the diffusion of such technologies. However, this potential is still somewhat unexploited, as innovative public procurement is an unsystematic method of procuring in Finland and the EU, partly because of an inability to understand innovation potential in the market and to implement innovative procurement. Design/methodology/approach In this paper, the authors illustrate how cleantech aspects can be integrated into the public procurement process. The authors study the key success factors and conditions that have led to a successful cleantech procurement process by exploring realized cases of innovative public clean technology procurement. Findings The results suggest that innovative public procurement, in which clean technology is an integrated part, may occur in different forms, from a procurement of a highly improved product or solution to a product-service system or a collaborative symbiosis system. Life cycle consideration, strategic commitment and recognition of needs of the procuring unit were prioritized as the most important factors leading to successful integration of cleantech aspects into procurement process.


2018 ◽  
Vol 32 (1) ◽  
pp. 280-306 ◽  
Author(s):  
Lee D. Parker ◽  
Kerry Jacobs ◽  
Jana Schmitz

Purpose In the context of global new public management reform trends and the associated phenomenon of performance auditing (PA), the purpose of this paper is to explore the rise of performance audit in Australia and examines its focus across audit jurisdictions and the role key stakeholders play in driving its practice. Design/methodology/approach The study adopts a multi-jurisdictional analysis of PA in Australia to explore its scale and focus, drawing on the theoretical tools of Goffman. Documentary analysis and interview methods are employed. Findings Performance audit growth has continued but not always consistently over time and across audit jurisdictions. Despite auditor discourse concerning backstage performance audit intentions being strongly focussed on evaluating programme outcomes, published front stage reports retain a strong control focus. While this appears to reflect Auditors-General (AGs) reluctance to critique government policy, nonetheless there are signs of direct and indirectly recursive relationships emerging between AGs and parliamentarians, the media and the public. Research limitations/implications PA merits renewed researcher attention as it is now an established process but with ongoing variability in focus and stakeholder influence. Social implications As an audit technology now well-embedded in the public sector accountability setting, it offers potential insights into matters of local, state and national importance for parliament and the public, but exhibits variable underlying drivers, agendas and styles of presentation that have the capacity to enhance or detract from the public interest. Originality/value Performance audit emerges as a complex practice deployed as a mask by auditors in managing their relationship with key stakeholders.


2018 ◽  
Vol 18 (4) ◽  
pp. 355-378 ◽  
Author(s):  
Paulos Abebe Wondimu ◽  
Ali Hosseini ◽  
Jadar Lohne ◽  
Ola Laedre

Purpose Early contractor involvement (ECI) faces many barriers when it is implemented in public procurement, given that it is different from traditional business practices. Primarily, public owners face a major challenge, as they should treat all bidders equally. The purpose of this paper is to explore suitable ECI approaches that public owners could use. Design/methodology/approach In addition to a literature and document study, 14 semi-structured in-depth interviews with key personnel from 11 cases selected from Norwegian public bridge projects were carried out. Findings In all, 23 unique approaches of ECI were identified during this research (16 from literature and 7 new from case projects). The findings provide a new direction to ECI through introducing new approaches of ECI from the case projects. Originality/value This paper for the first time presents several alternatives of ECI approaches for public owners with the intention of illustrating ECI is actually possible in the public project procurement. Furthermore, it presents for the first time success factors of ECI with the intention of increasing the understanding of ECI concept from a public procurement perspective.


2020 ◽  
Vol 13 (1) ◽  
pp. 86-94
Author(s):  
I.Yu. Fedorova ◽  

The paper considers innovations in the field of legal regulation of public procurement at the last stage of the reform carried out in the public finance management system. The main attention is paid to filling the gaps in the legislative framework of the contract system in the field of procurement through the introduction of more effective instruments in 2018–2019, measures are considered that can increase the efficiency of the procurement process, and the conclusion is drawn about the effect of procurement on the development of individual sectors of the economy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Varaprasad Mallisetti ◽  
Tharun Dolla ◽  
Boeing Laishram

Purpose The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement. Design/methodology/approach Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement. Findings The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages. Originality/value The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.


Author(s):  
Simeon Wanyama

This chapter is about corrupt practices in the public procurement cycle. Taking the example of Uganda, it identifies what takes place at each of the stages of public procurement and examines the perspectives of stakeholders regarding alleged corruption, misappropriation, and fraudulent practices during the public procurement process. It also reviews the governance systems that have been put in place to try and stem out these malpractices and ensure proper governance in the administration of public procurement. The research followed a qualitative approach aimed at getting the views of stakeholders and understanding whether what is in place is adhering to the principles of public procurement which foster good governance and value for money. The findings of the study indicate that the perception of the majority of the respondents is that corruption is pervasive in public procurement in Uganda despite good laws, regulations, and guidelines that have been put in place and that it manifests itself at all the stages of public procurement.


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