Impact of e-procurement: Experiences from implementation in the UK public sector

The advent of the Internet as a business systems platform has been a catalyst for major changes in the operation and status of organizational procurement. Early e-procurement literature forecast significant improvements in procurement costs, an improving status of the purchasing function, and changes to the structure of supply markets. Our study seeks to evaluate the validity of these forecasts through the development of a structural model of the ‘e-procurement effect’. This model is intended to define the dynamics of the e-procurement process in an organization and provide a foundation for a research stream into the transformational effect of e-procurement deployment.

The article presents the evaluation of e-procurement implementation and operation from an 18-month study of e-procurement deployment across nine UK public sector organizations. The article explores five key themes in e-procurement, namely system specification, implementation management, changes to organizational characteristics, changes in total acquisition costs, and changes to governance structures.

Our analysis suggests that the proposed structural model of the e-procurement effect is broadly applicable and that many of the previous claimed benefits in the literature can be realized. We also contend that an important variable for the success of e-procurement adoption is to address the internal service quality attributes of e-procurement processes—a topic which offers significant scope for future research.     

Preventing rather than punishing: An early warning model of malfeasance in public procurement

Is it possible to predict malfeasance in public procurement? With the proliferation of e-procurement systems in the public sector, anti-corruption agencies and watchdog organizations have access to valuable sources of information with which to identify transactions that are likely to become troublesome and why. In this article, we discuss the promises and challenges of using machine learning models to predict inefficiency and corruption in public procurement. We illustrate this approach with a dataset with more than two million public procurement contracts in Colombia. We trained machine learning models to predict which of them will result in corruption investigations, a breach of contract, or implementation inefficiencies. We then discuss how our models can help practitioners better understand the drivers of corruption and inefficiency in public procurement. Our approach will be useful to governments interested in exploiting large administrative datasets to improve the provision of public goods, and it highlights some of the tradeoffs and challenges that they might face throughout this process.     

What is the value of an IT e-procurement system?

E-procurement is gaining in popularity in business practice and its benefits encourage its adoption for a variety of areas, including IT (Information Technology) purchases. The problem with assessing the value associated with e-procurement has been addressed by researchers and practitioners, but a clear methodology to determine the benefits related to e-procurement adoption is still missing, especially for IT. This paper defines e-procurement and identifies the six most significant drivers for e-procurement adoption, which are the pillars of the proposed value assessment methodology. The authors have also applied the developed methodology to real cases in order to verify its validity and robustness. Finally, although the developed model takes into account the peculiarities of IT purchases, it also raises more research opportunities for other purchasing categories.     

New Forms of Local Governance

Abstract

This article seeks to identify which factors lead local governments to use corporate public sector organizations, particularly municipal corporations, for service delivery. The authors argue that local officials trade off bureaucratic costs of in-house production with agency costs of external delegation to municipal corporations when deciding how to deliver local public services. Econometric models are employed to test this explanation for the adoption of municipal corporations by 278 Portuguese local governments. The results indicate that organizational size, financial independency and fiscal surplus, as well as ideological concerns and the activity of local interest groups, drive choices of local governance structures.     

Addressing the sustainable development through sustainable procurement: What factors resist the implementation of sustainable procurement in Pakistan?

Sustainable Public Procurement is an integral part of sustainable development because of ever increasing government expenditures. Most of the developing countries lack the required infrastructure which may support public sector sustainability. The aim of this study is to assess the critical factors which resist the implementation of sustainable procurement in public sector of Pakistan. We used Interpretive Structural Model to investigate and rank the interrelationships among different factors of sustainable procurement. With the help of literature and Likert scale instrument, we found twelve key barriers that resist sustainable procurement implementation. We also examined tender documents of 75 different public sector universities of Pakistan but found absence of sustainability element in the documents. External factors namely government legislation and stakeholders' pressure are found most critical barriers as compared to inter organizational factors. The study is also important to highlight the hurdles in the way of sustainable development. First, the government must introduce rules and regulations to implement the sustainable procurement. Stakeholders and donors must put pressure on organizations for adopting sustainable procurement. Sustainability education should be made mandatory part of curriculum and employees should be given regular training on sustainability. Further, public procurement policies at government and institutional levels are required to be revisited towards a circular economy.     

