Procurement Practices Research Articles

Institutional Transformation of Proactive Environmental Characteristics of State Procurement into Imperative Ones: The Regional Case

Ensuring sustainable economic development, environmental protection, and conservation of natural resources are the top priorities of the new edition of the "National Security Strategy of the Russian Federation". One key aspect highlighted in the strategy is the significance of green public procurement, which plays a crucial role in reducing the environmental impact of human activities and promoting environmentally responsible behavior among companies. The lack of established regulatory mechanisms and the ongoing debates surrounding the concept of "green procurement" have prompted the research objective of identifying the factors influencing the successful implementation of green public procurement through econometric modeling. The goal is to assess how well public contractors are currently implementing green procurement practices and to develop strategies to enhance their adherence to these practices by 2023, particularly within the Southern Federal District. An analysis of existing literature has revealed gaps in scientific knowledge, particularly in the realm of comparing the actualization of green economy institutions in regional strategies and monitoring the implementation of green procurement within the Southern Federal District. These research issues will guide the comparative assessment of green economy institutions, monitoring of green procurement practices, and structuring of data within the study. The study will rely on statistical data obtained from the Unified Information System for procurement, using keywords related to the environmental sustainability of purchased goods to analyze the trends in green public procurement practices. Through this research, recommendations for the institutional transformation of green procurement practices into a must-follow standard for public contractors will be developed.

OPTIMIZING PROJECT TIMELINES: THE IMPACT OF E-PROCUREMENT IN ACCELERATING PUBLIC SECTOR PROJECTS IN NIGERIA

Purpose: E-procurement is recognized globally as a tool for enhancing efficiency and transparency, with major intergovernmental bodies advocating its adoption. This study investigates the impact of electronic procurement (e-procurement) on project completion times in the Nigerian public sector. The research focuses on e-tendering, e-invoicing, and e-sourcing, hypothesizing their effects on project completion times. Theoretical Framework: The study employs a conceptual framework highlighting the interplay between e-procurement practices and government policies. Theoretical frameworks, including Innovation Diffusion Theory and Technology Acceptance Theory guided the study. Design/Methodology/Approach: The study adopted a descriptive survey research design to collect primary data from 361 procurement staff from four agencies in Abuja using a structured questionnaire. Data collected were analysed using descriptive statistics and multiple regression analysis. Findings: The results indicate a positive relationship between e-procurement practices and project completion times, with e-invoicing having the most significant impact. However, the introduction of government e-procurement policies as a variable diminishes the individual effects of e-tendering, e-invoicing, and e-sourcing. Research, Practical & Social Implications: The study established a positive relationship between electronic procurement practices and project completion times, with higher implementation levels resulting in shorter project durations. However, organizations should evaluate their impact, balance oversight and efficiency. Originality/Value: By focusing specifically on the Nigerian public sector, testing clearly defined e-procurement elements, collecting robust primary data, and generating new context-specific evidence, this study makes an original, timely and valuable contribution to knowledge on the impact of e-procurement adoption.

Hunting, foraging and the pursuit of animal ontologies

Climate change and the ecological crisis are fueling growing critiques of human exceptionalism within calls to reconfigure human-nature relations. This paper explores how some self-provisioning hunters and foragers in Victoria, Australia are invoking animal ontologies within their attempts to decenter the human and create sustainable, emplaced lifestyles and diets. For this cohort, hands-on food provisioning serves as a means of re-constructing the human as animal through the embodied physicality of food procurement practices, and the multispecies engagements and intimate understandings of local ecosystems these practices entail. Meat eating remains a complex ethical conundrum, however, and I examine how their conceptualizations of the human as animal serve also to justify their killing for food. This is evident in self-provisioning hunters’ construction of the embodied human as both predator and prey and through their desires for reciprocity through the eventual return of their own bodies to the food chain within their local ecosystems.

