Procurement Practices Research Articles

Longitudinal assessment of green procurement practices adopted by manufacturing firms in an emerging economy using multivariate approach

Longitudinal assessment of green procurement practices adopted by manufacturing firms in an emerging economy using multivariate approach

The role of reputation in cross-regional buyer-supplier cooperation in public procurement

Relevance. The relevance of this study is determined by the growing trend of implementing approaches from the private sector in managing public procurement, such as suppliers’ reputation assessment. Although the suppliers’ reputation factor is a topic of current interest, both in research and in public procurement practice, there are ongoing discussions on the effects of the reputation criterion usage in public procurement, and some aspects have been insufficiently studied. Purpose of the study. This study examines the role of suppliers’ reputation factor in terms of interregional cooperation between public buyers and suppliers at the micro and regional levels. Data and methods. The analysis is based on a survey of public buyers in Russia, revealing procurers’ orientation on suppliers’ reputation factor and their involvement in cross-regional cooperation for micro-level analysis. With the help of open data on public procurement contracts, a grouping of Russian regions by the share of suppliers from other regions is proposed. The combination of open data analysis and survey results is then used to explore the role of reputation in terms of interregional cooperation. Results. The analysis shows that a suppliers’ reputation factor is of particular importance when more than half of a buyers’ suppliers are from other regions. Also, suppliers’ reputation is of major significance for public buyers in regions that are more involved in contracting with suppliers from other regions. Thus, the importance of the suppliers’ reputation factor, in terms of interregional cooperation, is confirmed both at the micro level of procurers’ purchases and at the regional level. Conclusion. For effective management of contractual relationships in public procurement, it is important to understand the effects and the role of considering the reputation of suppliers. The study focused on one of the insufficiently explored aspects of suppliers’ reputation in public procurement. The results may be of interest both to regulators and direct procurement participants – public buyers and suppliers.

Sustainable procurement practices and sustainable performance: evidence from small and medium-sized manufacturing enterprises in an emerging economy

Sustainable procurement practices and sustainable performance: evidence from small and medium-sized manufacturing enterprises in an emerging economy

Collaborative Project Procurement in the Construction Industry: Investigating the Drivers and Barriers in Malaysia

The traditional construction procurement approach engenders adversarial attitudes and the pursuit of individual organisation’s gain has led to inefficiencies and poor project management. Previous studies suggest collaborative working in the construction supply chain may produce better outcomes. This article examines the drivers and barriers to embracing collaborative procurement practices pertinent to the construction industry in the developing world; using Malaysia as a base of the study. Drawing on an empirical survey involving construction professionals (contractors, consultants and clients), the significance of the drivers and barriers are prioritised based on mean scores. The most significant drivers are better quality outcome, better cost control, better time control, effective problem solving and increased client satisfaction. As for the barriers, resistance to change current way of working, communication problem, incompatible personalities and organisational cultures, lack of top management support, and inadequate training and guidance rank the highest. Next, Kruskal- Wallis tests were selected to compare the results given by the three groups of respondents. All the drivers are homogeneously perceived except for “long-term relationship”. Homogeneous perceptions are observed for all drivers. Results from this study are expected to benefit both construction practitioners and researchers in the exploration, planning and implementation of collaboration-based project procurement arrangements.

Ethical procurement in Ghana's public sector: implementation challenges in the Bolgatanga Municipality

This study assessed the extent of the implementation of procurement ethics among public entities in the Upper East Region (UER) of Ghana. A descriptive research design was applied. Simple random and purposive sampling techniques were used to select 268 respondents composed of senior managers, heads of departments, section heads and procurement officers of the selected public entities across the region. The quantitative data was collected through an interviewer-administered questionnaire. Data was keyed into CSPro 7.4, transferred to version 28 of SPSS and analysed. A chi-square was applied to test the relationship among the elements of procurement ethics in selected public entities in the region. The study established that law enforcement and health sector public entities ranked highest in the implementation of ethical procurement practices whiles those in the educational sector ranked lowest. The study found a significant association between procurement ethical factors such as accountability and transparency, conformity to laws and ethical standards, conflict of interest, confidentiality and impartiality and fairness. No association was found for honesty and integrity, avoidance of appearance of impropriety, due diligence and professionalism as confirmed from their respective p-values.

