Government Customers Research Articles

Optimal Active Debris Removal mission planning to inform policy decisions

Active Debris Removal (ADR) will be important to ensure the long-term sustainability of the space environment and to preserve benefits derived from space for those here on Earth. Effective ADR relies on optimal mission planning to select Space Objects (SOs) with the highest risk. The Advanced Market Commitment (AMC) concept is discussed as a method to increase the quantity of ADR over market equilibrium to promote space sustainability and accelerate the development of commercial ADR. The MIT Orbital Capacity Assessment Tool - Monte Carlo (MOCAT-MC) is utilized to obtain information about the probability of collision with other SOs and the number of debris generated over a long propagation and is combined with the criticality of spacecraft index, a static ranking index, to obtain the MIT Risk Index (MITRI), which quantifies the risk posed by an SO. A Genetic Algorithm (GA) is used with a binary chromosome encoding to perform evolutionary optimization and identify the optimal mission route by solving a mixed integer nonlinear problem while respecting spacecraft Δv and thrust constraints. MITRI is demonstrated as an efficacy metric to inform subsidy pricing for an AMC. Three potential AMC case studies are described: a government customer selecting objects for removal, a servicer selecting and optimizing an object set based on total environmental risk and subsidy, and a commercial operator paying for optimized remediation in their particular region of space. MITRI provides a mechanism to align private and public incentives for risk reduction.

Transaction-based government-business relationship via government customer

Transaction-based government-business relationship (GBR) can be established when the government serves as a company's customer. This study investigates the consequences and mechanisms of this type of GBR. We find that companies with government customers receive more subsidies, due to both signalling effect and rent-seeking effect. As China's anti-corruption campaign tries to disconnect relation-based GBR and eliminate rent-seeking, transaction-based GBR survives. In the post anti-corruption campaign period, the rent-seeking effect of the transaction-based GBR weakens, but the signalling effect remains, and the government subsidy efficiency improves. This study sheds lights on the economics of transaction-based GBR which is largely ignored in the existing literature and reveals the effects of the interactions of anti-corruption and business transactions.

On corporate total factor productivity: public procurement

PurposeThis study attempts to uncover the nonlinear relationship between public procurement and corporate total factor productivity (CTFP), and investigates the mediating roles of R&D investment and rent-seeking cost. Additionally, it conducts a heterogeneity analysis for firms with varying levels of political connections and corporate social responsibility (CSR).Design/methodology/approachEmploying Ordinary Least Squares (OLS) and Olley-Pakes (OP) methods, the authors gauge CTFP and manually identify government customers to quantify public procurement. Leveraging panel data from Chinese listed companies, this study explores the relationship between public procurement and CTFP.FindingsThis study unveils a U-shaped relationship between public procurement and CTFP, highlighting R&D investment and rent-seeking costs as potential mechanisms. Furthermore, it identifies heterogeneous effects among companies with varying levels of political connections and CSR on the relationship between public procurement and CTFP, including their mediating effects.Practical implicationsThis research enhances understanding of demand-side policies and provides crucial insights for the government to further improve public procurement policies.Originality/valueBy offering empirical evidence of how public procurement impacts CTFP, this paper enriches the literature on the behavioral repercussions of public procurement and the determinants of CTFP. It also overcomes the “black box” of the mechanism between public procurement and CTFP, based on the government’s dual role as a pathfinder and customer of enterprises. It broadens the application scenarios of institutional theory and principal-agent theory. Additionally, the heterogeneity analysis of firms with varying political connections and CSR extends the frontiers of related research.

Exploring the impact of customer concentration on stock price crash risk

This paper, rooted in agency theory, explores the intricate relationship between stock price crash risk and customer concentration within the context of Iran, a developing nation. Utilising innovative indicators to measure corporate and government customers, we address inconsistent findings in existing research and offer fresh insights into stock price crash risk dynamics. Focusing on 82 companies listed on the Tehran Stock Exchange from 2013 to 2020, our study employs a robust methodological framework, including panel data, multiple regression and three distinct metrics to measure customer concentration. Specifically, we introduce the proportion of significant customer sales, the Herfindahl-Hirschman Index, and a Ranking Index based on substantial customer sales. Our investigation reveals a noteworthy inverse relationship between the highest concentration level of corporate customer concentration, as measured by the Ranking Index, and stock price crash risk. Similarly, we establish an inverse association between the Ranking Index for government customer concentration and stock price crash risk. Moreover, institutional investors positively influence the correlation between corporate customer concentration and stock price crash risk but do not exert a discernible impact on the relationship between government customer concentration and stock price crash risk.

