International Journal of Procurement Management (47 papers in press)
An Exploratory Study on Procurement Risk Management in Japanese Manufacturing Companies
by Akira Endo, Katsuyuki Kamei
Abstract: The procurement sections in Japanese manufacturing companies are usually responsible for dealing with various kind of risks on the process of a purchasing resources and components. The purpose of this paper is to clarify an actual status and incentives of procurement risk management in Japanese manufacturing companies. This study investigates 362 firms listed on the first section of the Tokyo stock exchange to examine how they actually manage procurement risks and are motivated to conduct risk responses. As a result, this paper reveals an outline of procurement risk management in these firms and identifies current issues and three main incentives. Finally, this study indicates that a future research is needed to develop a procurement risk communication model with stakeholder collaboration, including companies in supply chains, customers, investors, governments, NGOs, and NPOs.
Keywords: procurement; purchasing; risk management; procurement risks; Japanese manufacturing companies; supply chain.
An optimising inventory model for investing preservation technologies in deteriorating products with hybrid type of price and stock dependent demand rate
by S.K. INDRAJITSINGHA, Anita Kumari Sahu
Abstract: The objective of this study is to examine the effect of preservation technology investment of an inventory system for instantaneous decaying items. In real life situation retailers invested capital in preservation technology leads to lower the rate of deterioration of the products. In this research, we developed an optimizing inventory system of preservation technology in decaying items by considering hybrid type of demand. The market demand of daily essential products fluctuates because of two demands: non-linear and linear. In view of the above two demands, we observe that the demand is price sensitive as well as stock dependent. Moreover, the aim of this proposed study is to obtain the optimum ordering cycle, optimum selling price, optimum preservation technology cost and maximum total profit. Three different numerical examples are provided as case study with sensitive analysis carried out to validation of the proposed model.
Keywords: Inventory; preservation technology; hybrid-price-stock-dependent-demand; supply-chain; deterioration.
Analysing the Impact of Gamification Dynamics and e-WOM on Impulsive Buying
by Azarnoush Ansari, Seyed Fathollah Amiri Aghdaie, Javad Telgerdi
Abstract: Considering the development of cyberspace and the high influence of the Internet in life and business, the investigation of emerging technologies and concepts appears essential. The purpose of applying new marketing methods is to use its capacity to influence behaviour. Modern methods are marketers' technological tools. The present research attempts to study the impact of gamification dynamics and the electronic word of mouth, on urge to impulsive buying. This research was conducted in Iran with a sample size of 1820 people. In order to measure the research variables, the simulator of the online store was equipped with gamification designed for the Android operating system. The results of the research show that gamification dynamics, electronic word of mouth, and enjoyment exert a positive and significant effect on urge to impulsive buying. Among gamification dynamics, reward, status, self-expression, and altruistic behaviours have an effect on creating enjoyment, but competition and achievement have no positive and significant effect.
Keywords: Gamification Dynamics; Electronic Word of Mouth;Online Impulse Buying; impulsive buying; self-expression.
Comparative analysis of public procurement and public financial management within Asia and Africa
by Mark Opoku Amankwa, Emmanuel Kweinor Tetteh
Abstract: As procurement processes in many developing countries are without transparency, addressing agency problems becomes necessary. This study reflects on public procurement and public financial management in a comparative analysis within Asia and Africa through the agency theory lens. With a descriptive case study design, the study utilises datasets from 100 Asian and African countries from 2002 to 2018. The distinctiveness of this paper is that it uses Public Expenditure Framework and Accountability procurement indicators to ascertain whether agency cost has increased in both continents. The results showed that Asia performed better than Africa in all the indicators except for voice and accountability and procurement complaint management. There is also clear evidence to suggest that procurement decisions reduce agency cost in Asia than in Africa. The study, therefore, concludes that Asian countries tend to converge more to international standards during procurement processes than African countries, which leads to efficient PFM outcomes.
Keywords: Public Procurement; Public Financial Management; Agency Theory; Asia; Africa.