Electronic Procurement Practices and Performance: the Role of Institutional Quality

Electronic Procurement Practices and Performance: the Role of Institutional Quality

Procurement in Sausage Supply Chain - A Case Study From Mavin Foods

As a result of a rise in disposable incomes, population growth, and urbanization, sausage consumption in Vietnam has increased significantly over the last decade. To meet the higher demand from the local market, meat processors must establish an appropriate supply chain with identified sources to ensure food safety and good quality at a reasonable cost. This paper tries to assess the purchasing activities in the sausage supply chain in Vietnam in general and at a specific company such as Mavin Foods in particular. An in-depth interview method was applied by authors to get data for insight procurement practice of Mavin Foods’ sausage supply chain. The paper reveals the company’s self-contained production chain (3F) that helps to control all stages of Mavin’s sausage supply chain with many opportunities and challenges.

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.

Assessing public–private procurement practices for medical commodities in Dar Es Salaam: a situation analysis

BackgroundIn Tanzania, the Medical Stores Department is the principal pharmaceutical provider to public health facilities throughout the country. However, growing demand from health facilities has proved difficult to satisfy and stock-outs at health facilities are frequent. The aim of the current study was to conduct a situation analysis of the procedures and practices of procuring medicines and medical supplies from private suppliers in the Dar es Salaam region when those commodities are unavailable at the Medical Stores Department.MethodsA mixed-method approach including qualitative and quantitative methods was applied to understand procurement procedures and practices and private suppliers’ performance at district level. Qualitative interviews with suppliers and district authorities, and a review of inventory documents at store level was conducted between February and March 2018. The quantitative approach included a review and analyses of relevant procurement documents from the 2016/2017 financial year to explore the funds used to procure health commodities from the private sector. The ten most frequently mandated private suppliers were assessed in more detail focusing on cost, quality and availability of medicines and lead times and delivery.ResultsA lack of consistency and written guidelines for procuring medicines and medical supplies from the private sector was observed. The procurement process was bureaucratic and lengthy requiring multiple steps between health facilities, suppliers and district authorities. A significant number of people were involved requiring a minimum of 13 signatures and 16 steps from order preparation to approval.Only 17 of 77 prequalified private suppliers received orders from public health facilities. The criteria for choosing which supplier to use were unclear. Completed orders amounted to USD 663,491. The bureaucratic process drove councils and healthcare facilities towards alternative ways to procure health commodities when Medical Stores Department stock-outs occurred.ConclusionThe procurement procedure outside the Medical Stores Department is inefficient and cumbersome, often circumventing government regulations. General lack of accountability renders the process susceptible to leakage of funds and medicines. Increasing the transparency and efficiency of procurement procedures from the private sector with a prime vendor system would help to better manage Medical Stores Department stock-outs and help improve health care services overall.

Organizational Agility and Sustainable Manufacturing Practices in the Context of Emerging Economy: A Mediated Moderation Model

Since the beginning of the 21st century, agility and sustainability have played a significant role in the global manufacturing industry. The manufacturing paradigm leaning toward green procurement and organizational agility has crossed all levels of sustainability by colossally influencing the firms’ sustainable practices, innovation capacity, and eco-friendly procurements. Integrating sustainable practices in manufacturing is a complex task that demands that global economies conduct comprehensive research on the factors influencing the firms’ sustainable practices. Therefore, the study considers empirical research between organizational agility and sustainable manufacturing practices. The data was collected from 461 respondents working in the manufacturing sector by applying a convenience sampling technique. We utilized structural equation modeling (SEM) for direct and indirect hypothesis testing. The study results revealed that operational, customer, and partnering agility significantly and positively impact sustainable manufacturing practices and green procurement. Green procurement mediates the relationship between operational, customer, partnering agility and sustainable manufacturing practices. The study results showed a significant moderating role of big data between green procurement and sustainable manufacturing practices. The study findings are helpful to managers and policymakers.

