Procurement Outcomes Research Articles

Influence of Supplier Responsiveness on Procurement Performance of Parastatals in Mombasa County, Kenya

The purpose of this study was to establish how supplier responsiveness influences procurement performance within Mombasa County. The study adopted descriptive research study design. The research was grounded on the Kaizen Theory. The target population comprised of 308 procurement staff members, including both managerial and non-managerial roles, across parastatals in Mombasa County. A sample size of 174 was determined using the Yamane method and respondent were selected using Stratified random sampling technique to ensure equitable representation and eliminate bias. Data analysis was conducted utilizing the statistical software SPSS version 28. Regression analysis was used to ascertain the predictive relationship between dependent and independent variables, with results being presented in tabular form alongside percentages. The findings showed that there was a strong positive correlation between supplier responsiveness and procurement performance(B1=0.307, t=2.354 & p=0.022<0.05), highlighting the critical role of suppliers' ability to swiftly adapt to changing environments and efficiently address challenges in determining overall procurement outcomes. The small standard deviation among participants underscores the consensus on the importance of supplier responsiveness in expediting the procurement process. Notably, the research indicates a significant boost in procurement performance with each unit increase in supplier responsiveness, emphasizing the pivotal role of supplier sensitivity in enhancing procurement success within Mombasa County's state corporations. The study recommends that managers of parastatals should prioritize fostering strong and collaborative relationships with suppliers to enhance responsiveness. Additionally, adoption of electronic procurement solutions can expedite the procurement process and enable quicker responses to market changes.

О МОДЕЛИРОВАНИИ ЗАКУПКИ ОБРАЗОВАТЕЛЬНОГО ОБОРУДОВАНИЯ И БЮДЖЕТНОЙ КОНКУРЕНЦИИ ШКОЛ

Educational establishments regularly acquire administrative and pedagogical equipment to ensure a quality educational process. In the context of limited budgets and competition among institutions, optimal resource allocation and efficient procurement management become crucial. This study builds upon approaches by applying game theory to model procurement in the educational sector. The first part extends single-stage auction models of procurement to account for heterogeneous participant information. Acquired knowledge enables participants to reduce uncertainty in procurement outcomes and outmaneuver stronger market participants with more favorable offers. Specifically, an optimal strategy is identified for the scenario where only one player possesses information, along with a quantitative order of neutralizing the undesired advantage through additional player inclusion. The second part of the study examines mechanisms of long-term budgetary competition among schools. Well-known Rubinstein, Baron, and Ferejohn game theory models are employed to investigate this setup. A substantive analogy between competition and multi-stage negotiations is drawn, and key parameters determining competitive outcomes are delineated. The purpose of the work is to evaluate the applicability of game theory models. Materials and methods. For modeling, the mathematical apparatus of dynamic games is used, including methods of probabilistic modeling, game theory and optimization. The determining criterion for the decision of the players is the greatest utility, calculated solely based on available information. Results of the modeling are performed analytically through optimization, considering the discounting of the utility function over time. Results. Novelty of work is coupled with domain interpretation of game theory models. Modeling allows predicting agents behavior under the regulation of the procurement market and the definition of their budgeting. Conclusion. The analysis of models of game theory in relation to the field of education is accomplished. It is shown that the degree of awareness of the players about the value functions can significantly influence their decisions and the results of procurement.

Certification Training and Liver Transplant Experience Improves Liver Procurement Outcomes: The Dutch Approach.

