Procurement Practices Research Articles

Implementing public procurement of green innovations: Does structural alignment matter?

This study contributes to the theory and practice of public procurement by examining the role of structural alignment in the implementation of public procurement of green innovations. Structural alignment is defined as the coherence and harmonization between strategic aspects of an organization. The organizational aspects examined in this study are strategic goals, structural and control mechanism, and adequacy of resources. The study draws on secondary survey data collected from 379 public-sector organizations in Norway. The analysis was conducted using a novel approach that combines partial least squares structural equation modeling and necessary condition analysis. There is a positive and significant relationship between strategic goals and structural and control mechanism; between structural and control mechanism and adequacy of resources; and between the adequacy of resources and the attainment of public procurement of green innovations. The findings support the structural alignment hypothesis in that the presence of strategic goals results in the implementation of the public procurement of green innovations if structure, control, and adequate resources are in place. Finally, the results show that strategic goals are a necessary condition for enacting a corresponding structural and control design and that structural and control design are a necessary condition for allocating resources, which are themselves a necessary condition for the increased implementation of the public procurement of green innovations.

Green Hospitals: A a remedy for the Climate Change Burden on the Polish Healthcare System

The global healthcare sector faces challenges, including an aging population and climate change concerns, contributing 4.4% to global greenhouse gas emissions. The Polish healthcare system, surpassing global averages in environmental impact, grapples with demographic challenges and disproportionate carbon emissions. This study explores the potential of green hospitals, integrating sustainable practices, to reduce the sector's environmental footprint. Recommendations for policymakers and healthcare stakeholders focus on energy, water management, and waste/recycling practices. The brief emphasizes water conservation in healthcare, citing successful case studies like the French Nephrocare network. Energy-efficient solutions, exemplified by the Philips BlueSeal MRI coupled with SmartSpeed acceleration engine, offer cost savings despite upfront expenses, aligning with Green Public Procurement (GPP) practices. Sustainable waste management practices – crucial for healthcare units – require training programs and recycling initiatives in green hospitals to minimize environmental impact. Despite challenges, green hospitals offer a promising avenue for the future of healthcare, contributing to improved patient outcomes, reduced costs, and a sustainable healthcare infrastructure. The brief emphasizes the need for immediate action, encouraging stakeholders to advocate for green hospital policies to minimize climate change's impact on public health.

Effect of Procurement Practices on the Performance of Construction Projects; A Case of SONATUBE-Sahara-Kabeza Road in Kicukiro District Rwanda

Effect of Procurement Practices on the Performance of Construction Projects; A Case of SONATUBE-Sahara-Kabeza Road in Kicukiro District Rwanda

Enhancing BIM implementation in Spanish public procurement: A framework approach

The European Union supports the use of technology to improve public procurement, acknowledging Building Information Modeling (BIM) as a catalyst for cost-effective public works and innovation. The purpose of this paper is to evaluate BIM implementation practices in Spanish public procurement. The methodology used in this study is a mixed research method involving a questionnaire survey and semi-structured expert interviews. The findings reveal market maturity as a barrier to BIM adoption in Spanish public procurement throughout the asset lifecycle. Selecting the right instrument for implementation proves challenging for public organizations. This study has contributed to the development of more practical and effective strategies to ensure full adoption of BIM within the public procurement sector of Spain. It proposes a framework approach for the pre-contractual phase, helping contracting authorities to make the optimal instrument selection. Two criteria are considered: the maturity of the public client and sector, and the economic value classification of tenders.

Sweeping the dirt under the rug: measuring spillovers of an anti-corruption measure

Abstract This article studies the spillover effects of an Italian anti-corruption measure targeting municipalities colluding with organized crime. We assess its impact on neighboring municipalities’ procurement practices. Our findings reveal that neighboring municipalities increase contracts falling below the 40,000 Euro threshold, which bear lighter evidentiary requirements, and are consequently harder to monitor. The neighboring municipalities strategically evade stricter regulations by fragmenting major projects into different sub-threshold contracts. Our analysis presents three evidence that this response stems from greater law enforcement monitoring. First, the number of arrests increases in the area after the implementation of the measure. Then, we demonstrate that the spillovers are more pronounced in areas with greater prior law enforcement activity. Lastly, we illustrate how neighboring municipalities react to the dissolution by reducing their engagement in activities that are more susceptible to monitoring. This is evident in their decreased participation in renegotiating public works contracts (JEL D730, H570, K420).