Essential anticancer medicines for children: defining what matters most for Europe.

Access to essential anticancer medicines is a vital component in the treatment of children with cancer. Inequities in such access are a reality both between and within countries, and constitute a key contributor to the disparate survival outcomes observed among children with cancer globally.1 WHO has added anticancer medicines to its List of Essential Medicines for children (EMLc), to inform medicine selection, procurement, and supply management practices by national governments and health-care institutions internationally.

The Effect of Procurement Practices on the Operational Performance of Airlines in Rwandair Ltd

The main objective of this study was to assess the procurement practices and the procurement progress of RwandAir Ltd. The specific objectives were to establish the effect of procurement planning on the operational performance of RwandAir Ltd, the second one was to find out the effect of electronic procurement on the operational performance of RwandAir Ltd and the third one was to identify the effect of procurement evaluation on the operational performance of RwandAir ltd. Agency theory and Legitimacy, and Institutional theories are the theoretical foundation of this study. Procurement Practices are independent variables and procurement performance was an independent variable. The researcher used a quantitative method approach during analyzing of findings through Descriptive statistics using bivariate analysis. The target population was 44 permanent staff working in different departments. The sample size was all respondents 44 targeted, who determined by the use of a Census technique. The two data collection methods include a questionnaire survey and a secondary data sheet, which used for data collection. Primary data collected by structured questionnaire through a stratified sampling method. The validity of the research instrument determined used of content validity, while reliability was verified through the test-retest method. Data analyzed and organized by SPSS version 22. Data analysis was a quantitative data analysis method presented by descriptive and multiple regression statistics methods. The study showed that procurement planning, e-procurement, and procurement evaluation had countless roles towards on the operational performance of RwandAir Ltd. Findings showed that all predictor variables of procurement practices activities included: procurement planning (X1) Electronic procurement function (X2) and Procurement evaluation function (X3) positively and statically signifies operational progress in RwandAir Ltd between 2016 and 2021. This is established by the regression coefficients: (i) β1=.478 with p=.000<.05 at a 5% level of significance that shows that Procurement planning statically signified and positively influence operational progressive β2=.142with p=.002<.05 at a 5% level of significance, which shows that electronic procurement statically signifies and positively affect operational progress. β3=.412 with p=.000<.05 at a 5% level of significance, which shows that procurement evaluation then statically signifies and positively affect operational progress in RwandAir Ltd between 2016 and 2021. The research recommends RwandAir Ltd sustainably implement procurement practices theories that continue to support their operational performance. Keywords: Procurement Practices, Operational Performance, Rwanda Air, Rwanda

Market shaping for a fossil-free economy: Institutional work to change market practices of public procurement

In the context of climate change as a grand challenge, this article offers insights on market shaping from research on industrial networks and institutional work to the market practice perspective. The purpose of the study is to conceptually integrate policy practices and market practices aimed at coping with climate change using public procurement as a case. We draw upon a conceptual model distinguishing three separate market practice categories: market exchange, market representation, and market normalizing. In expanding the model with policy actors deliberate market shaping activities, we locate institutional work as part of the larger set of normalizing practices. Based on the extended model, we find two concepts worthy to be at the core of the analysis: translation within and between market practice categories, and temporality attributes of institutional work and market actor innovations.In an empirical study, reflecting an on-going abductive research process on market shaping, the article scrutinizes how government institutional work in Sweden can make public procurement contribute to innovations related to market practices. Based on a study of government documents, we formulate three propositions, on translation, temporality and market representation. The study suggests that temporality dimensions in institutional work to develop policy innovations and translation of the innovations to exchange practices affect the intended effects on procurement behavior. It also shows that policy innovations performed by institutional work might be in conflict with established norms to which actors might continue to adhere, requiring added translation efforts, and delaying climate mitigating effects. Based on the empirical observations, the article argues that value chains, as a model for market representation, may have the performative power to shape and reshape markets.

