Journal of Public Procurement

Publisher:: Emerald Group Publishing Limited
Publication date:: 2021-02-01

ISBN:: 1535-0118

Issue Number

No. 25-1, February - January - January - December - December - December 2024

Latest documents

Mitigating risks in public procurement
Purpose: This study aims to examine the challenges and risks in public procurement, focusing on Greece’s context within the EU framework. It seeks to provide guidance on mitigating potential risks throughout different stages of public procurement by leveraging the knowledge of Greek professionals and existing literature. The research explores the implementation of the national public procurement plan in Greece, aiming to accelerate contract awards, reduce bureaucracy, promote competition and encourage cost-effectiveness among contracting authorities. Design/methodology/approach: The study uses a qualitative approach, combining a literature review with expert interviews. Greek professionals with extensive experience in public procurement were consulted to gather insights on current practices, challenges and risk mitigation strategies. The research also analyzes EU public procurement strategies and their implementation in Greece. This mixed-method approach allows for a comprehensive understanding of the public procurement landscape, integrating theoretical frameworks with practical insights from industry experts. Findings: The research reveals significant improvements in Greece’s public procurement sector despite persistent irregularities and challenges. Key findings include the need for increased transparency, professionalization of sector staff, support for SMEs and enhanced digitization. The study identifies specific risks at various stages of the procurement process and proposes mitigation strategies. It also highlights the importance of implementing the national public procurement plan to streamline processes, reduce bureaucratic hurdles and promote competition and cost-effectiveness. Social implications: Effective public procurement management has far-reaching social implications. By improving the quality and efficiency of public spending, it can enhance public services and infrastructure, ultimately benefiting citizens’ quality of life. Increased transparency and fair competition can foster trust between citizens and government, promoting a culture of accountability. Supporting SMEs in public procurement can stimulate economic growth and job creation. Furthermore, promoting sustainability and innovation through procurement practices can contribute to broader societal goals such as environmental protection and technological advancement. Originality/value: This study provides a unique perspective on public procurement challenges and risk management in Greece within the EU context. By combining insights from experienced Greek professionals with a comprehensive literature review, it offers practical, context-specific guidance for risk mitigation in public procurement. The research contributes to the growing body of knowledge on public procurement reform in EU member states, particularly those facing similar challenges to Greece. Its findings and recommendations can inform policy-making, improve procurement practices and enhance the overall effectiveness of public spending in Greece and potentially other EU countries.
Assessing the value of artificial intelligence (AI) in governmental public procurement
Purpose: The main purpose of this study is to enhance knowledge regarding the early stages of planning for and adopting artificial intelligence (AI) in governmental public procurement. While there are numerous studies on AI and procurement in private companies, there is limited information on AI and public procurement. Design/methodology/approach: The empirical data consists of information obtained from 18 semi-structured interviews with procurement managers and individuals involved in the development of procurement at governmental agencies. Additionally, a workshop was conducted with the respondents to discuss and validate the study’s findings. Findings: Findings indicate a generally low level of AI maturity in previous research and within the investigated governmental agencies. The perceived benefits of AI primarily revolve around improved operational capabilities, potential for certain process efficiencies and the ability to enhance monitoring through AI. Various challenges related to organizational, process, technological and data management were highlighted. Findings also indicate that perceived benefits and value created by AI can be viewed from a short-term perspective to a long-term perspective. Social implications: The study provides insights into societal values that can be achieved using AI in public procurement. Originality/value: This study provides a new perspective on AI in public procurement by focusing on governmental agencies. It explores the perceived benefits, interests and challenges associated with AI implementation in public procurement. Furthermore, this study discusses the potential outcomes of incorporating AI in public procurement and the impact it may have on the values created by the public service, both short- and long term.