Impact of Government Outsourcing Contracts on High-Tech Vendors: An Empirical Study

ABSTRACT Outsourcing is an important strategic decision of high-tech firms. However, while the research has extensively studied the implications of outsourcing to high-tech clients, its impact on high-tech vendors remains underexplored. This study empirically estimates the impact of government outsourcing contracts on high-tech vendors. Employing the earnings-return analyses framework, we find that, for high-tech vendors engaged in government outsourcing contracts, the stock market places a higher value on each unit of unexpected earnings compared to other firms. Additionally, this impact becomes stronger for contracts with longer terms, for contracts outsourced by the U.S. government or by countries with better political and economical stability. We obtain causal evidence through difference-in-differences (DID) analyses of high-tech firms’ initiations of government contracts. Mechanism analyses uncover two primary drivers behind this impact: increased persistence of future earnings and improved alignment between accrual earnings and cash flows. Overall, our research indicates that when valuing high-tech firms, the stock market incorporates information from supply-chain networks, especially that related to government customers. Our results underscore the importance of obtaining government outsourcing contracts for high-tech firms’ managers. Becoming a vendor to the government helps a high-tech firm reduce the uncertainty faced by its outside investors, who in turn value the high-tech firm’s earnings to a greater extent.

Growing, learning, and connecting: Deciphering the complex relationship between government customer concentration and firm performance

AbstractThe interplay between a firm's customer portfolio and the firm's performance presents a theoretical conundrum that challenges traditional supply chains. In particular, the role of government customer concentration—how extensively a firm incorporates government entities as part of its customer base—emerges as a pivotal factor with the potential to both bolster and burden firm performance. Analyzing 3,643 firm‐year observations from the U.S. Federal Procurement Data System‐Next Generation, Compustat, and FactSet Revere reveals an inverse U‐shaped relationship between government customer concentration and firm performance. Excessive or insufficient government customer concentration adversely impacts performance, suggesting that a strategic balance is essential. Firm size, absorptive capacity, and network embeddedness are crucial in navigating this complex relationship, guiding a firm toward optimizing its government customer portfolio. This research advances the discourse on customer base management, underscoring the essential strategic considerations for firms interacting with government buyers.

Major government customers and organizational resilience during the COVID-19 pandemic: evidence from China

ABSTRACT The COVID-19 pandemic disrupted global supply chains and threatened firm survival. By analysing Chinese listed private firms from 2017 to 2022, we examine the impact of government customers on organizational resilience during this crisis and find that firms with major government customers demonstrate higher resilience than those without. Moreover, government customers support private suppliers by providing additional trade credit and reducing demand uncertainty. This support substitutes for specific internal resources in assisting private suppliers during the pandemic. Finally, the effect is amplified when government customers are affiliated with higher-level governments.

Public procurement and green innovation in Chinese enterprises: insights from econometric models and cross-case studies

ABSTRACT This study employs econometric models and cross-case analysis to investigate the impact and mechanism of public procurement (PP) on enterprises’ green innovation (EGI). Based on the manual identification of government customers, we conduct panel model estimations on Chinese listed company data from 2010 to 2021. Findings reveal that PP has a green innovation effect at the micro level. Moreover, expected market returns, corporate social responsibility (CSR), and financing constraints play a mediating role between PP and EGI. Additionally, we delved into the relationship between PP and EGI through a cross-case study. It not only validates the conclusions drawn from the econometric model but also summarises the heterogeneous characteristics of PP affecting EGI in practice. This study not only contributes to the existing literature on the outcomes of PP and factors impacting EGI but also furnishes additional empirical insights into the mechanisms through which PP enhances EGI.