Robotic Process Automation in purchasing and supply management: A multiple case study on potentials,barriers, and implementation

Robotic Process Automation (RPA) has received growing attention within the digital transformation as this cutting-edge technology automates human behavior and promises high potentials. However, the adoption in purchasing and supply management (PSM) is still in its infancy and has hardly been explored, particularly in the public sector. Based on a multiple case study including 19 organizations of the public and private sector, this paper narrows that gap and presents comprehensive insights into potentials, barriers, suitable processes, and best practices and components for RPA implementation. The findings indicate that adoption depends on the organizations’ digital procurement readiness and maturity. Application areas of RPA enlarge with increasing experience and range from transactional and operative tasks within the procure-to-pay process to more strategic use cases in sourcing and supply relationship management. Potentials mainly comprise employee reliefs, cost savings, and increased operational efficiency and quality. We uncover multiple technical, organizational, and environmental barriers related to IT infrastructure and human resources, internal communication, financial resources, top management support, organizational structures, supplier-related issues, and government regulations. Furthermore, our study indicates several differences between the private and public sectors for RPA implementation. We outline implications for the emerging research on RPA and pivotal directions for organizational practice.     

Do Codes of Conduct and Ethical Leadership Influence Public Employees’ Attitudes and Behaviours? An experimental analysis

Corruption, political scandals, and the spreading adoption of management practices in the public sector contribute to a decline in public trust. Worldwide initiatives promoting good governance can be observed. At an organizational level, management of ethics has gained in importance as codes of conduct and ethical leadership are promoted. However, public management research has hardly analysed the impacts of these measures. To address this research gap, we conduct a between-subjects experiment among public administration employees. Our results reveal that only ethical leadership has a positive effect on employees’ organization-related attitudes. Our findings suggest avenues for further research.     

E-procurement adoption by European firms: A quantitative analysis

We explore country differences in adoption of electronic procurement. Data are used from the EU-initiated e-Business W@tch survey 2003. Analyses are conducted on 3475 organizations from seven different European countries that were stratified according to nine different sectors and three size categories. It appears that there indeed are country differences with respect to e-procurement adoption, and that firms from countries with a low uncertainty avoidance such as Germany and the UK are the early adopters of e-procurement, while countries that are less reluctant to change such as Spain and France have lower adoption rates.     

Characteristics of Portuguese public‐sector project managers: Toward closing the effectiveness gap

Using a sample of 102 Portuguese public‐sector officials with project management experience, this study examines the characteristics of effective project managers in the Portuguese public sector. Factor‐analysis procedures are used to identify the factors related to areas of knowledge relevant to effective project management. The results appear to stress the increasing importance of people, organizational, and leadership skills in the effective management of today's complex and dynamic projects.     

Effect of purchase volume flexibility and purchase mix flexibility on e-procurement performance: An analysis of two perspectives

Despite the widespread adoption of e-procurement by firms in recent years, academic research examining the mechanisms through which e-procurement applications lead to performance has been scarce. Anecdotal evidence points to numerous situations where companies have failed to harness the potential of e-procurement. In this paper, we argue that online purchase volume and mix flexibilities facilitated by these applications play a significant role in the ability of firms to benefit from e-procurement. We examine this tenet from both an economic as well as a social perspective. We propose that increased online purchase volume flexibility as well as online purchase mix flexibility can be facilitated by two mechanisms – supplier customization as explained by transaction costs perspective, and information sharing between supply chain partners using a social exchange theoretical perspective. The increased purchase volume and mix flexibility in turn leads to better performance along the dimensions of cost, quality, and delivery. We present and test a nuanced perspective where we argue that (i) the effect of supplier customization on both purchase volume and mix flexibilities will be moderated by the frequency of transactions conducted online, and (ii) the effect of information sharing on both purchase volume and mix flexibilities will be moderated by trust in the supplier. We estimate our research model using survey data collected from 130 purchasing and procurement managers. We find strong support for our proposed research model with results indicating that purchase volume and mix flexibilities play a vital mediating role in impacting e-procurement performance. Theoretical and practical implications of the findings are discussed.     

