scholarly journals SME’s disinclination towards subcontracting in the public sector markets: an attributional perspective

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Temidayo Akenroye ◽  
Jonathan D. Owens ◽  
Adekunle Sabitu Oyegoke ◽  
Jamal Elbaz ◽  
H.M. Belal ◽  
...  

Purpose This study aims to examine the causes of small and medium-sized enterprises (SMEs) disinclination towards subcontracting in public sector markets. Previous studies have revealed that UK SMEs are reluctant to do business with the public sector through the subcontracting route, but the reasons for this lack of enthusiasm have not been widely researched. Design/methodology/approach Drawing on semi-structured interviews with SMEs competing for public contracts in North West England, a qualitative study was performed, from which several themes emerged. Findings The findings were synthesised into a framework underpinned by attribution theory, to portray situationally and dispositionally caused factors that were used to interpret SMEs’ behaviour. Social implications The findings can guide policy development and government interventions in developed and developing countries, aimed at using public procurement as a policy tool to develop the small business sector. Originality/value This paper contributes in a unique way to an emerging discourse on how subcontracting can facilitate the access of SMEs to government procurement spending. It adds to knowledge regarding the explanatory power of attribution theory – from its base in social psychology.

2020 ◽  
Vol 35 (12) ◽  
pp. 2051-2065 ◽  
Author(s):  
Lisa Melander ◽  
Ala Pazirandeh Arvidsson

Purpose The purpose of this paper is to discuss how a seller can use interactions to respond to public procurement needs for innovation when the buying side is restricted by public procurement regulations. Design/methodology/approach The authors collected data using qualitative semi-structured interviews of different empirical examples, in which private–public interactions of four different high-technological products are studied. Two products belong to the defence industry and two to the civil industry. Findings The findings point to three types of innovations in public procurement: product, service and business model. The empirical examples further indicate, as suggested in previous studies, that innovation is hindered by regulations that limit interaction between suppliers and the public. In addition, the empirical examples indicate that firms mobilize actors in their network when the buyer is restricted in regard to interaction. The findings also add to the IMP literature by comparing interactions in the three types of innovations in the public procurement context. Originality/value Public procurement is an area where innovations are lagging behind, compared with private procurement. Research points to limited interaction between actors as an obstacle to innovation in public sector collaborations. This paper extends the literature on how organizations interact in the setting of public procurement. The authors identify demand and supply triggers for three types of innovations: product, service and business model innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.


2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mampe Kumalo ◽  
Caren Brenda Scheepers

PurposeOrganisational decline has far-reaching, negative emotional and financial consequences for staff and customers, generating academic and practitioner interest in turnaround change processes. Despite numerous studies to identify the stages during turnarounds, the findings have been inconclusive. The purpose of this paper is to address the gap by defining these stages, or episodes. The characteristics of leaders affect the outcome of organisational change towards turnarounds. This paper focusses, therefore, on the leadership requirements during specific episodes, from the initial crisis to the full recovery phases.Design/methodology/approachA total of 11 semi-structured interviews were conducted with executives from the public sector in South Africa who went through or were going through turnaround change processes and 3 with experts consulting to these organisations.FindingsContrary to current literature in organisational change, this study found that, in these turnaround situations, leadership in the form of either an individual CEO or director general was preferable to shared leadership or leadership distributed throughout the organisation. This study found four critical episodes that occurred during all the public service turnarounds explored, and established that key leadership requirements differ across these episodes. The study shows how these requirements relate to the current literature on transactional, transformational and authentic leadership.Practical implicationsThe findings on the leadership requirements ultimately inform the selection and development of leaders tasked with high-risk turnaround change processes.Originality/valueFour episodes with corresponding leadership requirements were established in the particular context of public sector turnaround change processes.


2017 ◽  
Vol 28 (3) ◽  
pp. 755-780 ◽  
Author(s):  
Sineenart Krichanchai ◽  
Bart L. MacCarthy

Purpose The purpose of this paper is to investigate vendor managed inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption. Design/methodology/approach Two contrasting VMI initiatives involving five organizations (three hospitals, one distributor and one manufacturer/supplier) are studied. A case study method with semi-structured interviews is used with triangulation in data collection, site visits and document analysis to enhance reliability and validity. The cases are analyzed and compared with respect to hospital, supplier, product and supply chain integration characteristics. Findings A successful public sector VMI initiative and an unsuccessful private sector VMI initiative are identified. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with a key customer. Hospital characteristics, including type of hospital, top management perspectives and the hospital’s willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in “lock-in” with a particular supplier. Research limitations/implications The cases have been conducted in one country, which may affect generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial. Practical implications VMI is advocated as being beneficial in many supply contexts. However, it is challenging to implement. The study identifies factors that affect the adoption of VMI for hospital pharmaceuticals and provides guidance on initiating VMI in a hospital context. Social implications The potential for VMI in public health projects to enable greater access to critical medicines is highlighted. Originality/value The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Mousa ◽  
Hiba Massoud ◽  
Rami Ayoubi

PurposeLittle research into organizational learning in the public sector in developing countries' is known. In this paper, the authors investigated the context of organizational learning in the public banks in Egypt.Design/methodology/approachAn ethnographic field research was employed by spending a month inside each of two public banks in Egypt. The ethnographic experience was operationalised by using direct observations of learning processes, procedures and practices, semi-structured interviews with learning specialists and focus group discussions with bankers. The authors used thematic analysis to determine the main themes in the previous data collection methods of ethnographic approach.FindingsThe findings confirmed a lack of clear focus for the organizational learning practices employed by the banks, which highlights issues of seriousness in undertaking and/or tackling organizational learning, and increased doubts in relation to the added value of the different forms of formal trainings bankers participate in. To enhance the culture and maintain effective functioning of formal organizational learning, the authors suggest considering the following three categories of barriers: purpose-related barriers, implementation and evaluation barriers.Originality/valueDespite the generalisability caveats associated with the organizations studied, the authors believe that this paper contributes to the existing theory of organizational learning as it provides insights and understanding on the purpose, frame, conduct and results of organizational learning in the public sector. More specifically, the study is unique and is different from previous relevant studies as it relies on ethnographical approach in exploring how organizational leaning practices are perceived in public banks in developing countries.