Implementation of e-procurement for pharmaceuticals: Perspectives of the staff of the State Pharmaceuticals Corporation (SPC) of Sri Lanka
by Prasanna Dinesh Koggalage, K.M.D.R. Dassanayake, P. K. S. S. Kulasuriya
Abstract: Public procurement is pivotal to governments, not only to deliver public goods or services but also, ensuring value for money. Electronic Procurement, through Information and Communication Technology improves the efficiency and transparency of public procurement. The State Pharmaceuticals Corporation of Sri Lanka (SPC) procures pharmaceuticals for state health sector in Sri Lanka, but its traditional procurement system has inefficiencies, leading to delays affecting patient care services. Hence, introduction of an e-procurement system is important. This cross-sectional study obtained perspectives of the staff of SPC towards implementation of an e-procurement system through a self-administered questionnaire administered to all relevant staff members (60 respondents). It revealed that the majority was dissatisfied with the existing system which is less efficient, costly and less user-friendly. The majority expected that e-procurement will improve efficiency and user-friendliness. Hence, this recommends establishment of an e-procurement system by reforming existing government policies to support efficient procurement of pharmaceuticals.
Keywords: public procurement; e-procurement; electronic procurement; perspectives of staff towards e-procurement; State Pharmaceuticals Corporation of Sri Lanka; procurement of pharmaceuticals.
A Stackelberg game for ordering and pricing policies in a decentralized dual-channel supply chain
by Mohammadali Pirayesh, Farzad Dehghanian, Fariba Soleimani
Abstract: This study explores ordering and pricing policies in a decentralized two-echelon dual-channel supply chain including one manufacturer and one retailer. The manufacturer produces in a lot to supply an integer number of the retailers order and also to meet the demand of direct sales channel. It is assumed that the manufacturer has more market power than the retailer and he is the leader of a Stackelberg game. The concavity of the manufacturer profit function is proved which based on it a solution procedure is proposed by using game theory and Nelder-Mead algorithm to find the optimal pricing and ordering policies for the manufacturer and the retailer. The numerical example is provided to investigate the features of the proposed model. It is shown that, the inventory holding costs, setup costs and ordering costs have negligible effects on optimal prices and also by increasing the price elasticity of the demand of one channel to the price of the other channel, both members can achieve more profit.
Keywords: Inventory control; Dual-channel supply chain; Pricing; Game theory; Stackelberg game.
Evaluation of Information Support of National Contract Systems for the Period of 2015
by Natalia Mamedova
Abstract: Result of study has an integrated nature and may be used for determination of national contract systems directions development and their compliance with international rules of public procurement. A proved hypothesis that evaluation results of information system (official website, portal) may be adopted as evaluation results of national contract system information support is a basis of the study. National contract system is intended for a public procurement regulation. For hypothesis development benchmarking of official websites of certain countries is carried out, it became a base of national contract systems rating elaboration on criteria of information openness and transparency in the field of public procurement. Processed rating data use has been taken as a basis of Open Procurement Index (OPI) calculation for number of countries and OPI rating elaboration. Processed rating data results on certain countries are used in benchmarking of these countries rating results on CPI, IDI and EGDI.
Keywords: contract system; information support; public procurement; official website; Open Procurement Index.
Constraints to incorporate competition in Public-Private Partnerships (PPP) in Malaysia
by Muhammad Imran Zin Zawawi, Akila Pramodh Rathnasinghe, Udayangani Kulatunga
Abstract: Competition in procurement not only benefits government and taxpayers but also provides an equal market for the private sector. Competitive procurement stimulates market creativity, as it discourages anti-competitive behaviour. Despite the complexity of the PPP procurement process, the world is now promoting competition within it, an element yet to be fully implemented in Malaysia. This paper analyses the constraints that Malaysia faces in effectively maintaining PPP competition. Within the case study research strategy, semi-structured interviews and content analysis were used as data collection and analysing methods. The study found that in its efforts to make the PPP programme a success, the Malaysian PPP has followed flexible implementation, with less emphasis on competition. The effect of focusing only on PPP's macro aim has resulted in a lack of competition. The current challenge is to strike a balance between achieving aims and maintaining governance and therefore getting the best out of PPP,
Keywords: Competitive Procurement; Public-Private Partnership (PPP); Corruption; Good governance; Malaysia.