Did Physicians Have a Role to Play in National Blood Crisis?

Background: The pandemic of COVID-19 (Coronavirus disease 2019) impacted the practices of blood product procurement and transfusion in multiple ways, including failed blood donation drives, staffing limitations and low donor turnout. On January 1, 2022, the American Red Cross declared the worst national blood crisis in over a decade. The effect was most notable on the community medical centers with limited resources in securing products for blood transfusion. However, evidence is lacking for the usage of blood products in a community teaching hospital during this pandemic. Study Design and Methods: We aimed to contrast the adherence to restrictive transfusion practice in the COVID era with the pre-COVID era irrespective of COVID-19 diagnosis. We performed a retrospective observational study involving packed red blood cell (PRBC) transfusions in patients from June 2020 to August 2020 (COVID era) and September 2019 to November 2019 (pre-COVID era). Patients with hemoglobinopathies were excluded. A detailed chart review to include the number of PRBC transfusions, documented indication for transfusion and it was also determined if transfusions met restrictive blood transfusion criteria (as per guidelines from the Association for the Advancement of Blood & Biotherapies (AABB)) (Table 1). Demographic data included age, gender, history of coronary artery disease (CAD) or prior gastrointestinal bleed, use of antiplatelet and anticoagulation, use of deep vein thrombosis prophylaxis inpatient, and diagnosis on admission. Chi-square was applied to test the statistical association between qualitative variables and Unpaired t-test/Mann Whitney U test was applied to test the mean difference of quantitative. The level of significance was set at 5%. Results: A total of 215 patients were screened and 208 met our inclusion criteria. There were 108 PRBC transfusions in the COVID era group and 100 PRBC transfusions in the pre-COVID era group, with equal distribution in both groups for age, sex, ethnicity and prior gastrointestinal bleed. The leading diagnosis on admission in both COVID era and pre-COVID era groups was acute hypoxia (53.7% and 36% p<0.001), followed by gastrointestinal bleeding. Lower proportion of patients receiving transfusion were on anticoagulant or antiplatelet therapy in COVID era group as compared to pre-COVID era (antiplatelet: 6.2% vs 19%, p<0.001 and anticoagulant: 12.1% vs 27%, p<0.001), though COVID era group had lower fraction of patients receiving pharmacological prophylaxis for deep vein thrombosis (DVT) (13.9% vs 29%, p<0.001). There was a higher percentage of transfusions in critical care units in the COVID era group than pre-COVID era group (38.9% vs 22%, p<0.008). Documented indications for transfusions in both groups were hemoglobin < 7 (47.2% vs 43%), acute coronary syndrome (ACS) or history of CAD (12% vs 11%), active bleed (35.2% vs 35%) and down trending hemoglobin (5.6% vs 11%). Restrictive transfusion criteria were met in only 67% vs 79% in COVID era and pre-COVID era transfusion cases respectively (p=0.008). Subgroup analysis of documented indications for transfusion among both groups is displayed in Graph 1. Conclusions: As evident from our results, the COVID era group despite having comparable, if not fewer risk factors associated with blood loss, received blood transfusion with less stringent adherence to restrictive blood transfusion guidelines. COVID pandemic had a significant impact on the landscape of blood transfusion and our study brought to light the physician's role in more liberal use of blood products. Due to a higher number of critical care admissions and the morbidity/mortality during this pandemic, compel physicians to have a more liberal mindset towards blood transfusions. However, given the acute shortage of blood products it is vital that we adhere to restrictive blood transfusion guidelines. In view of the ongoing National Blood Crisis, please visit RedCrossBlood.org or call 1-800-RED CROSS (1-800-733-2767) to donate blood. Figure 1View largeDownload PPTFigure 1View largeDownload PPT Close modal