Public procurement and innovation policy in Russia: a perspective of narrative economics

Objective: to identify narratives describing the use of public procurement system for innovation policy implementation and to critically analyze them.Methods: quantitative analysis of the frequency of narratives, qualitative analysis of narratives to identify protomodels, institutions and social context.Results: in the modern Russian economic system, public procurement is used as a tool for implementing the national innovation policy. The analysis of legal acts regulating public procurement of innovative and high-tech goods showed the trends that potentially reduce the variability of procuring entities' actions and the transparency of procurement procedures. Based on the tools of narrative economics, the authors analyzed the attitude of actors (representatives of the state, business and academia) of the Russian innovation system to the existing practice of public procurement in the context of the national innovation policy. As a result, the work presents a typology of public procurement problems, discussed in mass media, for Russia’s innovative development.Scientific novelty: the considered narratives show that, in relation to the Russian innovation system, the public procurement subjects can act in the logic of the “principal-agent” theory, while the tendency to reduce transparency is welcomed by some actors.Practical significance: institutional analysis of the recent changes in public procurement, including the rules governing the procurement of innovative and high-tech products, has revealed the devolution of formalized rules aimed at the implementation of state innovation policy. Together with the increased level of privacy in organizational activities of procuring entities, this carries the risks of not only increasing the level of opportunistic behavior of the public procurement market subjects, but also decreasing confidence in the entire public procurement system.

The Effect of Procurement Practices on the Public Project Performance: The Case of North Showa Zone, Oromiya Region, Ethiopia

The overall objective of this study was to assess the effects of procurement practices on the performance of public projects in the case of North Shoa Zone. The specific objectives of the study were, to find out the effects of procurement planning, supplier selection process, procurement contract management and procurement staff competency on the performance of projects. The study took a quantitative research approach and explanatory research design. A census sampling technique was employed to select 114 employees related to project procurement practices and project management as respondents. All of the questionnaires were submitted back for analysis, representing a response rate of 100%. A structured questionnaire was administered to collect data from the respondents. The data was finally analyzed using Statistical Package for Social Sciences (SPSS) V.28 to compute descriptive statistics such as the mean and standard deviation and inferential statistics like Pearson’s correlation analysis to obtain findings vital for the research study. In addition, regression analyses were conducted to estimate the average effects of procurement practices on public project performance. Majority of the respondents indicated that procurement practices affect project performance to a large extent. The regression analysis result indicated that procurement planning, supplier selection process, procurement contract management, and procurement staff competency had significant positive influence on performance of projects. The analysis further revealed that the four independent variables in this study accounted for around 68 % of change in project performance. It therefore recommended that implementing procurement practices effectively helps to improves projects performance.

Bulacan Feedmill Plant Towards Business Operations Sustainability Framework

In today’s rapidly changing global landscape, businesses are increasingly recognizing the imperative of incorporating sustainability principles into their operations. As the world faces pressing environmental and social challenges, companies must evolve and adopt responsible practices that not only safeguard the planet but also ensure long-term profitability and resilience. The Bulacan Feedmill Plant, a key player in the animal nutrition industry in the Philippines, is no exception to this paradigm shift. As such, this research delves into the realm of sustainable business operations, with a specific focus on developing a comprehensive Business Operations Sustainability Framework tailored to the unique context of the Bulacan Feed mill Plant. Amidst the growing global discourse on sustainable practices, there is a perceived gap in the literature concerning the application of sustainability principles within the animal nutrition industry, particularly in the context of Feedmill plants. While various frameworks exist for other industries, limited attention has been given to developing tailored sustainability frameworks for the animal nutrition sector. Hence, this research endeavors to bridge this gap and contribute to the body of knowledge by providing a comprehensive and industry-specific roadmap for the Bulacan Feedmill Plant, paving the way for a more sustainable and thriving future. Based on the findings, the following are recommended; 1) Develop a comprehensive Business Operation Sustainable Framework aligned with sustainability principles, including clear goals, strategies, and actionable plans for economic, environmental, and social sustainability. 2) Engage and educate employees through awareness programs, training, and workshops to ensure their understanding of the importance of sustainability and their role in driving positive change within the organization. 3) Actively involve customers in sustainability initiatives by providing information about sustainable products and encouraging them to make environmentally conscious choices. 4) Prioritize sustainable procurement practices by collaborating with suppliers who adhere to sustainable principles to ensure an environmentally responsible and socially conscious supply chain. 5) Engage with local communities, listen to their concerns, and involve them in sustainable development projects to foster mutual understanding and support. Keywords: sustainability framework, business operations, feed mill plant, sustainability strategy

