scholarly journals Firms’ experience of SME-friendly policy and their participation and success in public procurement

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.

2017 ◽  
Vol 17 (3) ◽  
pp. 337-372 ◽  
Author(s):  
Anthony Flynn ◽  
Paul Davis

This paper develops and tests a model for explaining small and medium-size enterprise (SME) participation and success in public procurement. The model is informed by a capability-based view of public sector tendering that includes relational and procedural dimensions. To test the model a survey was carried out on firms competing for contracts with Irish public sector organizations (n = 3010). The survey was repeated one year later to demonstrate reliability (n = 3092). Overall, the results lend support to the model. Procedural capability is associated with frequency of tendering and typical value of contract sought. Relational capability is not. Procedural and relational capabilities are each significant in accounting for success rates in contract competitions and commercial orientation towards the public sector.


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 20 (4) ◽  
pp. 377-401 ◽  
Author(s):  
Carmela Di Mauro ◽  
Alessandro Ancarani ◽  
Tara Hartley

Purpose This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and supporting factors of MSMEs’ participation and success in public tenders. Design/methodology/approach The empirical analysis builds on a unique survey run by the Canadian federal government, which addressed firms either participating or not participating in public tenders. Model estimation on the survey data relies on sample selection methodologies, which allow separating determinants of MSMEs’ decision to participate from determinants of success. Findings Results provide evidence that costs stemming from asset specificity and uncertainty (e.g. costs of bidding, requirements for participation, bundling of contracts and award rules based on minimum price) affect participation in public procurement. Within MSMEs, micro-firms are the most discouraged from participating. However, after controlling for factors affecting participation, micro-firms emerge as having a higher success rate, possibly because of high specialization and joint participation with larger firms. Research limitations/implications Because of the cross-sectional nature of the data used for hypotheses testing, endogeneity may arise if ex post variables affect ex ante decisions. This may apply if participation in procurement feeds on success in past tenders. Social implications Findings may inform policies for the inclusion of smaller firms in the public marketplace. Originality/value To the best of the authors’ knowledge, this study is the first attempting to disentangle determinants of participation in public tenders from determinants of success. Separating the two aspects helps fine-tune SME-friendly public procurement policies, by identifying actions that effectively facilitate success of MSMEs in public tenders.


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 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.


2015 ◽  
Vol 28 (7) ◽  
pp. 510-527 ◽  
Author(s):  
Joshua M. Steinfeld ◽  
Eric Prier ◽  
Clifford McCue

Purpose – Procurement is a specific, yet dynamic area of work and study that is recognized as an occupation by the US Bureau of Labor Statistics (BLS). However, there is growing literature that substantiates differences in theory and practice, between procurement practitioners in the private and public sectors. The purpose of this paper is to validate the procurement occupational duties identified by the BLS with actual job activities performed and managed by public sector practitioners. Design/methodology/approach – The paper is based on a survey of public sector practitioners to obtain information with regards to occupational duties and job activities in public procurement, as compared to a BLS proxy for procurement. Findings – Public procurement practitioners complete the occupational duties identified by BLS, yet there is one occupational duty in public procurement that is absent from the BLS description for procurement. Practical implications – Empirical data and analysis identifies the potential for public procurement to be considered its own occupation separate from private sector procurement, providing a foundation for development, management, and professionalization of the field. Originality/value – The public procurement practitioners who completed the survey have a high degree of professional orientation based on certifications held and professional association membership, a foundation for generating applicatory results for studying the actual occupational duties in procurement. The specialized job activities performed and managed in perhaps the fastest growing occupation within public sector management are catalogued in this study.


2016 ◽  
Vol 31 (3) ◽  
pp. 222-248 ◽  
Author(s):  
Verena Tandrayen-Ragoobur ◽  
Rajeev Pydayya

Purpose This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage distribution. The paper then decomposed the gender wage differential using the Oaxaca and Blinder (1973) decomposition technique. Design/methodology/approach The study uses cross-sectional data from the Continuous Multi-Purpose Household Budget Survey (CMPHS), from 2006 to 2013. The sample size on average is around 12,000 households surveyed per year. Findings The results reveal that that gender wage differentials are prevalent in both economic sectors; however, the disparity is more pronounced in the private sector. In addition, the differences in wages are larger at the bottom compared to the top end of the wage distribution, suggesting the presence of sticky floors. Lastly, it was observed that the unexplained wage gap (discrimination) is higher in the private sector than in public sector across the years. Originality/value The literature on the gender wage gap in Africa is limited. This paper adds to the existing literature on gender wage differential with an analysis of the gender wage disparity across the public and private sectors in Mauritius.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leonada Raphael Mwagike ◽  
Ismail Abdi Changalima

