Small and medium enterprises and obstacles to public procurement: lessons learned for Balkans

Author(s):  
Edo Rajh ◽  
Jelena Budak ◽  
Suncana Slijepcevic
Author(s):  
Jirí Novosák ◽  
Oldrich Hájek ◽  
Jirí Machu

Relations between public procurement, regional development, and e-procurement are discussed in this chapter. First, main themes of the debate are reviewed. Subsequently, some relations between public procurement, regional development, and e-procurement are discussed. The Czech Republic is used as a case study in this regard. The authors’ findings confirm the potential of public procurement to stimulate development of Czech regions. Spatially, public procurement may not be regarded as a suitable tool for reduction of regional disparities. However, there seems to be an important impact of public procurement on the development of local small and medium enterprises. In addition, the authors’ findings point at some links between public procurement and the concepts of sustainable development and competitiveness. Nevertheless, the dominant position of price as evaluation criterion indicates that the linkages are rather weak. Finally, the increasing interest of the Czech Republic in e-procurement was documented.


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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shreeranga Bhat ◽  
E.V. Gijo ◽  
Anil Melwyn Rego ◽  
Vinayambika S. Bhat

PurposeThe aim of the article is to ascertain the challenges, lessons learned and managerial implications in the deployment of Lean Six Sigma (LSS) competitiveness to micro, small and medium Enterprises (MSME) in India and to establish doctrines to strengthen the initiatives of the government.Design/methodology/approachThe research adopts the Action Research methodology to develop a case study, which is carried out in the printing industry in a Tier III city using the LSS DMAIC (Define-Measure-Analyze-Improve-Control) approach. It utilizes LSS tools to deploy the strategy and to unearth the challenges and success factors in improving the printing process of a specific batch of a product.FindingsThe root cause for the critical to quality (CTQ) characteristic, turn-around-time (TAT) is determined and the solutions are deployed through the scientifically proven data-based approach. As a result of this study, the TAT reduced from an average of 1541.2–1303.36 min, which in turn, improved the sigma level from 0.55 to 2.96, a noteworthy triumph for this MSME. The company realizes an annual savings of USD 12,000 per year due to the success of this project. Top Management Leadership, Data-Based Validation, Technical Know-how and Industrial Engineering Knowledge Base are identified as critical success factors (CSFs), while profitability and on-time delivery are the key performance indicators (KPIs) for the MSME. Eventually, the lessons learned and implications indicate that LSS competitiveness can be treated as quality management standards (QMS) and quality tools and techniques (QTT) to ensure competitive advantage, sustainable green practices and growth.Research limitations/implicationsEven though the findings and recommendations of this research are based on a single case study, it is worth noting that the case study is executed in a Tier III city along with novice users of LSS tools and techniques. This indicates the applicability of LSS in MSME and thus, the modality adopted can be further refined to suit the socio-cultural aspects of India.Originality/valueThis article illustrates the deployment of LSS from the perspective of novice users, to assist MSME and policymakers to reinforce competitiveness through LSS. Moreover, the government can initiate a scheme in line with LSS competitiveness to complement the existing schemes based on the findings of the case study.


2015 ◽  
Vol 21 (4) ◽  
pp. 947-952 ◽  
Author(s):  
Hasnah Haron ◽  
Ishak Ismail ◽  
Sobei Oda ◽  
Azah Abdul Jalil ◽  
Nurul Khair Ishak

Japan is a high income economy country and scored well in terms of CPI index. Since Malaysia’s intention is to move towards a high income economy there is much to learn from SMEs in Japan. A study was conducted on 17 SMEs in Japan and data collection includes survey and interviews. Amongst lessons learned are that SMEs in Japan place a great respect on seniority and they treat their business as one family. SMEs in Japan also place high importance on customer satisfaction, they do not believe in “quick wins” and will ensure that expansion of business is made progressively. They also view preserving traditional culture as one of their responsibility. One of the challenges they faced are the declining sales due to the lesser number of tourists in Japan and declining demand of traditional products. Success of SMEs in Japan is partly because of the ability of the government in Japan to “make the blue collars’ conditions equal to the white collars,” especially involving the expanded application of monthly-payment, life-time employment, seniority-based payment and promotion system in SMEs similar to large corporation.


2015 ◽  
Vol 15 (4) ◽  
pp. 476-513 ◽  
Author(s):  
Lobna Abdellatif ◽  
Mohamed Zaky

The current paper explores the effect of private market characteristics on the access of small and medium enterprises (SMEs) to public markets in some sectors. Using survey data of small and medium enterprises in the pharmaceutical sector in Egypt, we confirmed this effect. We found that regulations of drugs pricing and registration in the private market constrained the capacity of those firms to compete in the public markets. However, some other factors play it the other way. The policy implications of these findings indicate that governments need to account for private markets characteristics when designing support packages for smaller enterprises in public procurement markets.


2017 ◽  
Vol 142 ◽  
pp. 1650-1660 ◽  
Author(s):  
Johannes Fresner ◽  
Fabio Morea ◽  
Christina Krenn ◽  
Juan Aranda Uson ◽  
Fabio Tomasi

2021 ◽  
Vol 20 (3) ◽  
pp. 410-431
Author(s):  
Dmitriy V. Kashin ◽  

The study assesses factors influencing public bodies’decisions to conduct purchases with small and medium enterprises (SMEs). Mechanisms supporting SMEs are enshrined in the laws governing the system of state and state-corporate procurement in Russia and are mandatory for Russian contracting authorities. The inclusion of these mechanisms in the public procurement legislation implies their direct (explicit) impact, which applies equally to all regulated organizations. However, despite some similarities in the mechanisms for supporting SMEs in the laws on public procurement (both laws dictate to conduct set-aside procedures for SMEs), the frequency of procurement with SMEs participation differs between 44 FL and 223 FL. The study revealed that the choice of contracting authorities is influenced by the type of law, the position in the public power hierarchy, and the form of ownership of the organisation. The decision to purchase from SMEs is also related to the subject of the procurement and the method of identifying a supplier. The results of the study demonstrate heterogeneity in the behaviour of contracting authorities when purchasing from SMEs and explain the reasons of heterogeneity by differences in the regulatory pressure.


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