Evaluating the effect of psychological dimensions of gamification strategy on creation of unplanned purchases.
by Seyed Fathollah Amiri Aghdaie, Hamidreza Talaie, Paria Soltanpoor
Abstract: To use and how to use varied gamification tools is very important from salesperson perspective. If they use them in a technical way, it may lead to unplanned buying. In this paper data was gathered from 360 customers in Dillards chain stores in Houston by handing out questionnaire. This study first introduces the concept of gamification strategy and unplanned purchases, and then identifies some salespersons gamification tools based on psychological dimensions which can lead to change in purchase intention or unplanned purchases and consequently trade growth. In this way scholars developed a structural model which is going to illustrate the effect of these psychological dimensions on unintended buying. Results showed that these strategies are so effective in marketing.
Keywords: gamification strategy; psychological dimension; unplanned purchases.
A hybrid algorithm for managing green performance in supply chain using SWOT approach, by combining MCDM techniques in gray conditions
by Ali Nazeri, Samin Ghanavati, Seyed Mohammad Mehdi Kazemi, Zahra Tabatabaei
Abstract: The main objective of this research is to identify the weaknesses, strengths, opportunities and threats in managing the green performance of energy supply chain by using the SWOT approach. In this research, by applying SWOT approach, the strengths, weaknesses, threats and opportunities were identified and then the most relevant ones were extracted by using the statistical methods. Then, by using grey the DEMATEL method, the effects of identified factors were extracted and finally, by using the ANP method, the codified strategies were pre-selected by using the SWOT approach. Based on the results, the strategy of using management capacity to raise the level of familiarity of the employees in the field of green management and facilitating the process of reducing energy consuming devices according to the relevant rules has a higher priority than other strategies in the green management of the energy supply chain.
Keywords: green performance management; energy supply chain; SWOT; grey theory; DEMATEL; ANP.
Cultures Consequences for Purchasing Comparing Purchasing Job Ad Requirements from Different European Countries with Cultural Models
by Klaas Stek, Bernd Markus Zunk, Volker Koch, Holger Schiele
Abstract: This research analyses the cultural differences in purchasing and supply management (PSM) job requirements from three European countries. The PSM job requirements in job advertisements have been compared with two cultural models: GLOBE and Hofstede. The universalism claim is tested based on comparing requirements in job advertisements for purchasers from Austria, Belgium, and the Netherlands. According to Hofstede, these three belong in different cultural clusters but just to one cultural area according to the GLOBE model. Results reveal that about 20% of the observed requirements were shared and about 80% were dissimilar. That cultural differences exist in job requirements has important implications for research and education practice, which may need to overcome this neglect to take cultural differences into account to come up with accurate and practically fitting results since the universal purchaser seem not to exist; country-specific cultural circumstances influence PSM job requirements.
Keywords: purchasing skills; job advertisements; cultural differences; procurement; purchasing and supply management; PSM; purchasing HR.
Approaches to Governance of Risks Beyond First-tier Suppliers
by Deodat Mwesiumo, Bella Belerivana Nujen, Jens Gunnar Aspelund, Vetle Helland
Abstract: This paper explores approaches to governance of supply risks beyond first-tier suppliers and factors that contribute to a firm choosing a particular approach. A multiple-case design was deployed to compare and evaluate firms with diverse characteristics. Data collected from six firms were coded, categorised, and aggregated into a delineation framework. The framework identifies four dynamic approaches that procurement managers can apply in governance of supply risks beyond first-tier suppliers, namely control, cooperate, trust and neglect. The choice of each approach is due to particular antecedent factors such as focal firms ability to influence a first-tier supplier, its capability to manage risks in lower tiers, the ability of the first-tier supplier to manage risks in lower tiers, and trust between the focal firm and their first-tier supplier. The paper argues that procurement managers should primarily aim for the cooperation approach.