Sustainable procurement in Malaysian organizations: Practices,barriers and opportunities

The purpose of this study is to uncover the extent of sustainable procurement practices amongst procurement directors/managers employed in public and private sector organizations in Malaysia, a developing country where socialization is underpinned by religious beliefs. The results showed there is a significant variation in the adoption of sustainable procurement across the sectors with the private sector registering significantly higher levels of SP practices than their public counterparts. Lack of awareness posed the most significant barrier to sustainable procurement implementation regardless of organizations or sectors whilst improved working conditions, an organization׳s/council׳s/public image, and organizational efficiency and transparency provided optimal opportunities for implementing sustainable procurement practices. Finally this study identified the two new factors of religion and sense of humanity as influencing an employee׳s engagement in sustainable procurement practices.     

A return to incomes policy?*

The Government's continuing difficulties in controlling the money supply and determination to use cash limits to control the level of public sector pay settlements have renewed cause for a return to a form of incomes policy covering both the public and private sectors. In this article Brian Towers examines the nature of incomes policy and the importance of comparability and collective bargaining structure in its implementation and discusses the form which a viable future policy should take.     

Public sector purchasing of health services: A comparison with private sector purchasing

Recent research has highlighted the existence of important differences between public and private sector procurement practices. Drawing on established transactional and relational conceptual frameworks, this paper examines whether the differing environments confronting public and private sector organisations affects procurement practices. By focusing solely on occupational health services as an example of a complex business service, the research allows the influence of environmental factors, notably policy drivers, to be considered across both public and private sector settings while service specific factors remain largely constant. Utilising a combination of questionnaires and in-depth interviews the research suggests that policy drivers had a major bearing on procurement practices adopted in the public sector, resulting in a very different pattern of engagement with service providers from that prevailing in the private sector. Specifically whereas private sector organisations utilised a range of approaches, which can broadly be classified as relational in nature, public sector organisations almost exclusively relied on transactional-based approaches. The nature of these services suggests that relational based procurement constitutes the optimal approach to the acquisition of such services. However, for public sector organisations the perceived restrictions imposed by public policy on procurement practices resulted in the adoption of an approach which can be viewed as resulting in sub-optimal outcomes.     

‘What problems you got?’: managerialisation and union organising in the voluntary sector

This article explores how government public service modernisation policies have impacted on management practices and employment conditions in voluntary sector welfare organisations and the problems unions have encountered in responding to such impacts in the context of public service modernisation. The study finds that employees encounter problems developing workplace union organisation and unions face problems developing a coherent strategy on support for the sector and for resisting public sector reform, which hinders trade union resistance. The implications of this may be important in strengthening managerial control over the public service labour process.     

欧盟公共与私营电子采购标准化要求异同初探

电子采购的兴起,逐渐革新了传统的采购模式,大大地提高了效率,节约了成本。欧盟是电子采购制度建设较早的地区之一,且渗透到私营和公共采购领域。为了提高公共与私营电子采购之间的兼容性,2005年2月欧洲标准化委员会（CEN）正式发布了《欧盟电子采购标准化要求和差距分析》（CWA15236）。文章将根据《欧盟电子采购标准化要求和差距分析》（cwA15236）,以现有的法律、标准规范和技术为基础,分析欧盟公共与私营电子采购在法律层面、程序层面和技术层面的主要异同点,同时提出了相关建议。     