Implications of Bid Rigging Practices in Small Island Developing States: A Case Study

The Bid rigging on construction projects has a wider societal implication that has spanned beyond the parties to the contract. This has led to costly litigation actions and additional unaccounted transactional costs derived from taxpayers’ funding. This study utilized a qualitative approach, through an emic view of a contemporary case study between the Government of Trinidad and Tobago and several contractors on bid rigging practices. The findings revealed that recommendations indicated within a Commission of Enquiry could have prevented unlawful practices. This research justifies the need for systems to be in place to comply with procurement laws and the heightened need for enforcement of ethical practices in state organizations. This research can assist policy makers in determining areas that require updating in relation to procurement and contract management practices within the construction industry.

Procurement Methods and Practices in Municipality Projects -An Analysis from Mandandeupur, Nepal

Purpose: To analyze the procurement methods and practices adopted in Mandandeupur Municipality, newly formed municipality in Kavrepalanchowk district under Bagmati province of Nepal. Design/Methodology/Approach: A structured set of questionnaires were developed in order to assess the practice of contract administration functions in the contract project conducted by the Mandandeupur Municipality in the F/Y 2074/075 B.S, 2075/076 B.S, 2076/077 B.S, 2077/078 B.S & 2078/079 B.S. Findings/Result: The study also examined the bidding trends in the municipality, revealing that 56.25% of the total bids were low bids, indicating potential cost savings. Additionally, 68.75% of the bids were competitive, suggesting a healthy level of competition in the procurement process. However, 3.125% of the bids were found to be collusive, indicating the presence of unethical practices that need to be addressed. Originality/Value: The study is significant to control significant low bid by asking to provide a method of statement, work schedule, and clarification for low bidding to ensure effective implementation of contract projects. The method of statement from the contractor can also help resolve negotiation/variation of conflicts. Paper Type: Empirical Research

The impact of procurement strategies on supply chain sustainability in the pharmaceutical industry

In today's society, there is a major role that procurement is playing in sustainability because of great requirements and demand for improvement in some supply chain processes and procurement practices. It helps in making rational decisions that encompass economic, social, and environmental parts of society. Corporate sustainability requires such abilities to impact external firms in the process of supply chain. In the Economic advancement markers worldwide, public and neighbourhood levels advance sustainability approaches are advised, as they represent the advancement in the supply chain process. By implementing procurement strategies in the pharmaceutical industry elements of supply chain sustainability can improve environmental, social a financial impact on society. It is a cross-sectional study. The present study was conducted in the urban areas of Karachi, Pakistan. Data collection will be through questionnaires and surveys. It is designed for information collection so it can be used to determine the improvement and impact of sustainability on procurement strategies in supply chain sustainability.

The Influence of Procurement Practices in Commercialization of Water, and Private Service Delivery in Nairobi County, Kenya

Aim: The purpose of the study was to discuss the effect of procurement practices on commercialization of water and private service delivery in Nairobi City County, Kenya. Methods: Quantitative and Qualitative methodologies of data collection and analysis were implored in this research. The Collection of the data was through key informant interviews and questionnaires. Secondary data was obtained from library research materials, internet search and document analysis. The researcher used descriptive and content analysis techniques to analyze the data. Simple random sampling was used in selecting participants from Nairobi City residents. The target population was 4,397,073 Nairobi City County Residents and 635 Staff of the Ministry of Water, Sanitation and Irrigation; two departments were targeted in the Ministry i.e. The Water, Sewerage and Sanitation Development department and The Water Infrastructure Development Department which has a total of 168 in-post staff. Results: The study found that the components of commercialization of water greatly influences the quality control and equal access to water by the residents. These components are procurement practices, standardization machinery, and the supervision mandate by governmental agencies i.e. WASREB (Water Services Regulatory Board) and WARMA (Water Resources Management Authority). The study concludes that having good procurement practices in place, fosters integrity and professionalism in private water service provision. Recommendations: There is need for the government through its approved agencies WASREB and WARMA, to tailor-make policies that would better suit the unique Kenyan societies’ informal service providers, instead of unifying them all to be governed by a single policy. There is need to ensure private water service vendors provide quality and affordable services set out by government and its agencies. The government ought to thoroughly investigate the private water enterprises that have applied to be licensed to provide water services; not just at the national level but also the small-scale water kiosks-ought to be thoroughly scrutinized. The governmental agency WASREB ought to conduct more impromptu checks on WSPs (Water Service Providers) as opposed to only limiting itself to doing quarterly checks and visits.