Keywords: risk governance; first-tier suppliers; lower-tier suppliers; risks beyond first-tier suppliers; sub-suppliers; procurement management.
Green Public Procurement: Evidence from Greece
by Varvara Orfanidou, Nikolaos Rachaniotis, Giannis T. Tsoulfas
Abstract: Economic, social and political developments in the EU, as well as budgetary constraints, have rendered reformation of Union law on public procurement necessary. Green public procurement (GPP) is an important tool for achieving environmental policy objectives related to climate change, resource use and sustainable consumption and production. The literature regarding sustainable supply chains in the public sector is scarce and to the best of the authors knowledge, there is none available on the implementation of GPP in Greece. The aim of this paper is the analysis of the Greek public sectors status in the field of GPP and the exhaustive recording of the implemented related cases. A cost-benefit analysis is performed in order to evaluate these good practices.
Keywords: green public procurement; GPP; cost-benefit analysis; CBA; Greece.
Factors influencing consumer satisfaction Toward Online Shopping, a Special Reference to India Context
by Fatehi Almugari, Amgad S.D. Khaled, Majed Kassem Alsyani, Eissa A. Al-Homaidi, .Moatasem M. Qaid
Abstract: The study aims at examining dimensions that may affect online shopping satisfaction of Indian customers. The proposed model describes website design, product information, security and privacy, perceived usefulness and perceived interactivity that may influence customer satisfaction in online environment. Online and offline surveys are coordinated and self-regulated for online shoppers in Aligarh, UP, India. The study included a total of 497 online shoppers. Confirmatory factor analysis was applied to check questionnaire validity and reliability. A structural path model applied to examine the study hypotheses. The empirical results indicated that product information, website design, security and privacy, perceived usefulness have significant and positive influence on the customer satisfaction toward online shopping in India. Also, the results revealed insignificant relationship between perceived interactivity and customer satisfaction toward online shopping. The findings of this study are limited to the customers in Aligarh City, UP, India. Future research can extend the geographical area of respondents. The results of this study will enhance and extend the online retailers understanding of the roles of website design, product information, security and privacy, perceived interactivity, and perceived usefulness in enhancing online shopping and customer satisfaction in emerging markets like India.
Keywords: product information; website design; security and privacy; perceive usefulness; perceived interactivity; customer satisfaction; online shopping.
Routinisation in a Cooperative Network between the Military and the Private Sector
by Markus Järvinen
Abstract: Routines have been regarded as a critical factor in organisations success. However, the forming of routines, or routinisation, has received less attention. In particular, the routinisation in cooperative networks between the military and the private sector has not been covered. Hence, the aim of this study is to describe what the actors in a cooperative network are trying to routinise and how they are trying to accomplish that. The study found that actors try to routinise processes and structures within an emerging network. They do this via functions (e.g., communication) and constraints (e.g., contracts, regulations). The routinisation is also supported or hindered by matters related to time, framework, actors, and actions within the network. The study finally proposes that actors in a cooperative network between the military and the private sector should focus on four aspects for routinisation to be successful: communication, interpretation, understanding the framework, and stability.
Keywords: routines; routinisation; cooperation; military; private sector; public procurement; networks.
Reverse auction principles in supply chain
by Clever Divino Inácio De Almeida, Ricardo Luis Machado
Abstract: In the past few years, reverse auction (RA) has remained the interest in academic and industrial societies. A systematic literature review (SLR) is conducted in the last six years to raise the most relevant RA terms used in the supply chain. To carry out the SLR, a five-stage method is followed: material collection, descriptive analysis, category selection, and material evaluation. In the research, the nine most relevant keywords about RA related to the supply chain are considered. The review is limited to published papers in Scopus and Web of Science. Therefore, other types of studies can be included in future studies. To validate the findings, the authors recommend future research to implement a mechanism with the raised principles. The research provides an understanding of RA models considering their main characteristics, advantages, and issues that must be evaluated before adopting them in the supply chain.