Barriers to Adoption of Sustainable Procurement in the Nigerian Public Construction Sector

Construction industry tenders are usually awarded to the lowest bidder, with emphasis being placed on the past, on price, quality, and timeliness, with little to no attention paid to the commitment of contractors to sustainability. It is not all construction firms and other stakeholders have an understanding of what sustainable procurement is about in the Nigerian construction industry, resulting in the limited adoption by those that understood it due to the level of risk they claimed it involved. This research examines the barriers to implementing sustainable procurement in the Nigerian construction industry by adopting a survey approach using self-administered questionnaires to obtain data from a purposively sampled group of 116 procurement practitioners in Abuja, Nigeria. The data were analyzed using descriptive statistics and exploratory factor analysis. Factor analysis was used in categorizing the barriers to sustainable procurement into four: attitude and poor fiscal incentive; financial restrictions; insufficient leadership and knowledge; and regulatory constraints. The result showed that there was no sustainable procurement regulatory framework in the country and that a lack of government commitment, poor economic conditions, and a lack of knowledge were the major barriers to the adoption of sustainable procurement in the Nigerian public construction sector. It is therefore suggested that to make the construction industry’s activities more sustainable, practitioners need to learn more about sustainability, and governments should make policies that encourage and support low tariffs and taxes on sustainable goods and provide government subsidies. The research adds to the ongoing discussion about sustainable procurement practices in developing economies. It does this by drawing on a variety of theoretical perspectives to give a deep understanding of the challenges of sustainability from the public sector’s point of view.

Assessment of the Social Dimension of Sustainable Procurement Management Adoption in Large Commercial Banks in Kenya

Sustainable procurement management has emerged as one of the major key areas for companies to gain a competitive advantage and, at the same time, increase their market share. In Kenya, the banking industry continues to face enormous challenges, such as rising non-performing loans, stiff competition, the cap on interest rates, and ever-evolving technology. This study sought to assess the social dimension of sustainable procurement management adopted in large commercial banks in Kenya. The study adopted an exploratory research design using qualitative approaches. The target population comprised the procurement and corporate affairs officers in the large commercial banks in Kenya. Purposive sampling was used to target the respondents. The study used interviews to collect primary data, and secondary data were collected by reviewing banks' reports, websites, and the central bank's reports. The findings revealed that the selected banks have adopted socially sustainable procurement practices at different levels. The study concluded that the banks have adopted the social dimensions of sustainable procurement practices.

Uncovering the Influence Mechanism between End-User Involvement and Product Usage in Public Procurement: A Service-Dominant Logic Perspective

End-user centric procurement practices, while receiving a growing scholarly and policy interest, lack solid theoretical and empirical foundations. Using service-dominant logic, this study seeks to uncover the influence mechanism between end-user involvement and product usage in public sector procurement. Primary data was gathered from 122 public organisations in a developing economy, Ghana. PROCESS macro for SPSS was used to estimate the study model. The findings suggest that end-user involvement is positively related to end-user satisfaction but not product usage. Additionally, the findings provide empirical support for our contention that the link between end-user involvement and end-user product usage is mediated by end-user satisfaction. This study adds to the end-user centric procurement literature by offering theoretical and empirical insights on the end-user satisfaction process that explains the relationship between end-user involvement and product usage.