BlockTender: A Trustworthy System

The tendering process is a critical component in the procurement practices of governments and companies worldwide. However, this process often encounters challenges that undermine its efficiency, transparency, and security. Traditional tendering methods are plagued by issues such as complex documentation, lack of transparency, susceptibility to corruption, and significant security vulnerabilities. To address these challenges, our project introduces a novel approach that integrates blockchain technology into the tendering process. This integration aims to revolutionize the way tenders are issued, managed, and awarded by leveraging the strengths of blockchain, such as decentralization, immutability, and advanced cryptographic security. Our system comprises three main modules—Admin, Tender Officer, and Bidder—each designed to streamline the respective functionalities within the tendering cycle. By utilizing smart contracts for process automation and cryptographic hash functions (SHA-256) for data integrity, the proposed system not only enhances the security and transparency of the tendering process but also significantly reduces the risks of corruption and breaches. The adoption of blockchain technology in tendering processes marks a significant leap forward in procurement practices, offering a more secure, efficient, and transparent method for conducting transactions.

Increasing the role of sustainability in public procurement of personal protective equipment

Sustainability in producing and procuring personal protective equipment (PPE) has become increasingly important in recent years as the COVID-19 pandemic multiplied their usage worldwide. PPE is mostly produced from fossil-based plastic materials, which burdens the environment. We investigate how sustainability from environmental and social perspectives was considered in public tenders in a non-strategic category of PPE during the pandemic, and what were the most relevant enablers and barriers for healthcare procurement units to implement sustainable procurement practices in their procurement actions. Literature review focused on barriers and enablers of sustainable procurement. We interviewed procurement managers and specialists in Finnish healthcare organizations. The transcribed interviews were examined using the inductive content analysis. Sustainability is limitedly considered in public tenders, even though the EU directive on public procurement and national legislation encourages sustainability. Lack of local production, infrastructure for purification and reuse, financial and human resources, organizational level actions and end-users’ perceptions appear to be the most significant barriers for public procurement units. Due to these factors, sustainability was not the decisive factor in selecting providers for PPE during in the pandemic. Sustainability is often highlighted in relation to public sector and especially public procurement, but according to our findings it shows significantly less in actual procurement practices. Efforts are required to both offer more sustainable PPE in the market and developing the recycling and reuse processes in healthcare.

Electronic Procurement Practices and Performance of Logistics Firms in Nairobi City County,Kenya

The general objective of this study was to examine the relationship between e-procurement practices and performance of logistic firms in Nairobi County. The study was guided by the following specific objectives: to ascertain how E-tendering affects performance of logistics firms in Nairobi County, to determine the effect of E-invoicing in the performance of logistics firms in Nairobi County, to what extent E-Payment affect performance of logistics firms in Nairobi County and finally to establish how E-sourcing affect performance of logistics firms in Nairobi County. The study used descriptive design because it enhanced systematic description that is as accurate, valid and reliable as possible regarding the responses. The study was limited to 8 selected logistic firms in Nairobi County. Being an academic study, the period to be covered was 6 months. This study utilized a sample size of 54 respondents. The use of 54 respondents in the study was justified as it was in line with the recommendations of Mugenda and Mugenda who indicated that a descriptive study should include at least 30% of the total population. Since the sample size of 54 represented 30% of the population it was deemed appropriate. The researcher used questionnaires and secondary data as the research instrument to gather the relevant information needed related to the study. The study involved use of professionals and experts to test the validity of questionnaire by trying to assess what concept the instrument is trying to measure and the accuracy of representation of the concept under research. The quantitative data was analyzed using descriptive statistics. In addition, the study used multiple regression analysis to analyze the data. Regarding E-tendering, the study established that E-tendering had a significant and positive effect on the performance of logistic firms in Nairobi County. The study also established that E-invoicing had a significant and positive effect on the performance of logistic firms in Nairobi County. The study further established that E-Payment had significant and a positive effect on the performance of logistic firms in Nairobi County. The study finally established that E-sourcing had significant and a positive effect on the performance of logistic firms in Nairobi County.

The Impact of Globalization on Innovative Public Procurement: Challenges and Opportunities

Incorporating circular economy principles into forward-thinking public procurement strategies enhances sustainability through the promotion of resource efficiency, sustainable sourcing, and extended producer responsibility. This approach not only encourages innovation and collaboration among suppliers but also drives the development of solutions aligned with circular economy goals. The ultimate result is a more cost-effective and environmentally friendly outcome in procurement. This article seeks to investigate the intersection of circular economy principles within the framework of an innovative public procurement system. The study explores the influence of globalization on this innovative public procurement paradigm, addressing both the challenges and opportunities inherent in the process. The study conceptualizes Innovative Public Procurement (IPP) as a strategic approach where public entities acquire goods, services, works, and utilities, emphasizing an optimal balance between price and quality. The central goal is to generate innovative benefits for both entities and society, all while minimizing adverse environmental effects. Employing traditional research methods, including the monographic method, document analysis, and comparison, the study illustrates how public procurement practices can be opened to innovators, including start-ups and innovative SMEs. The findings shed light on the challenges faced by these entities in navigating the procurement landscape, while emphasizing the potential opportunities arising from the synergy between innovative procurement practices and the circular economy. By adopting a holistic perspective that considers the full lifecycle costs and environmental impacts of goods and services, procurement decisions can prioritize options offering superior long-term value. This contributes to the broader transition towards a circular economy, effectively minimizing adverse effects on the environment...