The US government customer concentration and the firm innovation

PurposeThis study examines the impact of the US government customer concentration and product innovation in supplier firms. The US government customer concentration is defined as the proportion of sales made by a supplier firm to the US government as a major customer. To measure product innovation, the author uses two key metrics: the number of patents and the novelty of the patents. The results indicate that a supplier firm’s relationship with the US government, as measured by the tenure of the relationship, has a significant impact on product innovation. Furthermore, the author shows that changes in the composition of the US government, Senate can also affect the level of innovation in supplier firms.Design/methodology/approachThis study employs the Compustat’s Segment Customer database and the National Bureau of Economic Research (NBER) Patent Citation database to gather information regarding patents granted by the United States Patent and Trademark Office (USPTO). The author also incorporates data from US Congressional committees from the 96th to 115th Congresses to assess the effect of changes in seniority of US senators on influential committees on the firm’s innovation. For a robustness test, the author utilizes a propensity score matched analysis.FindingsThe author demonstrates that a firm’s dependence on the US government as a customer channel for an extended period negatively impacts the firm’s innovation efficiency, as measured by the number of patents, citations and novelty of the patents. In addition, the author provides evidence that changes in the seniority of US senators on influential committees have a significant impact on firms located in the same state as the new senior senators. These firms decrease innovative efforts due to the political connections, resulting in lower levels of innovation. These findings are robust after controlling the endogeneity issues. In conclusion, this study contributes to the existing literature by offering insight into the relationship between customer concentration and firm innovation. The findings highlight the importance of considering the relationship between firms and their customer base in determining innovation outcomes.Originality/valueThis study demonstrates that a heavy reliance on the US government as a customer channel has a detrimental impact on a firm’s innovation efficiency. Furthermore, the author analyzes the exogenous shock of changes in the seniority of US senators on the relationship between customer dependence and innovation. By utilizing a propensity matched sample, the author addresses endogeneity concerns and provides robust evidence for empirical findings. In conclusion, this study sheds light on the complex relationship between customer dependence and firm innovation, particularly in the context of the US government as a sales channel.

Використання інформаційних технологій в екології та процесах охорони навколишнього середовища

The article presents the results of a study of existing software products that are the most popular and in demand in the processes of ecology and environmental protection. An overview of automated design tools for the field of ecology in Ukraine is given. An overview of the market of automated design tools for the field of ecology was conducted, and their characteristics were given. An overview of integrated management systems in ecology and environmental protection is presented. The application of information technologies in the processes of ecology and environmental protection is that natural resources are now under significant pressure due to industrialization, expansion of urban areas and other human activities. This leads to pollution of air, water and soil, destruction of ecosystems, loss of biodiversity and other negative consequences for the environment. The use of information technology can be a key tool in combating these problems. In the field of the use of information technologies in ecology and environmental protection, the significant potential of these technologies for solving various environmental problems is confirmed. Many software products used in the field of ecology are associated with the use of GIS (geographic information systems) [1], the first period of their development began in the 1950s and 1970s with active topographic surveys [2], which in the later 1980s prompted the arrival of government customers to create commercial products using databases. Some key aspects that stand out from these studies include: 1. Monitoring of the state of the environment: Application of modern information technologies: satellite imaging; collection of environmental parameters; registration sensors; the accumulation of observation data and their analysis allows to get an idea, mostly expressed in quantitative estimates, about the state of air, water and soil pollution, as well as about changes or their trends in landscapes and biocenosis. This allows you to effectively identify problem areas and respond to environmental threats in a timely manner. 2. Forecasting environmental events: The use of analytical methods and algorithms of artificial intelligence makes it possible to predict the development of environmental crises, such as natural disasters, climate change, and the destruction of ecosystems. It helps to develop strategies to prevent and minimize negative impact on the environment. 3. Resource and waste management: Information technology is used to optimize the use of natural resources, as well as for efficient waste management and renewable energy sources. This helps to conserve resources and reduce the negative impact on the environment. 4. Public participation and education: Information technologies allow raising public awareness of environmental problems, facilitating the dissemination of information and stimulating active public participation in environmental protection programs. 5. Innovative solutions: The latest technologies, such as blockchain, the Internet of Things (IoT), as well as developments in the field of bioinformatics and nanotechnology, open up new opportunities for solving complex environmental problems and ensuring sustainable development.