Trends and hotspots in public food procurement: exploring planetary boundaries and human needs in an integrative literature review
Purpose: Using an Integrative Literature Review (ILR), this study aims to investigate the components defining the Safe and Just Operating Space (SJOS) within food systems and assess their applicability in decision-making for public food procurement (PFP). Design/methodology/approach: Data concerning SJOS implementation in food systems and the criteria used in PFP were retrieved from the Web of Science and Scopus databases, following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol. Findings: The analysis of the literature highlights that climate change (n = 31; 17%) and water use (n = 29; 16%) are the primary focus areas regarding Planetary Boundaries (PB), followed the nitrogen cycle, land use, biodiversity loss and the phosphorus cycle. In PFP, key criteria linked to PB encompass climate change (n = 19; 7.2%), water use (n = 17; 6.44%) and chemical pollution (n = 17; 6.44%). The social and ethical dimensions underscore labour (n = 18; 6.82%), water (n = 17; 6.44%), income (n = 16; 6.06%) and energy (n = 16; 6.06%). Research limitations/implications: Despite the strengths of this study, certain limitations should be acknowledged. Although the inclusion and exclusion criteria for the reviewed articles were clearly defined, it is possible that relevant literature was unintentionally excluded. Expanding the scope to include grey literature – such as government documents, reports, policy statements and statistical reports – could provide additional insights and broaden the scope of the findings. Moreover, the search was limited to the Web of Science and Scopus databases, which may have resulted in the omission of relevant studies, particularly those published in non-English languages or not indexed journals. Practical implications: The identified procurement criteria can help public administrators develop guidelines and tools for food procurement that consider the SJOS. Social implications: This paper offers an understanding of the connection between planetary processes and human well-being in the context of PFP. Originality/value: This pioneering research lays the groundwork for future agendas in this field and encourages reflection on critical factors essential for selecting methods and standards applied in practical public procurement.
Advancing collaboration toward green supplier selection: perspective of green relational capital
Purpose: Though there is literature on green collaboration to supplier selections, there are hardly any empirical studies that analyze collaborative networks toward green supplier selection (GSS) from the perspective of green relational capital (GRC). Therefore, this study aims to fill this research gap by analyzing the development of collaboration toward GSS through the lenses of GRC. Also, this study explores how collaboration between institutions and their relevant green stakeholders, framed through the lens of GRC influences the selection of green suppliers. Design/methodology/approach: This study uses an exploratory case study approach involving public universities in Ghana. This study is based on interviews conducted with 27 key respondents across seven universities. A purposive sampling technique was used in selecting respondents who were interviewed face-to-face with a semi-structured interview guide. Atlas ti software was used to generate themes for discussion. Findings: This study’s findings suggest that the reason green criteria are not integrated into supplier selection is due to an insufficient collaboration among relevant green stakeholders. Through green training workshops, conferences, continuous professional development and affiliation with professional bodies, procurement practitioners can develop a collaborative network among themselves to promote the integration of green sustainability into supplier selection. Constructs that help to establish strong collaborative network identified in this study include trust and consistency, mutual benefits, obvious intentions and effective communication. Practical implications: This study identified constructs promoting effective green collaboration toward the adoption of GSS. These constructs as identified in this study, provide a clear means of developing green collaboration among relevant stakeholders. By fostering and developing collaboration, the main construct of GRC, institutions can successfully integrate green sustainability into their supplier selection process, leading to long-term benefits for both the environment and the institution. Social implications: Collaboration toward integration of green sustainability into supplier selection necessitates engagement with various relevant green stakeholders, including suppliers, customers, government bodies, colleagues in sister institutions and environmental advocacy groups. This fosters a sense of shared responsibility and collective action toward sustainability goals. Originality/value: This study offers empirical evidence on the impact of collaboration on supplier selection and green sustainability performance, contributing to the existing body of literature. By analyzing collaboration, a perspective of GRC, toward the integration of green sustainability into supplier selection is considered as a novel study.
The effects of social procurement policy on companies in the construction industry: an international comparison of Australia and Scotland
Purpose: This paper aims to compare the effects of social procurement policies on companies in the Victorian and Scottish construction industries. Scotland and Victoria have led the way in the recent revival of social procurement. Design/methodology/approach: Semi-structured interviews were undertaken with 27 organisations and 28 participants who have experience of implementing social procurement policies into the construction industries of both jurisdictions. Findings: Findings contribute important new comparative insights from multiple stakeholder perspectives, into the effects of social procurement policies on firms operating in the construction industries of the two jurisdictions. Findings indicate an increasing awareness of social procurement in the construction industries of both Scotland and Victoria. However, differences in policy design determine the nature and extent of this awareness, the level of empowerment felt by actors and the social impact these new policies have in practice. It is concluded that to maximise the social impact of social procurement policies into major industries like construction, policymakers need to carefully consider supply-side limitations, the political context into which social procurement is being implemented and the way they prescribe what types of social value they want to create and for whom. Social implications: Successful social procurement policy implementation into the construction industry can have significant positive social implications for the communities in which the industry builds due to the large numbers of people it employs and its large multiplier effect into the wider economy. Originality/value: By investigating the effects of social procurement policies on a cross-section of organisations from across the construction industry supply chain, this international study, contributes new comparative insights to the emerging bodies of research on the impact of public procurement on companies in major industries like construction.