Keywords: reverse auction; online reverse auction; procurement management; electronic purchasing; e-procurement; e-auction; supply chain management; systematic literature review.
Financial Performance Measurement Framework of Automotive Supply Chains
by Masoud Rahiminezhad Galankashi, Farimah Mokhatab Rafiei
Abstract: This study develops a framework to assess financial performance of automotive supply chains. Financial supplier relationship management (FSRM), financial internal supply chain management (FISCM) and financial customer relationship management (FCRM) perspectives and their measures and metrics are considered to develop the framework. Following, an expert-based questionnaire is designed to prove its applicability and importance. According to results, most important and applicable metrics of FSRM is cost of raw materials/components. Regarding the FISCM, production cost is the most important and applicable metric of manufacturers. Additionally, the most important and applicable metrics of distributors are distribution/freight cost and pickup/warehouse place cost, respectively. Regarding FCRM, the most important metric of customers measure is number of new customers while the most applicable metrics are product after sale service and customer loss rate. Following, the most important and applicable metric of collector is transportation cost. For recyclers, the most important and applicable metrics are holding and warehouse costs, and transportation costs, respectively.
Keywords: supply chain management; SCM; financial performance measures; reverse logistics; automotive industry.
Strategic assessment of influential determinants of social media engagement among SMEs
by Jugal Kishor
Abstract: This paper was intended to corroborate influential determinants that are instrumental in stimulating entrepreneur practitioners to adopt social media platforms to practice marketing activities. The ability to diffuse information instantly enables social media a centre of attraction to interact with a potential prospect. Citing the aim of the research, this study proposed a hypothesised model that was validated using structural equation modelling employing the information collected from 176 SMEs. The data evidence verified the model and offer theoretical as well as practical inferences for entrepreneur practitioners. This study recommends, by way of owing flexible advantages associated with the social media platforms; SMEs may integrate this online course of action to spread brand awareness, build brand reputation, share relevant content, grow business, and get a detailed demonstration of customers and brand performance.
Keywords: advertising; brand building,; content creation; growth; social media; entrepreneurship; SMEs; marketing; online marketing.
Current State of Practice in the Procurement of Information Technology Solutions: Content Analysis of Software Requests for Proposals
by Phuong Nguyen, Brian Lines, Omar Maali, Kenneth Sullivan, Kristen Hurtado, John Savicky
Abstract: The request for proposal (RFP) process is essential to the subsequent success of software project implementations. The RFP seeks to identify an appropriate software solution to best meet the client organisations scope and contractually establishes the projects baseline cost and schedule expectations. However, there is a lack of RFP-research related to the current state of practice in software projects. The objective of this study was to address this gap via a content analysis of 250 recent software RFPs across commonly implemented software categories. Results identified the most frequently used evaluation criteria and corresponding weights, procurement schedule durations, anticipated length of contract terms, quantity of itemised requirements documented in the owners scope, and other pertinent information. Inferential testing found several differences among the different software categories. The findings may be helpful to owner project managers who are tasked with leading their project teams through the early stages of scope development and vendor selection.
Keywords: software procurement; enterprise resource planning; ERP; request for proposals; asset management.
DEVELOPMENT OF PROCUREMENT STRATEGY AND SUPPLIER SELECTION FOR CONSTRUCTION PROJECTS IN CENTRAL JAVA-INDONESIA
by Hery Suliantoro, Kirana Rukmayuninda Ririh, Samuel Pandiangan
Abstract: Material procurement, as well as user satisfaction, is the key factor of a successful construction project. Therefore, the contractors need strategies that support the effectiveness and efficiency of the procurement process in line with gaining the user satisfaction. This study aims to define material procurement strategies by implementing supply positioning model (SPM) and quality function deployment (QFD). There are 24 types of material to be measured using SPM matrix. The respondents are 86 construction companies which also the members of GAPENSI Central Java-Indonesia. The best procurement strategy for critical items is to have a strong partnership relationship and consider replacing suppliers when it is urgently needed. The most important supplier criteria to achieve best construction quality are the suppliers work experience, the quality of the materials provided by the supplier, the completeness of the quality management system, the capabilities and technology used by the supplier, and other criteria.