This study investigates the impact of certification training and liver transplant experience on procurement outcomes of deceased donor liver procurement in the Netherlands. Three groups (trainee, certified, and master) were formed, with further subdivision based on liver transplant experience. Three key outcomes-surgical injury, graft discard after injury, and donor hepatectomy duration-were analyzed. There were no significant differences in surgical graft injury in the three groups (trainee, 16.9%; certified, 14.8%; master, 18.2%; P = 0.357; 2011 to 2018). The only predictor for surgical graft injury was donation after circulatory death (odds ratio [OR], 1.49; 95% confidence interval [CI], 1.10-2.02). Of the three groups, the master group had the highest discard rate after surgical injury (trainee, 0%; certified, 1.3%; master, 2.8%; P = 0.013). Master group without liver transplant experience (OR, 3.16; 95% CI, 1.21-8.27) and male donor sex (OR, 3.58; 95% CI, 1.32-9.73) were independent risk factors for discarding livers after surgical injury. Independent predictors for shorter hepatectomy durations included donors older than 50 years (coefficient [Coeff], -7.04; 95% CI, -8.03 to -3.29; P < 0.001), and master group (Coeff, -9.84; 95% CI, -14.37 to -5.31; P < 0.001) and certified group with liver transplant experience (Coeff, -6.54; 95% CI, -10.83 to -2.26; P = 0.003). On the other hand, master group without liver transplant experience (Coeff, 5.00; 95% CI, 1.03-8.96; P = 0.014) and donation after circulatory death (Coeff, 10.81; 95% CI, 8.32-13.3; P < 0.001) were associated with longer hepatectomy durations. Training and certification in abdominal organ procurement surgery were associated with a reduced discard rate for surgical injured livers and shorter hepatectomy times. The contrast between master group with and without liver transplant experience underscores the need for specialized training in this field.

Effect of clinical engagement on value, standardisation, decision-making and savings in NHS product procurement.

UK healthcare expenditure is now £193.8 billion a year. The procurement function is seen as central to driving efficiencies within the NHS. This comes with an increasing onus on clinicians, including nurses and allied health professionals, to accept procurement outcomes to realise efficiency savings, with or without prior engagement. This empirical study seeks to examine whether clinical engagement in the procurement of healthcare products in the NHS is necessary to achieve value, savings and standardisation; it will thereby address a gap in the research. A multi-method qualitative case study design was used, which included a survey and eight semi-structured interviews. Results identified three factors that influence the achievement of value, savings and standardisation around clinical engagement: micro-level processes for clinical engagement; clinical stakeholders and clinical procurement professionals as experts at the centre of procurement activity; and clinical value in standardisation. A shift away from standardisation to resilience was identified, resulting from current market supply pressures. This research brings empirically derived findings to address gaps in research, supports the benefit of clinical engagement through specific forums for collaboration at a trust level and provides a clinical/expert impact/preference matrix as a resource for procurement professionals to facilitate clinical engagement.

Beyond Panacea: Deconstructing the Multifaceted Relationship between Procurement Accountability and Quality in the County Government of Kitui, Kenya

Procurement and supply chain processes in public administration are often scrutinized for their susceptibility to inefficiency and corruption. This research investigated the influence of different accountability mechanisms on the quality of procurement and supply chain management within the Kitui County government in Kenya. Moving beyond a simplistic notion of accountability as mere responsibility, the study adopted a nuanced approach, drawing upon agency theory and institutional theory to analyse the interplay between formal rules, oversight bodies, and stakeholder engagement in shaping procurement outcomes. It examined how these mechanisms influence key quality dimensions like cost-effectiveness, transparency, and value for money. A mixed-method was employed, utilizing both quantitative surveys within the Kitui County procurement department and qualitative interviews with key stakeholders. The coefficients of correlation and the P-values were as follows: Accountability (Beta= 0.774, P-value= 0.000&lt;0.05) thus indicating a statistical significance, 1 point increase in accountability increases quality of procurement by 0.774 hence indicating a very strong positive influence. This research serves as a springboard for further investigation into the nuanced dynamics of accountability within public procurement and supply chain management, ultimately aiming to improve quality and deliver greater value for public institutions and their stakeholders

Discretion and public procurement outcomes in Europe*

Public procurement regulations aim to ensure the state minimizes contract award prices by specifying the processes to be used in issuing calls for tenders and award of contracts. Cost minimization goals may be complemented by ancillary objectives such as supporting small firms or disadvantaged groups. Recent theory suggests procurement regulations and practices constraining the ability to exercise discretion in awarding contracts may increase average procurement costs. Using detailed data on procurement awards in 33 European countries, we find that restrictions on exercise of discretion are associated with higher average contract prices, and that increases in prices are greater in countries with above average government effectiveness. We also show that realizing price-reducing benefits from exercising greater discretion, where permitted by law, reduces the probability small firms win contracts and continue to do so. Our findings point to a tradeoff between the potential to lower prices by exercising discretion and policies that aim to increase the likelihood SMEs are awarded contracts.