Kualitas Pelayanan Publik Yang Ada di Kota Batam

Research on public services in Batam City has been carried out with various focuses and approaches. Research conducted at the Batam City Public Service Mall aims to analyze the level of satisfaction with public services with changes to the business licensing regulatory system. The research results show that the majority of people express satisfaction with the services provided by the Batam City Public Service Mall, however there are improvements that need to be made, especially regarding understanding the procedures for processing business permits. Apart from that, other research highlights the influence of service quality and facilities on Batam City Government customer satisfaction at Public Service Malls. The results of this research provide an understanding of the importance of service quality and facilities in influencing customer satisfaction Apart from that, the implementation of public services during the Covid-19 pandemic in Batam City is also the focus of research. This research highlights the challenges in running public services according to the minimum standards that apply during the pandemic. The research results show that the implementation of public services during the Covid-19 pandemic is still not running effectively and efficiently From these various studies, it can be concluded that public services in Batam City are an important topic to evaluate and improve, especially in terms of customer satisfaction, the influence of service quality and facilities, as well as challenges in providing public services during pandemic conditions.

Economic policy uncertainty and cost rigidity: the moderating effects of government contracts and political connections

PurposeThis study examines the relationship between economic policy uncertainty (EPU) and managers' ex ante strategic choice on firms’ fixed and variable costs structure, i.e. cost rigidity and the moderating effect of government contracts and political connections.Design/methodology/approachUsing a sample of 4,162 US firms during 2003–2019 and EPU measure from Baker et al. (2016), the authors examine the association between EPU and cost rigidity using multivariate regression analysis. The authors also examine the moderating effects of government customers and political connections using the subsampling method.FindingsThis study finds that increases in EPU leads to higher cost rigidity, suggesting that managers tend to look ahead and make an ex ante commitment to invest more in fixed costs to avoid congestion costs in anticipation of future product demand during EPU. The study also finds that the presence of government customers and political connections moderates the need for adopting greater cost rigidity.Research limitations/implicationsThis study measures firms' cost rigidity based on archival data. Future studies could utilize managers' cost structure choices using firms' internal management cost structure forecasts data to measure cost rigidity to examine the relationship between cost rigidity and EPU.Practical implicationsThis study demonstrates that managers tend to make a proactive commitment to invest in fixed inputs when facing demand uncertainty from EPU to avoid congestion costs. This study also highlights the value of having government contracts and political connections by demonstrating that managers are less concerned about the congestion costs, hence weakening the impact of EPU on cost rigidity when they have government as major customers and/or political connections.Originality/valueThis study extends the management accounting literature by documenting that cost rigidity is related to EPU and that the relationship between cost rigidity and EPU also depends on whether the firm has government as major customers and/or political connections or not.

The impact of business-to-government relationship emphasis on green innovation: An empirical analysis

The purpose of this study is to explore how and under what conditions business-to-government (B2G) relationship emphasis (i.e., firms’ dependence on government customers for revenue) affects firm green innovation. Using a sample of publicly listed Chinese firms that received at least one government contract during 2007–2020, we find a U-shaped relationship between B2G relationship emphasis and firm green innovation. Furthermore, our results show that a focus on value appropriation rather than value creation positively moderates the relationship between B2G relationship emphasis and firm green innovation. We also find that increased operational capability can steepen the relationship between B2G relationship emphasis and firm green innovation. This is the first attempt to explore government client role in firm green innovation, and its findings provide recommendations for integrating both external influence and internal determinism on green innovation.

BIM technologies in engineering network design

There are several definitions of BIM available from Wikipedia to the International Organization for Standardization (ISO) that more or less consistently describe BIM as follows: a process or method of managing information about objects and projects to coordinate inputs and outputs using shared digital representations of physical and functional characteristics of any built object, including buildings, bridges, roads, industrial facilities. Despite the common definition, we often observe that BIM has different meanings to different people. There is no single international standard or definition of the activities that must be performed within a project to be considered a BIM project. Very often we come across the idea that BIM is a software, a 3D model or a system. This inconsistency creates confusion and disagreement between government customers and private sector providers, creating barriers to successful implementation. Experience from the EUBIMTG suggests that a clear and specific definition of measures and characteristics, combined with a phased implementation of the strategy in a realistic time frame, has proven to be the most promising approach to the successful transformation of the construction sector. The following "EU Common Performance Level" characteristics describe the activities that must be consistently performed within a project to be considered an EU BIM project. They should be considered as minimum criteria for the procurement and implementation of construction projects consistently throughout Europe. The implementation of BIM design in the process of higher education in Ukraine is just beginning, especially in the area of designing engineering networks. If BIM design courses for future architects are the norm rather than the exception, it is difficult to find suitable specialists, let alone teachers, in the area of designing water supply networks.