Building information modeling in construction projects: the case of the Portuguese code of public contracts
Purpose: This study aims to address gaps in the integration of Building Information Modelling (BIM) into procurement processes for construction works under the Portuguese Code of Public Contracts (CCP). The goal is to improve procurement procedures with practical recommendations benefiting both public and private sectors, and applicable in other countries, promoting efficient BIM use in construction projects. Design/methodology/approach: The study involved a literature review and expert interviews to identify opportunities within the CCP related to construction procurement that impact BIM implementation during construction works. It critically analyzed these insights and proposed specific adjustments to the CCP to enhance BIM application in public construction works. Findings: The study provides practical recommendations to address two main gaps identified in the literature: the neglect of non-specific digitalization factors influencing BIM implementation, and the lack of consideration for specific constraints in public procurement, particularly those dictated by legal frameworks like the CCP. These recommendations aim to optimize traditional procurement provisions for public construction, thereby improving BIM utilization on-site. Social implications: The study’s social implications include enhanced transparency and efficiency in construction processes, leading to reduced delays and costs for both stakeholders and the public. By optimizing BIM practices, public resources can be used more effectively in construction projects. The research may also accelerate the adoption of advanced technologies in the industry and improve urban development through better-planned and executed infrastructure projects. Additionally, the study’s recommendations could serve as a model for other countries, fostering the adoption of higher construction standards on a global scale. Originality/value: The study’s original contribution lies in its comprehensive examination of public procurement procedures, particularly within the CCP context, to enhance the utilization of BIM during construction works. It uniquely identifies literature gaps and provides practical recommendations addressing non-specific digitalization factors and legal constraints in public procurement.
Do firms submit fewer tender bids with high inflation? An analysis of firms’ participation in public procurement in the EU
Purpose: This paper aims to explore the effect of sustained high inflation on public procurement participation in the European Union, both in terms of the average number of bids submitted and in the proportion of bids by small- and medium-sized enterprises (SMEs) out of all submitted bids. Design/methodology/approach: Regression modelling, using contract award notices in the Tender Electronics Daily database between 2018 and 2022, at quarterly intervals. Findings: Each inflation point increase is associated with a decline in the average number of offers received per tender by 0.43%. A more marked reduction of 8.6% in the average number of offers and a decrease in 3.4 percentage points in the SME participation rate are observed for firms operating in sectors that experienced very high levels of inflation (>20% year-on-year rate of change), compared with a situation of low inflation (0–5%). Social implications: Claims about difficulties in delivering public contracts for the set price should be taken with a grain of salt, unless businesses operate in sectors experiencing very high inflation levels. Measures to foster competition could also reduce price pressures. Originality/value: To the best of the authors’ knowledge, this is the first study to quantitatively assess the association between high inflation and public procurement participation. Two methodological novelties are introduced: the operationalisation of sectoral-level inflation down to two-digit NACE codes, based mainly on producer prices; and a matching between two-digit NACE codes for inflation and the common procurement vocabulary codes to classify calls to bid for public contracts by economic activity.
Buying what matters: towards a value model allowing to implement policy preference in public procurement
Purpose: The purpose of this study is to promote value as a core concept enabling innovative and socially responsible procurement. It suggests how organisations should analyse value from their own perspective and from that of their stakeholders and users, to keep pace with the expectations of today's society. Design/methodology/approach: The study examines developments in recent legislation and case law of the EU as well as observed good practice. It builds on these bases and on economic and behavioural approaches to define value and embed it in the awarding framework of public contracts. Findings: While traditional “prescriptive” approaches face legality and efficiency challenges as buyers must take into account societal considerations, this change of perspective allows to pursue policies in a more transparent and defendable manner. The study proposes a simple value model as a framework for such analysis. Research limitations/implications: The study opens a field for further qualitative and comparative research, measuring or determining how active implementation of value approaches improve efficiency and/or lead to better fulfilment of procurement and policy objectives. Practical implications: Reasoning in terms of value can be further developed into enabling measures promoting sustainable sourcing, support of local and small businesses and bonds with communities. Social implications: An explicit introduction of value as a procurement enabler should help organisations to implement their sustainability policies and to better use public procurement as a strategic instrument, and even as a driver of social innovation. Originality/value: In spite of the pressing practical challenges related to value in public procurement, literature on this topic is scarce and has mostly tackled the problematics from a purely legal or theoretical point of view. This paper tends to address it from different and more practical perspectives, such as contribution of procurement to governance; linking public procurement and public policy; meaning of innovation from transaction (market) perspective and its implications for tendering.
