While operational performance is important for a company's competitiveness and profitability, this study claims that procurement may be required to drive operational performance. This study aims to focus on how procurement practices is related to operational performance among selected manufacturing firms.
The model was tested on a sample of 329 manufacturing firms in clothing and textiles, chemicals and plastics, food and beverages processing, wood processing, metal processing and pharmaceutical manufacturing industries in a developing economy.
The results indicate that firms with higher and optimal level of procurement practices achieve higher levels of operational performance. Regardless of the H1 rationale, this study suggests that increasing procurement techniques has a limit in terms of improving operational performance. This study establishes that extreme level of procurement practices is associated with decreasing operational performance.
This study calls attention to how managers can guide organizations in refining their procurement strategies and practices; there is the need to strive to strike a balance between diversification and efficiency in procurement.
Manufacturing firms are often integral parts of local communities. The decisions they make regarding procurement practices can impact the economic health of these communities. Striking a balance between diversification and efficiency can contribute to sustainable business practices that benefit both the company and the local community.
As the main contribution, this study brings the additional perspective that extreme level of procurement practices is associated with decreasing operational performance.
With increasing concerns regarding the performance of public procurement, especially concerning timely delivery, this study aims to investigate the predictive role of sustainable supplier selection (SSS) in enhancing lead-time performance in public procurement, while also examining the moderating effect of relational capability.
The study collected primary data from 179 accredited public organizations in Tanzania through structured questionnaires and used partial least squares structural equation modeling for data analysis.
The results reveal that SSS and relational capability influence lead-time performance in public procurement. Regarding the moderating effect of relational capability, the study establishes that relational capability strengthens the influence of SSS on lead-time performance. Therefore, based on the collected data from surveyed public organizations, relational capability positively moderates the relationship between SSS and lead-time performance in public procurement.
The study offer valuable implications for public procurement practitioners, academics and other stakeholders. Public organizations should consider contemplate integrating sustainability aspects into supplier selection processes. Furthermore, the study contributes to advancing efforts toward achieving sustainable development goals (i.e. SDG12) within Tanzania, particularly by advocating for sustainable public procurement practices aligned with national policies and priorities.
This study not only enhances the understanding of public procurement performance by investigating lead-time improvement, incorporating considerations of SSS and relational capability, but it also offers empirical evidence of the moderating role of relational capability within the unexplored Tanzanian context.
The South African Government announced the black economic empowerment (BEE) legislation in 2003 in the public procurement systems. The legislation was deemed a catalyst for the emancipation of the previously disadvantaged citizens due to the apartheid government policies that secluded them from economic activities. This study aims to explore the challenges of black construction professionals with the BEE as a procurement policy.
This study adopted a qualitative research approach. Thirty-five black construction professionals were contacted for interviews, of which 21 responded. Due to the COVID-19 restriction, participants were interviewed using telephone interview techniques. The information received was analysed using the thematic contents analysis method.
The findings revealed the challenges confronting black construction professionals regarding the BEE policy as corrupt practices (leading to the award of contracts to unqualified people), fronting of contractors and individuals for unqualified firms, preventing the participation of experienced and foreign firms, poor policy implementation with no monitoring mechanism and loss of tender due to strict requirements.
Urgent attention is needed to review the BEE policy implementation process by the South African government to address the challenges enumerated by the policy beneficiaries to ensure the achievement of the policy objectives.
This study has identified the challenges of the BEE policy; thus, the government can institute measures to address the hindrances thwarting the beneficiaries from realising the policy objectives.
Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts is limited. This paper aims to explain and conceptualise recent Romanian experience with developing bespoke competency frameworks at national level for public procurement that reflect the features of the Romanian public procurement system. The approach used could guide in broad-brush, mutatis mutandis, other (national) public procurement systems with comparable features, mainly those seeking a shift from a rather administrative function of public procurement towards a strategic function.
This case study reflects on the methodology used for analysing the Romanian public procurement environment in EU context to develop bespoke professionalisation instruments, and on ways to integrate competency management approaches in Romanian public procurement culture. That methodological mix has been mainly qualitative and constructionist, within an applied research approach. It combined desk research with empirical research and included legal research in this context.
A principled, methodological and pragmatic approach tailored to the procurement environment in question is essential for developing competency frameworks capable to resonate to and address the specific practical needs of that procurement system.
Competency frameworks can uphold societal objectives through public procurement.
Using valuable insights into the development of the Romanian public procurement competency frameworks, the paper provides a conceptual framework for instilling competency management approaches to public procurement professional development where the latter is governed by a rather distinct, public administration, paradigm. This conceptual framework can guide other public procurement systems and stimulate further research.
Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts is limited. This paper aims to explain and conceptualise recent Romanian experience with developing bespoke competency frameworks at national level for public procurement that reflect the features of the Romanian public procurement system. The approach used could guide in broad-brush, mutatis mutandis, other (national) public procurement systems with comparable features, mainly those seeking a shift from a rather administrative function of public procurement towards a strategic function.
This case study reflects on the methodology used for analysing the Romanian public procurement environment in EU context to develop bespoke professionalisation instruments, and on ways to integrate competency management approaches in Romanian public procurement culture. That methodological mix has been mainly qualitative and constructionist, within an applied research approach. It combined desk research with empirical research and included legal research in this context.
A principled, methodological and pragmatic approach tailored to the procurement environment in question is essential for developing competency frameworks capable to resonate to and address the specific practical needs of that procurement system.
Competency frameworks can uphold societal objectives through public procurement.
Using valuable insights into the development of the Romanian public procurement competency frameworks, the paper provides a conceptual framework for instilling competency management approaches to public procurement professional development where the latter is governed by a rather distinct, public administration, paradigm. This conceptual framework can guide other public procurement systems and stimulate further research.
An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions.
Drawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets.
The PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing.
Danish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices.
The PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.
The objectives of this study are twofold. Firstly, this study aims to examine the challenges of green public procurement (GPP) involvement among small- and medium-sized enterprises (SMEs) government suppliers. Secondly, it investigates the differences in the perceived challenges between the small- and medium-sized groups of companies.
The study draws on the quantitative method. The questionnaire was distributed to SMEs that supply green goods or services to the government and which are listed in the MyHijau directory. Using convenience sampling, a total of 394 questionnaires were distributed and 126 usable questionnaires were received, representing a response rate of 31.98%. A descriptive analysis of the mean score, standard deviation and mean score ranking was used to analyse the overall results. The t-test analysis was carried out to examine the differences between the small- and medium-sized groups of companies.
All five categories of the barriers, i.e. financial, legal, people, knowledge and organizational challenges, are perceived as the important challenges for SMEs’ involvement in GPP. Of the five categories, “having lack of knowledgeable staff on GPP” under the category of “people” challenge is ranked as the most major barrier. In relation to the differences between the two groups of enterprises (small- and medium-sized), medium enterprises are more affected by two items under the “organization” challenge, i.e. “The company has not targeted suppliers that promote environmentally-friendly products/services” and “The company has not established a clear objective on purchase of green products and services”, as compared to the small-sized enterprises through their GPP involvement.
By understanding the difficulties faced by SMEs in engaging with GPP, various practical measures can be formulated to support the SME businesses in mitigating the challenges faced for their involvement with GPP, which subsequently will lead to the country’s target to reach the sustainable development goals.
This study extends empirical evidence on barriers or challenges that may hinder the involvement in government green procurement, with a specific focus on SME government suppliers.
This study aims to assess the awareness and knowledge level of procurement officers (POs) in Ghanaian tertiary educational institutions regarding sustainability in general and specifically on environmental sustainability in the Public Procurement Act 2003 (Act 663) as amended.
Through purposive sampling technique and face-to-face interviews using semi-structured open-ended questions, qualitative data was collected from 19 POs who are well vested in the procurement profession and willingly agreed to partake in the research. The qualitative data were analyzed using content analysis technique to help organize and elicit meaning from the data collected and to draw realistic conclusions from it.
The results showed that most POs were aware of the Public Procurement Act 2003 (Act 663) as amended, primarily through seminars and workshops organized by the Public Procurement Authority. The interviewees demonstrated a good understanding of sustainable procurement, considering its social, environmental and economic aspects. However, one respondent primarily associated sustainability with only environmental issues. The POs were, however, of the view that the Amended Act 914 (2016) does not give detailed highlights on environmental sustainability, making implementation very difficult, especially regarding the procurement of goods. Overall, the findings indicate a positive level of environmental sustainability awareness and knowledge among the interviewed POs regarding the Public Procurement Act 2003 (Act 663) as amended.
The findings from the study could be used by policymakers to strategize educational campaigns by using the POs’ knowledge and awareness to the implementers of Act 663 (2003) as amended to effectively ensure environmental sustainability in procurement practices. The findings from the study have also contributed to the literature on procurement policy by drawing the attention of policy formulators to give equal attention to all the sustainability pillars, i.e. social, economic and environmental. This would consequently help the implementers to contribute to achieving sustainable development.
This study is one of the few empirical qualitative types of research seeking the views of POs in tertiary educational institutions in Ghana on sustainability and environmental sustainability as enshrined in the Public Procurement Act 2003 (Act 663) as amended. The findings give positive feedback to policymakers on the knowledge and awareness level of the POs on environmental sustainability and highlight the importance of awareness programmes and educational initiatives by the Public Procurement Authority and other stakeholders to ensure compliance with the Act.
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.
The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.
Dynamic capabilities in public procurement are necessary to improve public procurement.
This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.
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