Past Performance and Procurement Outcomes

Past Performance and Procurement Outcomes

Organizational Factors Influencing Leadership Styles and Procurement Outcomes

The purpose of this article is to contribute to the development of successful procurement leadership practiceswhile also providing practical recommendations for procurement managers and companies wishing to enhance theirprocurement outcomes.

Effects of bid protests against government agencies on firm performance: Role of interorganisational relationship

Government contracting officers (purchasing agents) are imperfect actors who may distort the procurement processes due to their individual preferences or biases. As a means of adjudicating this issue, firms may file legal protests against them. While previous studies analysed the effects of monitoring behaviour on procurement outcomes, the underlying mechanisms remain obscure. We overcome this limitation by leveraging interorganisational relationship mechanisms to explore how protests against government agencies affect firm performance. Using data from 2001 to 2019 encompassing bid protests and firm government procurement activities, we conduct panel regressions with firm and time fixed-effects and find that sustained protests improve firm performance. This effect is more pronounced when government agencies’ business becomes more dependent on protesting firms. In contrast, non-sustained protests had no effect on firm performance. Our findings highlight different government agencies’ reciprocating responses to firm protests and how they influence firm performance.

Examining the Influence of E-Payment System on LGAs’ Public Procurement Performance: A Case of Kasulu District Council, Kigoma Tanzania

Purpose: The study was conducted to examine the influence of e-Payment system on the performance of public procurement of Kasulu District.&#x0D; Methodology: The study employed a positivism philosophy and implemented a cross-sectional research design to answer research objectives. Data were collected from employees of Kasulu district council and suppliers that located in Kasulu district, Data were collected from 395 responded to questionnaires. Simple random sampling technique used to select sample. Data were analyzed using Statistical Package for Social Science (SPSS) Version 27; where Bivariate Regression analysis, descriptive analysis were conducted to answer the research objectives.&#x0D; Findings: The study revealed that the e-Payment System significantly and positively impacts public procurement performance. An increase in the execution of e-Payment System elements leads to improvements in various procurement aspects, including timely allocation of resources, increased value for money, better service quality, reduced user complaints, and improved communication.&#x0D; Unique Contribution to Theory, Practice and Policy: The study concluded by highlighting the importance of investing in and leveraging e-Payment Systems to optimize public procurement outcomes. The study recommended that the government prioritize and facilitate an enhanced technological environment to improve the effectiveness of public procurement within Local Government Authorities (LGAs).

Enhancing procurement efficiency through strategic budgeting: A case study of Benue State Ministries, Departments, and Agencies (MDAs)

This report explores the significance of procurement planning and budgeting for the Government of Benue State. It highlights the various types of budgets applicable to the procurement of goods, works, and services and emphasizes their role in efficient resource allocation, financial control, transparency, accountability, and risk mitigation. The report outlines the budgeting process for procurements, covering pre-budgeting, budget formulation, budget implementation, and post-budgeting phases. Drawing from successful case studies and best practices from other states and countries, it provides key takeaways and lessons for effective procurement budgeting in Benue State. The report calls for the adoption of integrated e-Procurement systems, strategic budgeting frameworks, and stakeholder engagement to optimize procurement outcomes. Recommendations include centralizing procurement functions, leveraging technology, and fostering a culture of transparency, data-driven decision-making, and continuous improvement. With these measures, Benue State's procurement processes can become more resilient, responsive, and better aligned with strategic goals, ultimately leading to enhanced service delivery for its citizens.

Addressing Barriers to Social Procurement Implementation in the Construction and Transportation Industries: An Ecosystem Perspective

Although social procurement is viewed as an important part of social value creation, barriers to its implementation have resulted in a failure to realise the full societal benefits it was designed to achieve. As a key area of activity for government procurement projects, the construction and transportation industries have a big role to play in contributing positively to societal outcomes. While prior studies have identified barriers from specific cohorts, no prior study has approached this from the perspective of the key stakeholders throughout the social procurement ecosystem within the construction and transport industries. To address this gap in social procurement research, interviews and a focus group totalling 42 participants were undertaken. Participants ranged from those implementing policy (government representatives), tendering for contracts (tier one companies) and providing specialised social procurement services (social enterprises), along with key intermediary support bodies. Results indicate that barriers exist throughout the entire social procurement ecosystem and highlight the need to develop an enhanced social procurement ecosystem capable of maximising the societal benefit that arises from social procurement. These findings provide a set of strategies for the key stakeholders in the ecosystem to consider adopting to improve social procurement outcomes.