Improving The Domestic Product Use Policy For Ministerial Procurement In Indonesia

The objective of this study is to devise an evaluative framework, encapsulated as a checklist of inquiries, aimed at refining the implementation of Domestic Product Utilization Policies (P3DN). This investigation addresses the conspicuous absence of a structured framework for evaluating the enforcement of P3DN within the context of governmental procurement activities across ministries and institutions in Indonesia. Employing a qualitative methodology, this study undertakes thematic analysis of the regulations governing the procurement of goods and services. This analysis is enriched by insights derived from interviews with procurement specialists, contributing to the framework's development. The evaluative mechanism is predicated on a “value for money” paradigm, assessing the procurement process in terms of inputs, outputs, and outcomes to anchor the framework's evaluative criteria. The research contributes to the creation of a comprehensive checklist, envisioned as a practical tool for ministries and institutions to systematically appraise the implementation of P3DN within their procurement processes. From an academic standpoint, this research advances scholarly understanding in the domain of public procurement management, contributing a novel evaluative instrument that enhances both theoretical and practical approaches to policy assessment within the public sector's procurement practices.

Risk of Modern Slavery in the University Supply Chain

This research project aims to identify the risk of modern slavery in the University of Otago’s supply chain and to advise the procurement department on how to address this risk. Modern slavery legislation in New Zealand is anticipated in the near future and the University of Otago must be prepared to meet their obligations under this law. This report introduces and advises on four proposals of varying cost and practicality that the University of Otago may implement in their procurement operations. Data to inform these proposals was gathered through interviews conducted with experts, and through a questionnaire sent to all of the University of Otago’s suppliers. These findings not only inform the University’s procurement practices but also contribute to broader discussions on corporate responsibility and supply chain ethics. By anticipating and proactively addressing modern slavery risks, the University of Otago sets a precedent for ethical procurement practices in the academic sector and beyond. Supervised by: Ray O’Brien, Stephen Hall Scholarship Project Funded by: University of Otago Procurement Department

Effect of Strategic Procurement Practices on Performance of Kenya Power and Lighting Company in Mombasa County

The Procurement and disposal Act, of 2015, gives guidelines and power to parastatals to ensure that the procurement process is fair and efficient for the participants. However, there have been procurement irregularities in KPLC that have caused a massive financial haemorrhage. The purpose of the study was to examine the effect of strategic procurement practices on performance of Kenya Power and Lighting Company in Mombasa County. The specific objectives were to determine the effect of outsourcing, negotiation, tendering, and inventory control on performance of Kenya Power and Lighting Company in Mombasa County. The study had the resource-based view theory and transaction cost theory. It used a research approach and descriptive research design on a target population of 113 staff of four KPLC offices located in Mbaraki, Mombasa CBD, and Nyali. This study selected the staff using census method and issued questionnaires to all the respondents. The secondary data was generated from income statements and cash flow reports dating from 2020 to 2022. The questionnaire was pre-tested at the KPLC Kilifi county office. Face, content, and criterion validity were measured whereas Cronbach alpha was used to measure reliability. Descriptive statistics like frequencies, mean and percentages were analysed. The study used a thematic method to analyse the open-ended questions and tables, and explanations as main methods of data presentation. The study’s finding on outsourcing practice was that there was occurrence of delays in providing urgent services and products. On negotiation practice, KPLC’s negotiation process was affected by corruption by rogue staff with selfish interests. On tendering practice, there was low incorporation ICT into the tendering process. On inventory control methods, there was inconsistency of policy systems towards guiding quality warehouse management. The study recommendations on outsourcing practice are that the procurement department management conducts a thorough check on the potential products and services outsourced. On negotiation practice, KPLC senior management should develop and implement anticorruption policies on corrupt staff. On tendering practice, senior management should provide funds, increase awareness, and strengthen the ICT implementation policies. On inventory control practice, the procurement department staff undergo training on warehouse management and disposal management.