The role of quality in e-procurement performance: An empirical analysis

While the adoption and use of e-procurement has been prevalent in supply chain management, there is very little research examining the critical role of quality in this context. e-Procurement promises to cut operational costs all across the supply chain, but it also raises the expectations of buyers posing a challenge for buyer satisfaction and supply chain performance. Using the theoretical lens of Dynamic Capabilities Theory and Resource-Based View, we postulate that online information and process act as resources that result in logistics fulfillment capabilities. These capabilities in turn lead to satisfaction with e-procurement. We estimate our research model using structural equation modeling with survey data collected from 131 purchasing and procurement managers. We empirically examine these linkages by analyzing data collected from procurement managers. Our results indicate strong support for the relationships between information flow process quality, logistics fulfillment quality processes, and e-procurement satisfaction performance. One of the surprising findings of our study is that fulfilled order timeliness has a significantly greater impact on satisfaction than fulfilled order accuracy. This finding points to the increasingly important role that the dimension of time plays in today's competitive environment.     

Multifactor productivity and its determinants: an empirical analysis for Mexican manufacturing

The aim of this paper is twofold. First, we estimate production functions for the Mexican manufacturing sector and for 14 comprehensive groups, allowing us to construct various measures of multifactor productivity. Second, we analyse some of the determinants of productivity growth. We find that, on the one hand, there is a positive relationship between market concentration and technology adoption; on the other hand, both technology adoption and human capital promote productivity, whilst market concentration exerts a negative influence on it. Our results suggest that, once controlling for the effect on technology adoption, more concentration impacts negatively productivity growth.     

Developing and implementing an environmental performance index for the Portuguese military

At an international level, the implementation of environmental management practices in military facilities is now a growing reality, particularly with the implementation of environmental management programmes and/or systems. The main goal of this research was to assess the Portuguese military sector's environmental performance through an index – the MEPE index – in a simplified and useful manner. A second goal was to measure the units' self‐assessment against the environmental profile of the military sector as evaluated through the index, to determine how far they match. The index was deeloped on the basis of the data obtained in a national questionnaire, which was carried out to evaluate environmental practices adopted by military units. Results show that the Portuguese military's overall environmental performance is poor, reflecting that this is quite a new issue in military organizations. Among the military branches the Air Force reveals the best environmental results. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Examining public service motivation in the voluntary sector: implications for public management

Building on research about the nature of public service motivation (PSM) and its application outside the public sector, the authors provide a qualitative-based examination of PSM’s relevance to voluntary sector employees. In doing so, they explore how far their motivations extend beyond those encompassed within current conceptualizations of PSM and whether PSM research can be enriched through the adoption of qualitative methodologies. The findings suggest that PSM accounts for some, but not all, of the motives of voluntary sector employees and indicate that public sector managers involved in outsourcing public services need to be sensitive to their distinctive features.     

Factors attracting online consumers to choose e-Malls for e-procurement in Saudi Arabia

ABSTRACT

A large segment of consumers prefer e-procurement because it provides several advantages such as a variety of options and lower prices. The business-to-consumer approach is spreading on a global scale, but its role is limited in countries such as Saudi Arabia due to the size and strength of the economy. Saudi Arabia has the fourth highest level of economic growth in the Middle East and ranks 38th globally in terms of Internet infrastructure. Its rate of Internet growth is 12% yearly, and 40% of the population has access to the Internet. The volume of online trade in Saudi Arabia was USD 800 million in 2012, and 56% of this amount was for purchases through foreign websites.The end consumers are one of the most important target segments of small- and medium-sized enterprises (SMEs), which constitute 90% of Saudi Arabian companies. These companies face limitations in establishing e-procurement channels because these channels require financial support beyond their funding capabilities. Therefore, one of the best low-cost solutions is the adoption of e-Malls, which provide various benefits to consumers and are a suitable environment for SMEs to present and sell their products. The e-Mall is a modern idea in Saudi Arabia; thus, it could be beneficial to adopt the diffusion of an innovative approach to the spread of e-Malls. This article focuses on determining the requirements and obstacles facing consumers who make purchases through e-Malls. A quantitative survey was conducted on a random sample of 381 residents of all ages in Saudi Arabia who had made online purchases. The main factors influencing the adoption of e-Malls were organisational, technical and cultural elements.