Capability hierarchy in electronic procurement and procurement process performance: An empirical analysis

This paper examines the interrelationship between two hierarchically structured functional capabilities pertinent in the organizational procurement process, and the impact of these capabilities on procurement process performance. These functional capabilities operate at different levels in an organization's procurement process. We draw upon resource- and knowledge-based views of the firm to theorize that in this hierarchy of information technology-enabled procurement capabilities, the higher-level capability – procurement integration competence – enables firms to develop and deploy a lower-level capability – digital procurement competence. Further, we theorize that the lower-level capability impacts procurement process performance directly and completely mediates the relationship between higher-level capability and performance. Thus, although performance is impacted directly only by the lower-level capability, the higher-level capability facilitates the development and use of the lower-level capability. Our research model is tested using survey data from a large sample of 412 manufacturing firms. The results provide strong support for the proposed research model. In particular, we find that as hypothesized, the impact of procurement integration competence on performance is completely mediated by digital procurement competence. Our results suggest that when examined at the procurement process level, the impact of higher-level capabilities may be manifested completely through the lower-level capabilities. Theoretical and practical implications of the research are discussed.     

Towards a common understanding of the differences between purchasing, procurement and commissioning in the UK public sector

This paper recognises that commissioning has now become an important term in the lexicon of UK public policy but the term ‘commissioning’ is taking on a different meaning than that traditionally used within the purchasing and supply management community. The frequent inter-changeability of the terms ‘commissioning’, ‘procurement’ and ‘purchasing’ is now causing confusion and means different things to different people. Therefore the academic community needs to help practitioners understand the differences and implications. A document analysis of various UK Central Government departments’ commissioning frameworks was used to establish the key themes and compare commissioning, procurement and purchasing. This paper discusses the similarities and differences, and argues that commissioning is different from procurement, but that commissioning offers major opportunities for Procurement practitioners to make a strategic contribution.     

Shaping buyer–supplier relationships in manufacturing contexts: Design and test of a contingency model

Although the idea that buyer–supplier partnerships can yield considerable benefits to firms is largely diffused among researchers and practitioners, the approach adopted in this paper is that no “one best way” exists in buyer–supplier relationships, but rather a “best way” for each specific exchange context. Hence, this paper proposes a contingency model for shaping and managing buyer–supplier relationships in manufacturing contexts. In order to test the model, an empirical study was performed on a sample of 45 buyer–supplier relationships within the Italian white goods industry. A three-dimensional performance indicator was computed to compare supplier performance achieved within relations matching the model's suggestions with those set differently. The results strongly suggest that suppliers involved in relationships set accordingly to the contingency model are likely to enjoy superior performance.     

Corporate Governance and Performance of Indian Firms: The Effect of Board Size and Ownership

The paper reviews international literature on corporate governance and firm performance and investigates the relationship in the Indian context, taking into account the endogeneity in the relationship. Governance parameters include board size, directors’ shareholding, institutional and foreign shareholding, while the fragmentation in shareholding is captured by public shareholding. A simultaneous equation regression model for Tobin’s Q, as a measure of firm performance, is attempted using these variables, while controlling for industry effects and other non-governance variables. The data corresponds to a panel of 340 large, listed Indian firms for the period 1997–2001 spread across 24 industry groups.     

Unpacking the client(s): Constructions, positions and client–consultant dynamics

Research on management consultancy usually emphasizes the role and perspective of the consultants. Whilst important, consultants are only one element in a dynamic relationship involving both consultants and their clients. In much of the literature, the client is neglected, or is assumed to represent a distinct, immutable entity. In this paper, we argue that the client organisation is not uniform but is instead (like organisations generally) a more or less heterogeneous assemblage of actors, interests and inclinations involved in multiple and varied ways in consultancy projects. This paper draws upon three empirical cases and emphasizes three key aspects of clients in the context of consultancy projects: (a) client diversity, including, but not limited to diversity arising solely from (pre-)structured contact relations and interests; (b) processes of constructing ‘the client’ (including negotiation, conflict, and reconstruction) and the client identities which are thereby produced; and (c) the dynamics of client–consultant relations and how these influence the construction of multiple and perhaps contested client positions and identities.     

Client–consultant interaction: Capturing social practices of professional service production

Based on the investigation of seven consultancy projects within an international technical consulting firm, we identify three major practices that characterize client–consultant interaction – shaping impressions, problem-solving, and negotiating expectations – and discuss their respective characteristics, activities, and contingencies. Our discussion of these practices provides not only a more differentiated picture of client–consultant interaction but also uncovers the critical role that clients play in these practices.     