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.

THE NATURE OF THE IMPLEMENTATION OF PUBLIC PROCUREMENT OF GOODS AND SERVICESIN THE PROVINCE OF SOUTH SULAWESI

Objective: This study aims to delve into the core of government procurement implementation in South Sulawesi Province, Indonesia. The primary objective is to comprehensively understand the dynamics, challenges, and outcomes of the procurement process. The research seeks to identify critical factors influencing the effectiveness of procurement practices and propose recommendations for improvement. Theoretical Framework: Built upon a framework that combines elements from public administration theory and legal perspectives, this research explores the intricate nature of government procurement. The theoretical underpinning incorporates aspects of administrative law, public policy, and governance to provide a holistic view of the implementation process in the context of South Sulawesi Province. Methodology: Utilizing a mixed-methods research design, this study employs both quantitative and qualitative approaches. Quantitative data is collected through surveys and analysis of procurement records, offering statistical insights. Concurrently, qualitative data is gathered through interviews with key stakeholders, including government officials, suppliers, and experts, providing nuanced perspectives on the implementation challenges and successes. Results and Conclusion: The quantitative analysis sheds light on the efficiency and effectiveness of government procurement practices in South Sulawesi Province. Findings from the qualitative phase uncover contextual insights, contributing to a deeper understanding of the challenges faced by stakeholders involved in the procurement process. The research concludes with recommendations to enhance transparency, accountability, and efficiency in government procurement. Originality/Value: This research contributes to the field by providing an in-depth analysis of government procurement implementation in a specific regional context. The integration of legal and administrative perspectives enriches the theoretical understanding of the procurement process. The study's findings offer practical implications for policymakers, procurement practitioners, and academics, emphasizing the need for tailored strategies to address the unique challenges faced in South Sulawesi Province.

The Role of Procurement Practice in Shaping Competitive Advantage

The Role of Procurement Practice in Shaping Competitive Advantage

Sustainability Criteria and Practices in Electro-Electronic Purchases by Ifect In the Northern Brazil Region

Objective: this study aims to verify the adoption of sustainable rating criteria and practices in the acquisitions of electrical and electronic equipment (EEE) from the Federal Institutes of Education, Science and Technology (IFECT) in the north of Brazil. Theoretical Reference: The work is based on sustainable public acquisitions as an inducer of sustainable development, through the adoption of sustainability rating criteria and practices in acquisitions of public institutions. Method: This research was characterized as exploratory and has used a qualitative approach, to verify the adoption of rating criteria and sustainable practices in the acquisition of EEE from the IFECT, through a documental analysis in the documents of the planning phase of the acquisitions. Results and conclusion: data analysis revealed that the adoption of sustainability rating criteria and practices in IFECTs EEEs acquisitions is still very unsatisfactory. However, it showed a slight improvement between 2018 and 2021 and demonstrated that some IFECTs have more consolidated hiring plans. However, the need for improvements in all IFECTs, especially IFAM and IFPA. Implication of the research: the research makes explicit, through its results, the need to identify the factors that hinder the adoption of sustainability rating criteria and practices in public procurement, as well as the need for advances in this field. Originality/value: the research sought to demonstrate the important role and impact that public acquisitions has on sustainable development, in addition to the need to advance in the actions taken so that public sustainability policies are effective in procurement processes.

Procurement hurdles: unveiling challenges in the subsidized commuter bus sector of Gauteng, South Africa

In South Africa, like many developing countries, procurement is seen and used as a strategic tool to promote socioeconomic development, including the promotion of competition, among other objectives. The South African commuter bus industry is structured to procure – through competitive tendering – SMMEs within the industry’s mainstream. These contracts are subsidized by the government – their origins date back to the 1940s – to ease the financial burden on black African communities. However, since its establishment, some challenges are hindering the effective procurement of these services, thus affecting the provision of these services. This paper highlights the challenges faced by Gauteng Province in the procurement of subsidised commuter services. The paper employs a mixed-methods research approach, and the research instrument was a face-to-face semi-structured interview questionnaire. Based on the findings of the study, Gauteng commuter bus industry operations are challenged with poor policy implementation, a lack of funds to support the industry’s operational needs, and a deficiency in administrative skills, among other challenges. The paper recommends that the Gauteng government revisit the guiding policies for the establishment of the industry and employ the best procurement practice(s) for this industry, considering the complex nature of South Africa (being influenced by the apartheid era and the government is faced with maintaining a balance between the blacks and the whites among citizens).