An integrated structural equation modeling and fuzzy qualitative comparative analysis model for examining green procurement adoption drivers

This research examines the factors that influence the implementation of green procurement in small and medium enterprises (SMEs), namely top management commitment, regulations, costs, pressure from consumers, and transformational leadership as moderation. The research employs a quantitative approach with 206 samples from the Indonesian SME industry. It utilizes Structural Equation Modeling (SEM) and Fuzzy-set Qualitative Comparative Analysis (FsQCA). The data set includes factors such as top management commitment, regulations, costs, consumer pressure, and transformational leadership as moderation variables. The results show that management commitment, regulations, costs, and customer pressure influence green procurement. The role of the moderating variable shows that transformational leadership only strengthens the influence of costs on green procurement and regulation on green procurement. Meanwhile, the influence of top management commitment to green procurement and customer pressure on green procurement shows that transformational leadership does not strengthen these variables. The research’s novelty lies in combining SEM and FsQCA to analyze the causal relationships among variables influencing green procurement in SMEs. It highlights the importance of understanding and effectively managing these relationships for organizations adopting green procurement practices.

A prescription for efficiency: optimizing the surgical item inventory management practices in a healthcare facility

PurposeThe primary objective of this article is to examine current procurement, inventory control and management practices in modern healthcare, with a particular focus on the procurement and management of surgical supplies in a prominent public, highly specialized healthcare sector.Design/methodology/approachThis study was conducted in three phases. In Phase 1, the study team interacted with various hospital management stakeholders, including the surgical hospital store, examined the current procurement process and identified challenges. Phase 2 focused on selecting items for a detailed study and collected the qualitative and quantitative details of the store department of the healthcare sector chosen. A detailed study analyzed revenue, output/demand, inventory levels, etc. In Phase 3, a decision-making framework is proposed, and inventory control systems are redesigned and demonstrated for the selected items.FindingsIt was observed that the demand for many surgical items had increased significantly over the years due to an increase in disposable/disposable items, while inventories fluctuated widely. Maximum inventory levels varied between 50 and 75%. Storage and availability were important issues for the hospital. It is assumed the hospital adopts the proposed inventory control system. In this case, the benefits can be a saving of 62% of the maximum inventory, 20% of the average stock in the system and optimal use of storage space, improving the performance and productivity of the hospital.Research limitations/implicationsThis study can help the healthcare sector administration to develop better systems for the procurement and delivery of common surgical items and efficient resource allocation. It can help provide adequate training to store staff. This study can help improve management/procurement policies, ordering and delivery systems, better service levels, and inventory control of items in the hospital business context. This study can serve as a pilot study to further investigate the overall hospital operations.Practical implicationsThis study can help the healthcare sector administration develop better systems for procuring and delivering common surgical items and efficient resource allocation. It can help provide adequate training to store staff. This study can help improve management/procurement policies, ordering and delivery systems, better service levels and inventory control of items in the hospital business context. This study can serve as a pilot study to further investigate the overall hospital operations.Originality/valueThis study is an early attempt to develop a decision framework and inventory control system from the perspective of healthcare inventory management. The gaps identified in real hospital scenarios are investigated, and theoretically based-inventory management strategies are applied and proposed.

IMPLEMENTATION OF GREEN PUBLIC PROCUREMENT IN HIGHER EDUCATION INSTITUTIONS

Purpose: This study attempts to present the Implementation of green public procurement (GPP) along with obstacles and solutions in Higher Education Institutions (HEIs) Design/methodology/approach: The method employed is a qualitative approach using interview discussions supported by documentation on the website of three HEIs. Ten stakeholders, including procurement staff, participated in the study, providing diverse perspectives. The research takes place from October 2023 until January 2024, with the research locus in the three HEIs in Indonesia. Findings: GPP is directed to support green campus programs, including sanitation and infrastructure, waste management, water saving, transportation with low emissions, renewable energy, and education and research. Leadership style, ability to innovate, and support from all academics in higher education determine the success of implementing GPP. Obstacles in implementing the GPP consist of regulatory, resource, and provider constraints that meet the requirements of the GPP. The solution that can be given to overcome these obstacles is to create strict regulations regarding the Implementation of GPP, create environmentally friendly procurement plans, make energy-saving and resource-saving movements, and look for providers that comply with GPP. Research implications: This research provides implications for the practice of green public Procurement in higher education governance. Originality/value: This ground-breaking empirical study concentrates on GPP in State Islamic Higher Education Institutions (SI-HEIs).

