Can public procurement be strategic? A future agenda proposition

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patricia Guarnieri ◽  
Ricardo Corrêa Gomes

Purpose This paper aims to demonstrate how public procurement can be strategic. Design/methodology/approach A systematic literature review (SLR) was conducted following the protocol from Pagani, Kovaleski and Resende (2015), called Methodi Ordinatio, to select the relevant literature on this topic. The analysis of papers selected was carried out following the procedures of categorical content analysis (Bardin, 1977). Findings In all, 68 full papers were analyzed from Science Direct and Web of Science. The results present the main characteristics of publications analyzed and the authors propose some categories of strategic practices related to public procurement that are in turn related to: sustainability, partnerships and supplier management, information systems and technology and other issues. Research limitations/implications The main limitations of this paper are: the publication period considered of the articles selected is from January 2012 to March 2017; the databases Science Direct and Web of Science are selected as the sources of articles; the Methodi Ordinatio is used as the basic protocol of the SLR and, consequently, the inclusion and exclusion criteria described in the steps of the protocol are used. Practical implications Showing how the public procurement can be strategic, this paper highlights the benefits of best procurement practices; similarly, it highlights those practices adopted by the private sector, which can highly contribute to the creation of value in public services that are aligned with the concept of obtaining “the best value for money”. Social implications The incorporation of strategic practices in public procurement can result in the best expenditure of public resources and the reduction of corruption in the process of procurement. Originality/value This paper contributes to synthesize the knowledge on strategic procurement, a topic exploited by few people in the public organizations. It differentiates from other literature reviews already published, considering that these studies do not deal, specifically, with public procurement and, also, do not use protocols of SLR. Moreover, this paper indicates a future agenda of research, which can aid researchers and practitioners acting in this field of knowledge.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Silvia Pilonato

PurposeThe paper aims to explore the links between corruption and accounting in the public procurement setting. In particular, it investigates how accounting can fight or facilitate corruptionDesign/methodology/approachThe study takes a qualitative approach, analyzing one of the worst recent Italian cases of corruption, the “MOSE” trial. Documents produced during the trial are analyzed.FindingsThe findings contribute to our understanding of how the (mis)use of accounting can help to build a “sustainable” corruption network, and be used to create, maintain and share corruptive cash flows. Participating actors can use accounting tools to coordinate their actions and organize their misconduct. Accounting may also reveal the existence of such networks, however, by enabling the fiscal police to discover tax fraud, and by reconstructing how a corruption network functions from records kept to manage internal cash flows and the provision of other benefits.Practical implicationsBecause corruption is a worldwide phenomenon, a better understanding of how it functions may lead (among other things) to the identification of more effective prevention measures. Particular attention should be paid to events that favor corruption, such as extraordinary occurrences, huge amounts of public resources and new institutional structure without appropriate control and balance tools.Originality/valueGiven the specific features of episodes of corruption, qualitative studies on this topic are scarce. Little is known about corruption processes, and even less about the part that accounting can play in them. The MOSE case offers some intriguing insight, showing how accounting can be used to build a “sustainable” corruption network by collecting slush funds and facilitating benefit-sharing among individuals.


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.


Author(s):  
Frank Steller

The Best Value Approach (BVA) offers an innovative method to get the most out of Supplier-Customer Relationships (SCRs). This paper argues that the preparation phase should be enhanced when applying BVA in the context of public procurement. Literature on SCRs learns how successful relationships are governed bilaterally during execution. This literature also describes which processes are taking place prior to contracting. Here, the concepts of this literature areapplied to analyses the specific public procurement context. The impact of this context is, that the tender process is governed unilaterally. Further, BVA - as applied in public procurement - is viewed through the lenses of the SCR literature. Although BVA partly leads to bilateral governance, the impact of the public procurement context remains. For practitioners wanting to improve BVA’s effect in public procurement, the paper offers an enhancement of the approach. For theory building, the analysis leads to a further differentiation of the concept of governance. For regulators, it offers something to consider: focus on principles or rules?


2015 ◽  
Vol 15 (2) ◽  
pp. 177-207 ◽  
Author(s):  
Clifford P. McCue ◽  
Eric Prier ◽  
David Swanson

Procurement systems in democratic governments across the globe face competing demands, conflated values and goals, and are being called upon to address societies "wicked" problems under the rubric of government "reform." As a result, government purchasing professionals are being challenged to develop new flexible structures and processes that devolve purchasing responsibility, yet maintain accountability and control; limit the opportunity for fraud/mismanagement while reducing operational constraints; increase economic efficiency while satisfying political demands for minority/local/small and women owned business participation; increase open and transparent competition while achieving best value; and applying best practices while confronting legal limitations. Essentially these dilemmas have placed public procurement at the forefront of government reform efforts. The current study delineates the nature of five dilemmas that purchasing practitioners face, and the implications of these dilemmas for purchasing in the public sphere are explored. Given the complexity of these dilemmas, procurement professionals will be continually called upon to balance these inherent tensions with little guidance from policymakers or elected officials.