Assessing the impact of procurement practice on organizational performance

Assessing the impact of procurement practice on organizational performance

Level of awareness and knowledge of procurement officers on environmental sustainability as enshrined in the Public Procurement Act in Ghana

PurposeThis study aims to assess the awareness and knowledge level of procurement officers (POs) in Ghanaian tertiary educational institutions regarding sustainability in general and specifically on environmental sustainability in the Public Procurement Act 2003 (Act 663) as amended.Design/methodology/approachThrough purposive sampling technique and face-to-face interviews using semi-structured open-ended questions, qualitative data was collected from 19 POs who are well vested in the procurement profession and willingly agreed to partake in the research. The qualitative data were analyzed using content analysis technique to help organize and elicit meaning from the data collected and to draw realistic conclusions from it.FindingsThe results showed that most POs were aware of the Public Procurement Act 2003 (Act 663) as amended, primarily through seminars and workshops organized by the Public Procurement Authority. The interviewees demonstrated a good understanding of sustainable procurement, considering its social, environmental and economic aspects. However, one respondent primarily associated sustainability with only environmental issues. The POs were, however, of the view that the Amended Act 914 (2016) does not give detailed highlights on environmental sustainability, making implementation very difficult, especially regarding the procurement of goods. Overall, the findings indicate a positive level of environmental sustainability awareness and knowledge among the interviewed POs regarding the Public Procurement Act 2003 (Act 663) as amended.Social implicationsThe findings from the study could be used by policymakers to strategize educational campaigns by using the POs’ knowledge and awareness to the implementers of Act 663 (2003) as amended to effectively ensure environmental sustainability in procurement practices. The findings from the study have also contributed to the literature on procurement policy by drawing the attention of policy formulators to give equal attention to all the sustainability pillars, i.e. social, economic and environmental. This would consequently help the implementers to contribute to achieving sustainable development.Originality/valueThis study is one of the few empirical qualitative types of research seeking the views of POs in tertiary educational institutions in Ghana on sustainability and environmental sustainability as enshrined in the Public Procurement Act 2003 (Act 663) as amended. The findings give positive feedback to policymakers on the knowledge and awareness level of the POs on environmental sustainability and highlight the importance of awareness programmes and educational initiatives by the Public Procurement Authority and other stakeholders to ensure compliance with the Act.

Procurement Practices and Performance of Private Universities in West Nile, Uganda

This study examined the effect of procurement practices on the performance of private universities in West Nile, Uganda. Five private universities dully accredited by the National Council of Higher Education were analyzed. Using simple random sampling technique, a sample size of 140 employees was used. Data were sourced using a structured questionnaire. Analysis was conducted using both SPSS and SEM. The findings revealed that contract management is a significant precursor of private university performance. While unexpectedly, procurement planning and supplier selection proved to be statistically insignificant predictors of private university performance. Practically, this study will help private university owners improve performance by embracing practices such as contract inspection, documentation, relationship management, good communication and contract performance measurement. Additionally, given the need for improved performance of private universities in West Nile in particular, and Uganda in general, this study offers the understanding of a holistic view of performance from the procurement perspective and this is relevant for academicians.

The role of risk management practices in IT service procurement: A case study from the financial services industry

This study investigates the risks of service procurement and the role of risk management practices during service procurement processes for IT services. As a result, the study provides a typology for understanding risk in the IT service procurement context. The findings indicate that several practices related to risk management during the service procurement process are important in reducing the probability and impact of risks. The study shows how a collaborative approach to risk management with service providers is also necessary to manage service disruptions. As such, the results of the study exemplify how risk management practices can support the procurement process for services. Based on the practice-based view, this study provides an explorative framework and propositions for enhancing service performance through the adoption of risk management practices.