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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raúl Aparicio-Arias ◽  
Jenny Moreno

Purpose This paper aims to explore public procurement frameworks during disasters in Chile and New Zealand, identifying the factors that affect government procurement performance in disaster response. Design/methodology/approach This research adopted a case study methodology following a qualitative approach. Semi-structured interviews were conducted with government officers from Chile and New Zealand who had practice-relevant knowledge of public procurement and disaster management. Data was complemented by document reviews, including government reports and the records of disaster management organizations. Findings This paper finds public procurement to be negatively affected by several factors during disasters, including celerity and flexibility of response; market and supplier restrictions; pressures over procurement teams; centralism of procurement structures; lack of technical knowledge; competition and crossover of agreements; corruption; and price variations. Practical implications This paper includes policy recommendations on how to increase the effectiveness of disaster management and public procurement systems in countries at high risk of earthquakes and other disasters. Social implications This paper can help public procurement officers to provide a better response during disasters, supplying the goods and services required to the affected population in a timely and effective manner. Originality/value This paper addresses a gap in research by identifying factors which negatively impact government procurement and response during a disaster.


2016 ◽  
Vol 23 (3) ◽  
pp. 616-635 ◽  
Author(s):  
Anthony Flynn ◽  
Paul Davis

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.


2019 ◽  
Vol 16 (3) ◽  
pp. 262-276
Author(s):  
Karem Sayed Aboelazm ◽  
Attia Afandy

Purpose The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages of each method and the two methods of public procurement applied in the Arab Republic of Egypt in an attempt to overcome the disadvantages of the Egyptian system; and introduce a new framework for government procurement in Egypt. Design/methodology/approach The descriptive approach was used in the framework of the presentation and analysis of the concepts of centralized public procurement and decentralized public procurement. The comparative approach was used for presenting some of the experiences of countries in using public procurement methods. The legal approach was also used in the analysis of the legal frameworks governing the public procurement methods in the Arab Republic of Egypt. In addition, the case study methodology was used to study the role of the General Authority for Governmental Services in Egypt in the centralized public procurement processes. Findings This paper attempts to find the ideal method of public procurement in general and what is the method to be followed in the Egyptian case through the data presented and analysis of the Egyptian public procurement system. Research limitations/implications This paper attempts to present a model or a theory on how to determine the public procurement methods that should be used in a given country and give sufficient flexibility for the conformity between the two methods upon application depending on the ecological factors of each country. Practical implications This paper contributes to the development of the public procurement method in the Arab Republic of Egypt by showing the gap between the use of the centralized approach and the decentralized approach at all levels and providing solutions to bridge this gap. Social implications This paper provides implications to reduce corruption, increase transparency and give the opportunity to the largest number of private shareholders to participate in public procurement. Originality/value Although there is some literature on centralized and decentralized public procurement, there is a lack or scarcity of research and academic articles on this subject (Patrucco et al., 2017). This paper attempted to do so by filling this gap in this area of research.


2017 ◽  
Vol 33 (2) ◽  
pp. 178-194 ◽  
Author(s):  
Thomas Ahrens ◽  
Aishah A.K. Al-Sereidi ◽  
Halimah F. Al-Shaebi ◽  
Asra H. Rahmdel

Purpose The purpose of this paper is to explore the specific meanings underlying the general antecedents of organisational innovativeness (OI) in one specific public sector context, to fill empirically the categories employed in prior quantitative research and to understand better some of the opportunities for strengthening facilitators of OI and overcoming barriers to OI that present themselves in particular contexts. Design/methodology/approach This research is based on a field study. It uses 29 semi-structured interviews with the members of UAE government and semi-government organisations. The research methodology is qualitative: it seeks to elucidate the meanings that structure the respondents’ understandings of innovation at work. Findings Across the UAE public sector there are great differences in organisational members’ interest in, and readiness to engage with, OI. Members of the public sector tended to conceptualise OI as a set of individual efforts and relationships in which the trust with superiors played a key role, as did the availability of individual rewards. For some respondents communication served as an umbrella term to denote organisational characteristics that would enable individuals to join efforts to make the public sector more innovative. Overall, the great variations in respondents’ ability to articulate and conceptualise the antecedents of OI suggests that organisational capabilities to support OI need strengthening. Research limitations/implications The paper’s insights are based on the study of the public sector of only one country and may be difficult to generalise to other countries. Practical implications The paper suggests ways in which Emirati public sector organisations can strengthen the facilitators of OI and overcome the obstacles presented by the barriers to OI in order to help public sector leaders and employees make innovation a routine element of their day-to-day work. Originality/value The paper presents a first attempt at using qualitative research to deepen our understanding of the antecedents of organisational innovativeness in the public sector.


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