Keywords: construction projects; materials procurement; quality function deployment; QFD; strategic procurement; supply positioning models; SPMs; Indonesia.
E-procurement in the International Experience: An Approach to Reduce Corruption in Administrative Contracts in Egypt
by Karem Aboelazm
Abstract: This paper attempts to present a model or a theory on how to determine the e-public procurement methods that should be used in each country upon application depending on the ecological factors of each country. As there are many factors through which public procurement systems can be reformed in general, but relying on the e-public procurement system through the application of a unique system may lead to the achievement of more than one dimension of the reform process, which is what this paper tries to address and address in a form. Detailed and in a manner that allows any country to apply it in its public procurement system. Also, this paper attempts to highlight the levers in the e-public procurement system in South Korea as well as the State of Italy, highlighting the most important administrative aspects in managing the public procurement process through an electronic system.
Keywords: public procurement; e-procurement; e-public procurement; e-tender; e-contract; e-payment; corruption; effectiveness; efficiency.
A PRODUCTION-INVENTORY MODEL FOR PERISHABLE ITEMS WITH DEMAND DEPENDENT PRODUCTION RATE, SHORTAGES AND VARIABLE HOLDING COST
by Ruma Roy Chowdhury, Santanu K. Ghosh
Abstract: This model investigates the optimal time at which a production cycle should be stopped and then resumed, in a production-inventory system, in order to keep shortages under control. This study considers a perishable item that decays at a constant rate. Year 2020 has seen a sudden surge in the demand of masks, PPEs, etc. to combat COVID-19. Such demand, which follows an exponential distribution, has been considered. The production rate is taken to be a linear function of demand, so as to cope up with an exponential market demand. The holding cost is taken to be a linear function of time. Shortages are allowed to occur and are completely backlogged. This model handles variable production, variable demand and variable holding cost simultaneously. The model is illustrated by a numerical example. Sensitivity analysis is carried out and has been detailed with the help of graphs. A case study has also been done.
Keywords: demand dependent production rate; exponential demand; time dependent holding cost; backlogged shortages; constant deterioration.
An Integrated ISM-PLS Model for Green Human Resources Management Practices
by Moslem Bagheri, Davood Andalib Ardakani, Mehrdad Kiani, Asieh Soltanmohammadi
Abstract: This study proposed a model for green human resources management (GHRM) practices. In doing so, primarily the literature was systematically reviewed through the meta-synthesis method, and then GHRM practices and activities were extracted and categorised. Next the practices were divided into level partitions through ISM, and the relationships between them were identified. At the final stage, structural equation modelling was used to assess the quality of the proposed method through the PLS-PM approach in R software. Next the relationships between the model dimensions were examined. The findings revealed 48 indicators falling under eight dimensions. The level partitions of the model, too, revealed that in the lowest level,
Keywords: green human resources management; GHRM; sustainability; meta-synthesis; interpretive structural modelling; ISM; structural equation modelling; SEM.
Trade Credit Production Policy with Weibull Deterioration Rate and Selling Price Dependent Demand
by Sunita , Ramesh Inaniyan, Ganesh Kumar
Abstract: This study establishes an economical production quantity (EPQ) model for depreciating commodities involving two-parameter Weibull deterioration, price-dependent demand, and trade-credit plans. Carrying cost is assumed to be a time-dependent linear function. We have analysed the model in three cases: build-up stage, time after decay starts, and time with a partly backlogging rate. For the duration of stock construct-up, there is no demand, and demand is a function of the selling price after that. We have maximised the total average earnings and achieved an optimal order scheme. Two numerical illustrations show the importance of the model. Sensitivity investigation by adjusting various parameters using MATLAB software demonstrates the acceptance of the model.