Building long-term orientation in buyer–supplier relationships: The moderating role of culture

This research investigates buyer–supplier relationships in international markets. Research and practice have shown that buyer–supplier relationships benefit when partners to the relationship exhibit a long-term orientation. The extant literature suggests that a buyer's trust of a supplier and the supplier's performance affect the buyer's long-term orientation toward the relationship. We propose that the relative effects of trust and performance on long-term orientation are moderated by culture – specifically the individualism/collectivism dimension. Hypotheses are tested on data from two individualist and two collectivist cultures, using responses from over 600 purchasing professionals in the United States, Anglophone Canada, Francophone Canada and Mexico. Taken together, empirical findings suggest that cultural differences warrant consideration in developing successful purchasing strategies.     

A机电项目物资设备采购风险管理研究

机电项目物资设备采购成本在项目总投资中占比60％左右,是机电项目效益的主要源头.机电项目物资设备采购质量不符合标准规范,采购成本较高,物资设备供应不及时等都会给采购环节带来无法预料的经济、安全风险.基于此,本文从机电项目物资设备采购角度出发,通过文献研究法对其进行归纳建立风险评价指标体系,并采用AHP-粗糙集法将定性、...     

You'll never walk alone: Why we need a supply chain practice view on digital procurement

This paper conceptualizes digital procurement readiness as a dyadic construct and introduces the supply chain practice view (SCPV) as a theoretical lens that can help guide future research on digital procurement. We build on a literature review and on dyadic, explanatory case studies to provide a nuanced understanding of how the digital readiness of supply chain partners—on both sides of the dyad—needs to co-evolve for the implementation of digital procurement practices. Specifically, we outline how the SCPV can serve as both a holistic and a supply chain-specific framework for future research on the following: 1) the antecedents that help explain why supply chain partners adopt inter-organizational digital procurement practices, and 2) the relational performance outcomes derived from their use. For managers, this study implies the need to explicitly consider interactions with and influences of supply chain partners in their quest to rapidly and effectively digitalize procurement.     

Devaluating projects and the investment–uncertainty relationship

Sarkar (2000. On the investment–uncertainty relationship in a real options model. Journal of Economic Dynamics and Control, 24, 219–225) analyzes the investment–uncertainty relationship in a real-options model demonstrating that the widely accepted conclusion that uncertainty harms investment can be reversed. Wong (2006. The effect of uncertainty on investment timing in a real options model. Journal of Economic Dynamics and Control, forthcoming) confirms this point showing that more uncertainty can reduce the expected time to exercise the investment option. This paper deals with such an issue and attempts to integrate both Sarkar's and Wong's analysis.For risk-neutral investors, we show that uncertainty can favor investment only if projects devaluate over time. This conclusion does not hold in a CAPM framework, where we demonstrate that the relationship uncertainty/investment can be positive (a) even when the investment threshold increases with uncertainty and (b) in the case of projects negatively correlated with the market portfolio.     

A behavioral study of supply manager decision-making: Factors influencing make versus buy evaluation

This paper investigates behavioral factors influencing a supply manager's decision to insource or outsource the manufacture of a product component. To do so we posit a theoretical framework that integrates the heretofore distinct operational make–buy literature and the behavioral decision-making literature. Within the framework three factors influencing the make–buy decision are brought into account: the decision-maker's perception of supply risk or “strategic vulnerability”, the degree of core competency represented by the product component under consideration and the formality of the information about supply alternatives. The results of a controlled experimental survey show that: strategic vulnerability and core competency do influence the make–buy decision, strategic vulnerability has greater influence than core competency and information formality moderates the make–buy decision when the strategic vulnerability and core competency conditions are mixed. The practical implications of these results include the notion that management can ensure a more rational make–buy decision if they understand the biases that influence the decision and point these biases out to the decision maker.     

Small entrepreneurial ventures culture, change and the impact on HRM: A critical review

Effective management of people is increasingly recognized in the literature as a vital contributor to organizational performance and indeed survival. Nevertheless, studies of the dynamics of human resource management in small entrepreneurial ventures are relatively sparse. In this paper we draw upon a range of behaviourally-informed research publications to demonstrate that a culture of owner-influenced individualism and informality pervades these ventures, affecting prime human resource issues such as performance related practices, training and development, work–life balance and other critical dimensions of employee welfare. A preference for informality and an absence of strategy to inform owner–employee relations sits uneasily alongside growing political pressures toward codification of the management of employees in small entrepreneurial ventures. The response to these pressures may have significant implications both for relationships with employees and for organizational performance.     

Building dynamic capabilities in product development: How do contextual antecedents matter?