Factors Affecting the Cost Savings Rate of University Procurement

The procurement function is an essential part of a university’s operations, as it provides the necessary goods and services for academic and administrative activities.This paper explores the impact of different demand channels on cost savings rate in university procurement. Through surveying and analyzing the demand channels used in university procurement, this study finds that the use of multiple demand channels can improve procurement efficiency and performance, and help reduce procurement costs. Moreover, the quality of communication and information sharing between universities and suppliers, as well as the level of competition among suppliers for procurement contracts, affect the cost savings rate. The findings of this study will also provide important implications for university procurement practices, by helping universities make more informed decisions regarding the selection of procurement demand channels. Ultimately, the goal is to improve the efficiency and effectiveness of university procurement practices, which can lead to cost savings, improved procurement outcomes, and increased value for money.

Discretion and Favoritism in Public Procurement

Abstract This paper investigates the consequences of bureaucratic discretion in public procurement. I exploit a Hungarian policy reform, which allows a “high-discretion” procedure below a certain contract value. At the threshold, I document large discontinuities both in procurement outcomes and in the density of contract values, which indicates that buyers manipulate contract values to avoid auctions. I combine the reform and a structural model to find that discretion increases prices and results in the selection of less productive contractors. I also show that high discretion benefits firms with connections to the party of the central government. I use the structural model to document that public buyers are willing to sacrifice more contract value to increase their discretion if more connected firms are operating in the market. I also use the model to simulate the effects of counterfactual procurement thresholds on different procurement outcomes.

Determinants of Conformance to Requirements in Procurement by Nigerian Federal Ministries, Departments, and Agencies (MDAs) in Post-Procurement Reform Periods in Nigeria

The quality of goods, works and Services procured by Federal Government Ministries, Departments and Agencies (MDAs) in post-reform periods in Nigeria has been a topic of concern since the implementation of procurement reforms. This study examined the impact of quality compliance on procurement outcomes, including the factors affecting quality procurement, the challenges of enforcing compliance, the level of awareness and compliance, and the effectiveness of eProcurement. Data was collected using a 5-point Likert scale, and ANOVA was performed to identify any relationships between the variables. The results revealed that the factors affecting quality procurement had a significant impact, with a high F-ratio and probability, indicating that they play a crucial role in determining procurement outcomes. The challenges of enforcing quality compliance had a lower F-ratio and probability, suggesting that enforcement did not significantly impact compliance. The level of awareness and compliance had a moderate F-ratio and probability, indicating the need for further collaboration between different stakeholders to enhance compliance. The effectiveness of eProcurement also had a moderate F-ratio and probability, which suggests that more attention should be given to the optimization of eProcurement systems to improve procurement outcomes. The impact of quality compliance as an independent variable showed that it significantly affects the procurement of goods, services, and works, indicating the importance of prioritizing compliance in procurement reforms. Overall, these findings highlight the need for continuous monitoring and improvement of procurement processes in Nigeria’s MDAs to ensure quality outcomes and compliance.

Information is essential for competitive and cost-effective public procurement

Public authorities promote transparent public procurement practices to increase competition and reduce public procurement costs. In this article, we focus on public procurement of the European Union (EU). We employ a multidisciplinary approach to analyse economic effects of information in public procurement. We quantify the information content of 2,390,630 EU public procurement notices published in 22 different languages using natural language processing techniques. Subsequently, we examine the impact of the information content on public procurement outcomes. We find that higher information levels have significant positive effects. Competition is considerably higher when notices contain more information. On average, contract prices would be 6%–8% lower if notices were to contain adequate information. EU governments could save up to [Formula: see text]80 billion if all public procurement notices were to have detailed information. Based on our comprehensive analysis, we believe that authorities should regulate the information content of notices to promote competition and cost-effectiveness in public procurement.