The 2022 energy crisis: Fuel poverty and the impact of policy interventions in Australia's National Electricity Market

The war in Ukraine and associated 2022 energy crisis had far-reaching effects, with seaborne prices for coal and gas reaching multiples of their historic averages. While Europe was the epicentre, countries as far away as Australia were impacted. Governments across multiple jurisdictions have since orchestrated very material energy subsidies for households to reduce the adverse effects, with fiscal estimates across EU member states ranging from 0.5 to 7% of GDP. As a major energy exporter, the Australian Government took a different policy pathway by targeting the source of electricity tariff increases, viz. imposing price caps of $125/t and $12/GJ for coal and gas, respectively. Some state governments in Australia also revised their household energy hardship policies. This article analyses the level of fuel poverty before- and after- the array of Commonwealth and State policy interventions. Commonwealth policy had the effect of moderating forecast electricity tariff increases from 35% to 16.5%, which benefits all customers. However, State Government customer hardship policy remains vitally important and makes the dominant contribution in reducing fuel poverty.

Government as major customer: The effects of government procurement on corporate environmental, social, and governance performance

This study examines how the government's participation in the product market as a customer affects supplier firms’ environmental, social, and governance (ESG) practices. Using a sample of Chinese listed firms from 2010 to 2020, we find that firms with major government customers exhibit higher ESG performance than those without them. Further analysis shows that female managers, institutional ownership, media coverage, and public attention enhance the positive relationship between major government customers and ESG performance. Overall, the findings suggest that as an important public policy, government procurement can significantly affect stakeholders’ value by improving supplier firms’ ESG performance.

ОЦЕНКА ЭФФЕКТИВНОСТИ ГОСУДАРСТВЕННЫХ ЗАКУПОК В РОССИИ

The article analyzes the approaches of the scientific community and federal executive authorities to assessing the effectiveness of public procurement, characterizes existing assessment models, identifies similarities and differences between the theoretical proposals of scientists and the practical implementation of federal departments, and identifies their shortcomings. The author has proposed a new, unified system for assessing public procurement for all government customers, based on a block structure of indicators.

STRATEGIC PRIORITIES FOR DEVELOPING THE PUBLIC PROCUREMENT SYSTEM IN CONDITIONS OF DIGITAL ECONOMY

The work addresses an urgent scientific task of increasing the efficiency of public procurement management in the context of information asymmetry via the use of modern mechanisms and digital technologies. The subject of the work was formed by the study of the negative effects of information asymmetry on the stakeholders at the stage of selecting a supplier, as well as qualitative aspects of planning, budgeting and preparation of purchases by government customers. The theoretical basis is the theory of markets with asymmetric information, the theory of contracts, as well as the theory and practice of the process approach to management regarded in many significant world economic studies. The relevance of the work is justified by the expansion in the state sector, where procurement efficiency becomes of particular importance, and the constant displacement of high-quality goods, works and services from the market and their replacement with low-quality ones (the phenomenon of negative selection) becomes an obvious risk. In the light of the tasks facing the state, the author views the demand for development of a conceptual model and methodology for using digital mechanisms and modern information technologies both for microeconomic regulation and assistance to quality suppliers, and for increasing the efficiency of government bodies, state corporations, companies and enterprises.

Influential Government Customers and Environmentally Responsible Firms

Influential Government Customers and Environmentally Responsible Firms

Audit Risk and the Benefits of Employing Specialist Auditors: Evidence from Firms with Major Government Customers

Audit Risk and the Benefits of Employing Specialist Auditors: Evidence from Firms with Major Government Customers