This paper contributes to elucidate the nature, antecedents and outcomes of dynamic capabilities in product development. Building on the organizational context literature, the paper uses an input–process–output framework to argue that a context characterized by a combination of autonomy, performance management, support and trust facilitates dynamic capabilities for continuous product development. Further, dynamic capabilities shape product development competences. Empirical evidence is provided by performing survey research with data collected from 80 product development efforts developed in Spain. The paper includes conclusions, limitations and future research potentials for those with an interest in supporting dynamic capabilities.     

政府投资项目中规范评标专家方法的研究

虽然国家法律法规对政府投资项目的招标投标活动进行了严格的规定,但实际招标投标过程中仍有大量的违规行为发生。其中,评标是招标过程中的一个重要环节,评标专家如果在评标中违轨,可能直接改变招标的结果,并且违轨方式具有隐蔽性。于是对政府投资项目招标投标的日常管理和监督提出了更高的要求。本文首次引入决策熵理论,对评标委员评标结果的可靠性进行考察,以监督评标委员的评标行为。     

On bank privatization: The case of Egypt

This paper discusses the controversy regarding the privatization of the banking sector in Egypt. It provides an overview of the structure and evolution of the banking system, in the context of the series of reform measures undertaken by the Egyptian authorities over the past decades. The paper assesses the performance of the state-owned banks versus private banks over the period 1995–2005. Microprudential indicators, such as capital adequacy, asset quality, earnings, and profitability, reveal that state-owned banks lag behind in terms of efficiency and performance, compared to their private counterparts. Results also suggest that retaining government ownership can adversely affect banks performance. The paper explores the factors hindering the smooth implementation of bank privatization. The authors indicate that the financial sector reform currently adopted is comprehensive; however it is confronted with various political, social, and economic risks, which raise concerns regarding its sustainability. The paper then draws on the existing literature to provide guidance to policy makers, regarding effective and successful implementation of bank privatization.     

Knowledge transfer across permeable boundaries: An empirical study of clients’ decisions to involve management consultants

We investigate the relationship between the knowledge requirements of projects and clients’ decisions whether to procure services from external management consultants for the execution of these projects. Using data from interviews with client decision-makers regarding the execution of 86 projects, we find that knowledge requirements are strongly associated with the decision whether or not to involve external consultants. The results highlight the closeness of the relationships between clients and consultants, supporting Kitay and Wright's [Kitay, J., & Wright, C. (2004). Take the money and run? Organisational boundaries and consultants’ roles, The Service Industries Journal, 24(3) 1–18] view of the permeability of the boundaries between many client organizations and their consultants. The findings also confirm our expectation that clients use the services of external management consultants in order to procure functional or industry-specific knowledge which consultants can pool and apply efficiently across many projects.     

比选采购在工程项目采购中的应用研究

比选采购只能适用于依法必须招标项目之外的采购项目，在实际采购过程中应用比较广泛，文中通过对比选采购在工程项目采购过程中应用现状分析，指出了存在的不足，针对不足提出了相应的应对措施。     

Stable seasonal pattern models for forecast revision: A comparative study

Many firms prepare forecasts at the beginning of each financial quarter that predict total sales over the upcoming quarter. Such forecasts may be used to make financial projections, or to plan manufacturing capacity and materials purchases. As weekly sales are recorded during the quarter, these quarterly forecasts are often revised, allowing plans and projections to be adjusted appropriately. A formal basis for these forecast revisions may be found in so-called stable seasonal pattern models, which are based on the observation that in many instances, the sales that accrue during a given period of a quarter follow a regular pattern. This paper discusses a number of stable seasonal pattern models – several from the literature, two that are novel – which have been evaluated for making forecast revisions at Sun Microsystems, Inc. Commonalities between the models are elucidated using a general theoretical framework, and a straightforward sample-based mechanism is described that affords great flexibility in the design and use of stable seasonal pattern models. The paper culminates in a detailed comparison of the performance of new and existing stable seasonal pattern models with respect to Sun's sales data.     

The impact of employee satisfaction on quality and profitability in high-contact service industries

The extant operations management literature has extensively investigated the associations among quality, customer satisfaction, and firm profitability. However, the influence of employee attributes on these performance dimensions has rarely been examined. In this study we investigate the impact of employee satisfaction on operational performance in high-contact service industries. Based on an empirical study of 206 service shops in Hong Kong, we examined the hypothesized relationships among employee satisfaction, service quality, customer satisfaction, and firm profitability. Using structural equations modeling, we found that employee satisfaction is significantly related to service quality and to customer satisfaction, while the latter in turn influences firm profitability. We also found that firm profitability has a moderate non-recursive effect on employee satisfaction, leading to a “satisfaction–quality–profit cycle”. Our empirical investigation suggests that employee satisfaction is an important consideration for operations managers to boost service quality and customer satisfaction. We provide empirical evidence that employee satisfaction plays a significant role in enhancing the operational performance of organizations in the high-contact service sector.