조달계약과 불공정 조달행위로 인한 부당이득 환수

For fairness of procurement the other party to the procurement contract is obligated not to falsely submit bidding-related documents, to directly produce, to indicate the country of origin, to comply with contract standards, and to keep the contract price equal to or lower than the market transaction price. Violations of these obligations are called unfair procurement practices. In case of unfair procurement practices, the other party may be subject to sanctions such as prohibition of participating in bidding. However, it is necessary for Public Procurement Service(‘PPS’) to redeem the profits obtained from the procurement contract, because it is not reasonable to allow the other party to hold the profits from the procurement contract despite unfair procurement practices.
 The PPS's special terms for the procurement contract include provisions that require profits to be redeemed if unfair procurement practices are recognized. Since the special terms are the contents of the procurement contract, the state and the other party have eventually made an agreement to return the profits obtained from the procurement contract in the event of unfair procurement practices. In accordance with these profit redemption clause, PPS has recovered the other party’s profits in cases of unfair procurement practices. However, as the court interpreted the profit redemption clause as damages for a breach of contract, it was difficult for PPS to redeem the profits if it fails to provide sufficient evidence to prove damages caused by unfair procurement practices.
 The legal nature of the redemption of profits due to unfair procurement practices should not be regarded as restitution for unjust enrichment or damages for a breach of contract under civil law. If the redemption of profits is the restitution of unjust enrichment under civil law or the damages for a breach of contract, the parties to a contract do not need to make an agreement for the redemption of profits, because even if there is no clause for redemption clause, it is possible to claim the restitution of unjust enrichment or damages for a breach of contract under the civil law. A penalty clause is made when it is difficult to prove or calculate the damages caused by the breach of contract. Although it is clear that the other party to the procurement contract benefits from unfair procurement practices, it is difficult to prove the damages caused by unfair procurement practices. A redemption clause should be regarded as a penalty clause for the difficulty of proving damages. If the redemption clause is regarded as the restitution of unjust enrichment or damages for the breach of contract, PPS is unable to redeem the profits because the profits of the other party does not correspond to damages of the state. In that case the other party is able to hold the profits of the procurement contract despite unfair procurement practices. In order to prevent these results, the legal nature of the redemption clause should be recognized as a penalty clause.
 Recently, “Government Procurement Act” has established a basis for the redemption of profits, and the PPS also claims the redemption clause as a penalty clause, and the court recognizes the right to claim the return of profits. Special terms for the procurement contract no longer use the expression of unjust enrichment and specify that the other party is required to pay the amount based on the calculation clause of penalties in the case of unfair procurement practices.
 It is now possible to claim that the legal nature of the redemption clause is a penalty clause through the revision of the Government Procurement Act and special terms for procurement contract, and changes in precedents. From now on the focus needs to be on the category of unfair procurement practices and an elaborate calculation of the profits of the other party who has caused unfair procurement practices.

Interplay of Green Construction Procurement and Logistic Service Innovation: Advancing Sustainable Economic Growth and Sustainable Development Goals

This paper seeks to explore in great depth the green construction procurement influence to green logistic services, creative activities as well as their general contribution towards economic sustainable growth. Quantitative methodology was used in this study where data collection was through survey to the engineers and project managers under construction projects. The study, hence, critically tempts to examine towards environmentally responsible procurement enhanced services towards transportation as well as the developments of new and sustainable solutions in detail.The major findings indicated towards a high significant correlation between green procurement practices and enhancement of green logistic services particularly in sustainable material handling and transportation. Moreover, green purchasing is shown to considerably boost sustainability-related product and process innovation. The research points out the need for green logistic services in contributing to Sustainable Development Goals (SDGs) through the green construction procurement and emphasis on management and innovation of the services effectively.The study identifies that self-administered surveys limit inclusion while focus within a specific demographic creates further limitation, thus suggesting necessity for further research to understand the long-term effects of green procurement and logistics over SDGs.