Green Procurement Adoption and Environmental Sustainability: A Study of Public Sector Organizations in South Africa

Purpose: The aim of the study was to investigate the green procurement adoption and environmental sustainability: a study of public sector organizations in South Africa. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on green procurement adoption in South Africa's public sector indicates a growing awareness and implementation of environmentally sustainable practices. While progress is evident, challenges such as resource constraints persist. Nevertheless, embracing green procurement holds promise for substantial environmental benefits and cost savings. Efforts should focus on further promoting and supporting the adoption of these practices to enhance sustainability in the public sector. Unique Contribution to Theory, Practice and Policy: Institutional theory, diffusion of innovations theory & resource dependence theory may be used to anchor future studies on the green procurement adoption and environmental sustainability: a study of public sector organizations in South Africa. Public sector organizations should invest in capacity-building initiatives to enhance the knowledge and skills of procurement professionals in green procurement practices. Advocate for the development and enforcement of mandatory green procurement regulations and standards by government authorities.

A lifecycle analysis of complex public procurement: an agency-institutional theory perspective

PurposeThe study sets out to demonstrate how a lifecycle perspective on complex, public-sector procurement projects can be used for making qualitative assessments of procurement policy and practice and reveal those procurement capabilities that are most impactful for operating effectively.Design/methodology/approachAgency theory, institutional theory and the lifecycle analysis technique are combined to abductively develop a framework to identify, analyse and compare complex procurement policies and practices in public sector organisations. Defence is the focal case and is compared with cases in the Nuclear, Local Government and Health sectors.FindingsThe study provides a framework for undertaking a lifecycle analysis to understand the challenges and capabilities of complex, public-sector buyers. Eighteen hierarchically-arranged themes are identified and used in conjunction with agency theory and institutional theory to explain complex procurement policy and practice variation in some of the UK’s highest-profile public buyers. The study findings provide a classification of complex buyers and offer valuable guidance for practitioners and researchers navigating complex procurement contexts.Originality/valueThe lifecycle approach proposed is a new research tool providing a bespoke application of theory by considering each lifecycle phase as an individual but related element that is governed by unique institutional pressures and principal-agent relationships.

Проблемы правового регулирования и пути совершенствования контрактной системы государственных и муниципальных закупок

In this article, the author presents a comprehensive analysis of the legislation and practice of public procurement in Russia, taking into account the changes made to Federal Law No. 44-FL. The author identifies the main problems associated with the instability of legislation, the lack of strategy and planning for the long term, as well as the high costs of specialists in this field. The article proposes a number of solutions, including dividing procurement into mass and complex procedures, introducing competitive dialogue, expanding the use of non-cost criteria when evaluating proposals, and the possibility of uniting customers for joint procurement. In addition, the author discusses the problems associated with the registry of unscrupulous suppliers and suggests improved approaches to limiting access to procurement.

Strategies Supporting the Enhancement of Adherence to Procurement Standards by the Kwa-Zulu Natal Department of Health

Purpose: Regardless of the reforms and the employment of Supply Chain Management (SCM) as a strategic tool, South Africa still faces immense challenges in its procurement practices. Non-compliance with public procurement guidelines cannot be ignored because it has a significant cost to the government and the public as taxpayers. Methods: Mixed methods of data collection were employed in this paper to gather information from the relevant decision-makers and officials in finance and the SCM component. She found that unavailability of SCM staffing norms, shortage of staff, lack of supervision, shortage of skills, unavailability of an E-procurement system, and negligence are major determinants for non-compliance. Results and Conclusion: These findings have relevance for the Kwa-Zulu Natal Department of Health and also for the South African Public Sector as it strives to achieve a clean audit on procurement and contract management. Research implications: The Auditor General’s reports for the financial year 2017/2018 and 2018/2019 confirmed that this Department had received qualified audit opinions for two consecutive years for incurring irregular expenditure on procurement and contract management following non-compliance with procurement guidelines. Originality/value: This paper examined the possible actions to improve the Kwa-Zulu Natal Department of Health's adherence to procurement standards.