PurposeThis paper analyzes procurement negotiators' skills and attributes by considering perceptions of procurement professionals in Tanzania.Design/methodology/approachThis study employed a cross-sectional research design in which procurement professionals' opinions were collected through questionnaires. The study proposed that the skills and attributes of procurement negotiators are necessary for negotiation proceedings, and they were tested through confirmatory factor analysis.FindingsFindings suggest that listening skills, persuasion skills, communication skills and planning skills are all important skills that contribute to overall procurement negotiation skills. Furthermore, trust, flexibility, honesty and emotion are statistically determined to be necessary attributes for procurement negotiators. All of the observed variables were statistically significant (p < 0.001) and contributed positively to explaining the skills and attributes of procurement negotiators.Research limitations/implicationsThe sample included only respondents from a single country. This may affect the generalization of results as there is a variation in institutional regulatory compliance governing public procurement undertakings in different countries. Also, the study did not include the outcome of negotiation proceedings and relied only on opinions collected from the procurement professionals in Tanzania.Practical implicationsThis study's findings provide suggestions for practitioners on the necessary skills and attributes of procurement negotiators that might be well considered when appointing members of negotiation teams for procurement deals.Originality/valueThis paper adds value to the existing literature on the necessary skills and attributes of members of negotiation teams for procurement undertakings in the public sector.


2018 ◽  
Vol 60 (2) ◽  
pp. 627-645 ◽  
Author(s):  
Musa Mbago ◽  
Joseph Mpeera Ntayi ◽  
Henry Mutebi

Purpose The purpose of the study is to examine the role of legitimacy in forming whistleblowing behavior in Ugandan procuring and disposing entities (PDEs). Design/methodology/approach This study has adopted both a quantitative and qualitative cross-sectional research design to collect data from a sample of 97 out of the population of 129 PDEs in Kampala, which are regulated by the Public Procurement and Disposal of Assets Authority. Findings This paper finds that improvement in the perception of public servants about the appropriateness of the Whistleblowers Act and its enforcers can increase on the reporting of unethical practices in public procurement. Research limitations/implications This study has used a cross-sectional survey data. The causal relationships between variables are possibly obscured; as data from all participants are collected at the same point of time, perceptions go on changing over time. Therefore, further studies should use a longitudinal approach. Second, there are no constructs for legitimacy in public procurement and those from law are domesticated. Practical implications There should be a promotion of legitimacy of the Whistleblowers Act and the enforcement agencies of the Act. The government should devise means for the public servants to have an obligation to obey the holders of authority, to trust and have confidence in them and to enforce the Whistleblowers Act in an ethical and normative framework. Originality/value This study reveals the whistleblowing intentions and behavior of public servants in PDEs. This study would help the Government of Uganda to make the Whistleblowing Act legitimate and its enforcers to increase on the reporting of unethical practices in public procurement.


2015 ◽  
Vol 28 (1) ◽  
pp. 78-97 ◽  
Author(s):  
Oluwatoyin Muse Johnson Popoola ◽  
Ayoib B Che-Ahmad ◽  
Rose Shamsiah Samsudin

Purpose – The paper aims to investigate Task Performance Fraud Risk Assessment (TPFRA) and Knowledge Requirement (KR) of the forensic accountant and auditor on Fraud-Related Problem Representation (FRPR) in the Nigerian public sector. Design/methodology/approach – The study used cross-sectional design and 400 survey questionnaires. The respondents are real professional people (auditors and forensic accountants in the Nigerian public sector) as true representatives to enhance the generalization of the outcomes. A total of 36 indicator items was measured on five-point Likert scale from 1 (strongly disagree) to 5 (strongly agree). Partial Least Square – Structural Equation Modelling 2.0 3M and IBM SPSS Statistics 20.0 were used as the primary statistical analysis tool for the study. Findings – The results of the present study confirm the positive relationship between KR on TPFRA, positive relationship of KR on FRPR and positive relationship of FRPR and TPFRA. Specifically, the results revealed that FRPR positively mediates the relationship between TPFRA and KR (forensic accountant and auditor) in the areas of fraud prevention, detection and response. Research limitations/implications – The first limitation deals with fraud and corrupt practices in a developing country, Nigeria. Examining the mediating influence of FRPR on KR and TPFRA in the public sector could be considered as sensitive and raise the issue of bias. The second limitation is the adoption of cross-sectional design in which data are collected at one point in time. Researchers are encouraged to use a longitudinal design to explore interactions between KR, FRPR and TPFRA. Practical implications – This empirical study has revealed the value of KR (forensic accountant and auditor) as a significant capability requirement in the workplace. In addition, it shows the importance of FRPR as an important mental state in decision-making or judgment and also the significance of FRPR as an important mediating variable on KR and TPFRA. Originality/value – No nation is immune to fraud, and loss due to fraud in the public sector is enormous and costly; the result of this research will improve the KR of auditors and forensic accountants in the areas of fraud detection, prevention and response. It will also contribute to the regulatory, legal and institutional frameworks in accounting and auditing systems in Nigeria and portend an increase in demand for forensic accountants.


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