Approaching transcendence: a conceptual discussion on procurement fraud, education, professionalism maturity, ethics and implications
Purpose: This study aims to explore and present discussions regarding the interconnectedness of procurement fraud, supply chain education, professional maturity and ethics, and their relevance to adopting a transcendence concept as well as proposing research directions thereof. Design/methodology/approach: This study adopts a conceptual, intending to synthesize insights and propose a new conceptual framework that incorporates the transcendence framework and the process matrix. This generic framework provides a holistic view of the procurement and supply chain landscape at multiple levels – individual, team, organizational and industry. Findings: This paper delves into the complex landscape of corruption within procurement, involving a diverse array of participants, including procurement professionals. The effectiveness of current corruption theories may be limited in this context. Despite the introduction of ethical training and anti-corruption initiatives, corruption remains widespread. The delivery of content and the design of the curriculum in supply chain education necessitate a reorientation to include not only moral education but also practical or hands-on delivery methods. In Kenya, sectors such as health and education exhibit a lack of recognition and professional maturity. When all the research constructs are examined separately, they do not provide a holistic understanding, thus underscoring the need for a comprehensive approach across the supply chain spectrum. This topic is ripe for further academic investigation with empirical evidence. Research limitations/implications: This paper provides key insights for researchers and practitioners in the field of procurement and supply chain education, particularly in Kenya. However, it acknowledges the lack of empirical studies and the limitations of current research, including procurement fraud, the context-specific nature of the findings and the dynamic nature of corruption and procurement practices concerning the constructs. This paper calls for further research to address these gaps, validate its propositions and contribute to a more comprehensive understanding of public procurement and corruption in Kenya. It also emphasizes the need for continuous research due to the evolving nature of corruption and procurement practices. Practical implications: This study has practical relevance for researchers, professionals and the procurement and supply chain ecosystem. It offers insights that can inform future research, professional advocacy and policy development regarding the shape of supply chain academia in Kenya. In addition, it contributes to the advancement of procurement and supply chain professionalism in the country. Social implications: This study underscores the necessity for breaking the cycle of procurement fraud, enhancing procurement and supply chain education in Kenya, and fostering active engagement of professional associations in promoting maturity and specialization within the field. Originality/value: This study holds distinctive value by uncovering previously unexplored dynamics among supply chain constructs within the context of a lower-middle-income economy, i.e. Kenya. Deconstructing and synergizing these concepts calls for a more robust theoretical and empirical comprehension of these constructs within Kenya's unique background.
Challenges of black construction professionals with Black Economic Empowerment as a procurement policy in South Africa
Purpose: The South African Government announced the black economic empowerment (BEE) legislation in 2003 in the public procurement systems. The legislation was deemed a catalyst for the emancipation of the previously disadvantaged citizens due to the apartheid government policies that secluded them from economic activities. This study aims to explore the challenges of black construction professionals with the BEE as a procurement policy. Design/methodology/approach: This study adopted a qualitative research approach. Thirty-five black construction professionals were contacted for interviews, of which 21 responded. Due to the COVID-19 restriction, participants were interviewed using telephone interview techniques. The information received was analysed using the thematic contents analysis method. Findings: The findings revealed the challenges confronting black construction professionals regarding the BEE policy as corrupt practices (leading to the award of contracts to unqualified people), fronting of contractors and individuals for unqualified firms, preventing the participation of experienced and foreign firms, poor policy implementation with no monitoring mechanism and loss of tender due to strict requirements. Social implications: Urgent attention is needed to review the BEE policy implementation process by the South African government to address the challenges enumerated by the policy beneficiaries to ensure the achievement of the policy objectives. Originality/value: This study has identified the challenges of the BEE policy; thus, the government can institute measures to address the hindrances thwarting the beneficiaries from realising the policy objectives.