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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Mendoza-Silva

PurposeInnovation is considered an important stage in the process of competitiveness of companies. While there is an extensive literature in the management and innovation field that shows the characteristics that enhance a firm's ability to innovate, there is still no consensus on its determinants and nature. This study aims to advance the understanding of innovation capability (IC) by conducting a systematic review of relevant literature at the firm level.Design/methodology/approachThe study reviews the literature by applying the categorization and contextualization of qualitative strategies. The study gathered 137 peer-reviewed papers from Scopus and Web of Science databases.FindingsThe papers were analysed and synthesized into an integrated framework that links IC with its internal and external determinants, and its consequences. In doing this, this study proposes directions for future investigations that might enlighten a better understanding of IC.Practical implicationsThe study provides elements that can be useful during the design and implementation of innovative initiatives in a firm.Originality/valueThe paper jointly examines in the same model the nature, antecedents and consequences of IC. In the same vein, the framework provides the little-researched links between those themes in the IC literature.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michal Plaček ◽  
Martin Schmidt ◽  
František Ochrana ◽  
Gabriela Vaceková ◽  
Jana Soukopová

Purpose The paper aims to deal with the analysis of the factor leading to the repeated selection of the specific supplier and the effect of this recurrent selection on overpricing of public contracts. Design/methodology/approach A mix of quantitative and qualitative methods is used to achieve this goal. To analyze the chances of obtaining repeated contracts, the logistic regression method is used. To analyze the factor of overpriced contracts, the classic ordinary least squares regression model is used. The focus group method is then used to explain the factors acting on the part of the contracting authorities. Findings The results show that the prior procurement of a given contracting authority, or work for the public sector in general, has a statistically significant effect on the conclusion of contracts. The use of less-transparent forms of input has a strong impact. The non-transparent selection of suppliers rather than repetition of contracts generally results in the over-pricing of contracts. The IT sector is an exception. Social implications This research is also essential for real public policy. Given the amount of GDP allocated to the public procurement market, it makes sense to continually seek room for improvement. Here is an attempt to find this by examining the contracting authorities’ behavior when awarding repeated contracts. Originality/value This research is original because it looks at the problem of the contracting authority in the wider context and optics of the path dependency theory, which has not yet been applied to the public procurement environment. The focus is also on IT procurement, which according to this study has not been empirically investigated in this way, is also innovative.


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.


2020 ◽  
Vol 14 (5) ◽  
pp. 737-755
Author(s):  
Luiz Antonio Felix Júnior ◽  
Wênyka Preston Leite Batista da Costa ◽  
Luciana Gondim de Almeida Guimarães ◽  
Glauber Ruan Barbosa Pereira ◽  
Walid Abbas El-Aouar

Purpose The participation of society is a valuable aspect of the governability of cities, for it strengthens the citizens’ collaborative component. Such participation, which is seen as social, is considered an essential element for the design of a smart city. This study aims to identify the factors that contribute to social participation in the definition of budgetary instruments’ planning. Design/methodology/approach Concerning the methodological instruments, this study is characterised by a quantitative and descriptive approach and uses a multivariate data analysis with a sample of 235 respondents. Findings The study’s findings identified a framework that portrays elements that collaborate with the social participation in the definition of the public administration’s budgetary instruments, which are considered as elements that are able to develop the role of the popular participation and are characterised by the definition of a smart city by enabling more assertiveness in society’s needs. Practical implications Identification of a framework that brings out elements that are able to develop the popular participation in the definition of budgetary instruments. Then, one scale of elements that contribute to social participation in the definition of the public administration’s budgetary instruments theoretically represented and statistically validated, thus contributing to the continuity of studies on social participation. Social implications Through studies on social participation in budgetary planning, it is possible to guarantee a better allocation of public resources through intelligent governability. Originality/value The research can bring theoretical elements about social participation in the definition of budget instruments for a statistical convergence through the perception of the sample.


2014 ◽  
Vol 27 (6) ◽  
pp. 486-500 ◽  
Author(s):  
Olivier Mamavi ◽  
Haithem Nagati ◽  
Frederick T. Wehrle ◽  
Gilles Pache

Purpose – The purpose of this paper is to study the impact of spatial proximity on supplier selection in the French public sector. While French public procurement legislation forbids consideration of supplier location in the procurement process, public contractors may still rely on spatial proximity for complex transactions necessitating mutual adjustments with suppliers. Design/methodology/approach – Using French Official Journals (BOAMP), the authors compiled 565,557 transactions completed on three public procurement markets between 6,182 contractors and 26,570 suppliers, over a period of six years (between 2006 and 2011). The authors conducted a two-level hierarchical linear auto-regression analysis and a feature evaluation analysis for all transactions. Findings – The paper finds significant variation between the transactions on different markets: a negative effect of spatial proximity on the number of contract notices in the public market and a positive effect of spatial proximity on the number of notices in the services and supplies markets. The difference lies in the levels of mutual adjustment required to optimally manage the relationship between public contractor and supplier. Research limitations/implications – The research is based on an econometric analysis conducted uniquely in the French context, which calls into question the external validity of the results obtained. The study also rests on segmentation into three aggregate markets, which might be considered too general. Originality/value – Rather than analyze public contractors’ perceptions of the importance of the criterion of spatial proximity, the paper examines 565,557 actual transactions. The results point to the emergence of a new type of relationship with certain suppliers, which should lead public contractors to integrate relationship management competencies, in addition to legal and economic competencies, in the organization of calls for tenders.


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