The adoption of green public procurement practices: Analytical challenges and empirical illustration on Swedish municipalities

The objective of this paper is to investigate the determinants of the adoption of green public procurement (GPP) practices at the local authority level. A conceptual contribution of the paper is an analytical framework, which acknowledges that the adoption of green criteria in tenders should be modelled as a conditionally independent decision from the decision to rely on GPP strategies (guidelines). This approach can help provide novel insights into how various political, organizational, and individual characteristics influence GPP. The paper provides an empirical illustration by concentrating on the role of organizational size. This analysis is based on survey responses from civil servants representing 140 Swedish municipalities. The results are based on the bivariate ordered probit estimator and suggest that large municipalities are more likely to rely on GPP strategies but also less prone to adopt green criteria in tenders when controlling for the presence of such strategies. In large organizations, the centralization of the procurement implies efficiency gains, but it will often be accompanied with longer organizational distances between the procuring and the environmental departments. The paper also highlights the wider implications of the proposed framework, including how future research on GPP practices could approach the role of various political and individual factors.

Green Procurement as a Tool in Maximizing Customer Satisfaction in a Manufacturing Organisation: A Case of BIDCO Kenya

Purpose: The purpose of this study was to do an assessment of how sustainable green procurement is a tool for customer satisfaction with reference to BIDCO Africa in Thika. This study was guided by the following research objectives: to establish the role of corporate social responsibility in customer satisfaction and to determine the role of reverse logistics in customer satisfaction.&#x0D; Methodology: The study adopted a descriptive research design. The target population in the study was 400 employees working with BIDCO. Sampling technique was used to ensure that each case in the population has an equal chance of being included in the sample. A questionnaire was used as a data collection instrument that aided to collect the relevant information needed for analysis. After collection of data it was analyzed using descriptive statistics methods such as mean, weighted averages and percentages. The analyzed data was presented by use of frequency tables, charts and graphs. Regression analysis was also applied where computer software was used also that is Statistical Package for Social Sciences (SPSS) for data analysis.&#x0D; Findings: The results indicated that there was positive relation between green procurement and customer satisfaction and the researcher recommended more application of the variables used in this study to increase on the customer satisfaction of manufacturing organization. Further studies recommended a comprehensive study to be done using both questionnaires, interviews and any other method of data collection to obtain in-depth information that the researcher missed in this study. System theory was tested by the researcher, This theory was used to describe an organization as a system that requires interrelation of all parts and change at one point may lead to multiple changes of other parts, (Maignan, 2012).organizations should operate as open systems where it should interact with the environment, even as many firms are painting their products green and they are not environmental friendly.&#x0D; Unique Contribution to Theory, Practice and Policy: The study recommends that with the global warming and environmental concerns from all sectors, there’s is need for manufacturing organizations in Kenya to adopt green procurement practices in order to help in efforts of conserving the environment.

Strategic Procurement Management Practices and Performance of Real Estate firms in Nairobi County, Kenya

In Kenya, the real estate industry provided 9.0% of the GDP of the nation in the second quarter of 2020. It also made a large contribution to employment generation and the provision of residential and commercial space. But because of the weak housing market, which is demonstrated by the housing index's progressive and severe decrease in the 2019- 2020 period, real estate enterprises continue to encounter a variety of performance issues. The real estate firms in Kenya have also had challenges of late delivery of the housing projects, poor quality of delivered projects, client funds misappropriations, and legal challenges with their clients. This study sought to examine the effect of procurement management practices on the performance of real estate firms in Nairobi County, Kenya. This study utilized correlational research design. The study’s population was the 100 senior managers of real estate firms in Nairobi County, Kenya. The study utilized a sample size of 50 respondent’s generated using Naissuma coefficient of variation formula. The study collected data using structured questionnaires. The findings indicated that strategic procurement practices have a significant effect on the performance of real estate firms. The study concludes that applying aspects such as supplier optimization dynamics, supplier development and strategic alliances with suppliers is significant in organization performance among firms. The study recommends that supplier development strategies in terms of financial support and training ought to be underscored. The real estate practitioners and investors in the real estate may gain an understanding on the effect of the strategic management practices on the performance of the real estate firms.