Public Procurement in Law and Practice

We examine a new dataset of public procurement laws, practice, and outcomes in 187 countries. We measure regulation as restrictions on the discretion of the procuring entities. We find that laws and practice are highly correlated with each other across countries, and better practice is correlated with better outcomes, but laws themselves are not correlated with outcomes. A closer look shows that stricter laws correlate with improved outcomes, but only in countries with low public sector capacity. We present a model of procurement in which both regulatory rules and public sector capacity determine procurement outcomes. In the model, regulation is effective in countries with low public sector capacity, but not in countries with high capacity because it inhibits the socially optimal exercise of discretion to exclude low quality bidders. (JEL D73, H11, H57, K12, K42, O17)

Evidence-related requirements in Swedish public sector procurement of health and welfare technologies \u2013 a systematic review

BackgroundHealth and welfare technologies (HWT) are becoming increasingly employed in the Nordic countries, and in Sweden in particular. The amount of HWT public procurement is likely increasing at a similar rate, but requirements for evidence for effectiveness placed on bidders during this process may be lacking.MethodThis study investigated the use of evidence as a requirement in public sector tendering process of HWT, and how it affected bidder attributes and procurement outcomes. A novel type of systematic review and content analysis of requests for tenders for HWT announced prior to June 2021 was therefore conducted in Swedish public procurement databases.ResultNinety requests for tenders for 11 types of HWT met the inclusion criteria for review, accounting for potential contracts worth 246 to 296 million EUR. Criteria requiring evidence for effectiveness were used in 16 requests for tenders, accounting for 183 million EUR in potential contracts. Eight of the requests referred to an established independent standard to confirm such evidence, such as CE standard of conformity, MDR and/or MDD. This prevalence appears to cut across all types of procuring organisations and all types of HWT. The use of any evidence criteria, or lack thereof, does not appear to affect the outcomes of the tendering process.ConclusionCriteria requiring evidence for effectiveness are used in less than a fifth of all public procurements of health- and welfare technologies in Sweden, and less than 10% refer to some form of independent standard as confirmation of such evidence. The procurement process therefore risks creating a legacy of sub-optimal technologies in health- and social care services. More prevalent and specific requirements for evidence and its continual generation in the procurement process are highly recommended. Recommendations for decision makers, procurement managers, and developers are provided.

Dual Procurement of Lung and Heart Allografts Does Not Negatively Affect Lung Transplant Outcomes

BackgroundThe data that exists regarding multiorgan procurement outcomes is conflicted. Given the increasing demand for pulmonary allografts, it is critical to assess the impact of dual procurement on lung transplant recipient outcomes. MethodsThe United Network for Organ Sharing transplant registry was queried for all first-time adult (age ≥18) lung transplant recipients between 2006 and 2018 and stratified by concurrent heart donor status. Multiorgan transplant recipients and recipients with missing survival time were excluded. Donors were excluded if they were donating after circulatory death, did not consent or were not approached for heart donation, the heart was recovered for nontransplant purposes, or the heart was recovered for transplant but not transplanted. Post-transplant survival was analyzed using the Kaplan–Meier method and multivariable Cox proportional hazards regression. ResultsA total of 18,641 recipients met inclusion criteria, including 6230 (33.4%) in the nonheart donor group (NHD) and 12,409 (66.6%) in the heart donor group (HD). HD recipients demonstrated longer survival at 10 years posttransplant, with a median survival of 6.5 years as compared with 5.9 years in NHD recipients. On adjusted analysis, HD and NHD recipients demonstrated comparable survival (AHR 0.95, 95% CI 0.90-1.01). ConclusionsConcomitant heart and lung procurement was not associated with worse survival. This finding encourages maximizing the number of organs procured from each donor, particularly in the setting of urgency-driven thoracic transplantation.

Competition Issues in Public Procurement: Is Tender Design the Solution?

Public procurement is one of the most important economic activities for any economy. The forward linkages and its impact on social and industrial policy give it “an engine of growth” dimension. In this attempt, we try to study why competition is crucial for the success of any procurement policy. The fundamental need for public procurement is to be efficient, as an “efficient” public procurement not only reduces public expenditure but also has positive externalities. The basic framework within which we try and study the competition concerns in public procurement is based on two types of concerns, namely collusive and non-collusive. These two types of concerns emanate from a combination of numerous factors like number of sellers, demand conditions, and market dynamics. The factors, which result in inefficient procurement, are often not amenable to quick changes to ward off the threats completely. Therefore, a multi-prolonged approach is needed for efficient public procurement outcomes. Tender designs draw the boundaries of the competition field where sellers compete for the market. Therefore, they can incorporate elements to address specific threats that a particular procurement market face. Hence, the tender design is a potential tool which can be utilised to mitigate and address these concerns.