Keywords: Weibull deterioration rate; price-dependent demand; trade-credit policy; partial backlogging.
Public procurement related complaint handling mechanism in Vietnam
by The Vinh Nguyen, Phuong M. H. Pham
Abstract: The purpose of the study is to assess the current situation of the public procurement related complaint handling mechanism in Vietnam. In consultation with experts and overview study of available documents, reports, and researches, we has captured lessons-learnt and selected questionnaire for verification via quantitative surveys conducted among bidders and Procuring Entities/Employers to evaluate the current practices in public procurement participation. The research contents consist of evaluating the current procurement dispute practice and dispute resolution; identifying the improvement demands and needs for dispute resolution; determining the requirements of independent organisation(s) and/or agencies for procurement dispute resolution; and collecting initiatives and solutions for improvement of the legal regulations for procurement. The findings are considered as a basis for proposals on revised policy and regulations with an aim to create a fairer, more transparent and competitive environment for business community through an enhanced public procurement related complaint handling mechanism in Vietnam.
Keywords: public procurement; complaint; dispute resolution; Vietnam.
Two Inventory Models for Growing Items under different Payment Policies with Deterioration
by Ashish Sharma, Amit Kumar Saraswat
Abstract: Growing items industries shows an upward trend in the production as well as in consumption. Poultry and livestock are the good examples of growing items which are both deteriorating and ameliorating in nature. In this study apart from these specific features of growing items, one of the real-world business policies, permission of delay in payment is also considered. Present paper proposed two inventory models, one with the permission of delay in payment and another without it. Concavity of the profit functions with respect to decision variables are discussed analytically for both the models. Solution procedure and numerical examples are provided in order to get the managerial insights. In numerical analysis growth in weight is approximated by Richards growth function. Numerical analysis predicts that net profit and the initial purchase quantity both increases under the permissible delay payment policy as compare to without it. Sensitivity analysis provides important managerial insights.
Keywords: growing items; inventory management; deteriorating items; mortality; delay in payment.
Supplier selection and order allocation in purchasing and supply management: a systematic literature review
by Tobias Rösner
Abstract: Supplier selection and order allocation are challenging decision-making problems. In the past, these problems have already been subject of great interest. Both decision-making methods and the requirement profile in strategically complex purchasing and supply management have developed over time. In previous years, review papers and research articles have been published on the supplier selection and order allocation problem. This paper extends the research framework by presenting a systematic literature review of 171 documents from 2018 to 2020. In the analytical framework, papers are explored according to their process stage orientation and technique orientation. Also, recent findings on the application of relevant decision criteria are presented. Furthermore, a mapping concerning model characteristics is realised. An analysis of the number of suppliers, number of criteria, number of items, number of periods, number of objectives and number of decision-makers is provided. This work also recommends future research directions and eases knowledge acquisition.
Keywords: supplier selection; order allocation; decision-making; systematic literature review; purchasing; procurement.
Can Outsourcing be the Answer for Developing Economies? The Case of Jordan
by Saleh Fahed Alkhatib, Mohammad Ali Al-Omari
Abstract: This study explores outsourcing activities, strategies and attitudes of firms in developing economies. The primary objective is testing whether or not outsourcing answers firms questions in developing economies by analysing the impact of outsourcing types and levels on firms abilities to survive and grow. A review of the outsourcing literature illustrates that firms in developing economies can apply outsourcing strategies to strengthen their limited resources and improve performance. Primary and secondary collected data from the Amman Stock Exchange (ASE) listed firms during the period from 20082018 have been analysed. Several findings regarding the types, attitudes, motives and expected benefits of outsourcing have been identified across the sectors. Despite the strong positive attitudes toward outsourcing within the Jordanian context, outsourcing did not have a clear beneficial effect on the firms value and/or growth across the sectors.
Keywords: outsourcing; developing economies; small and medium enterprises; SMEs; cross sectional comparison; Jordan.
Optimal procurement decisions for food products in a retailing system with variety dependent demand
by Asghar Hemmati, Behrouz Afshar-Nadjafi, Esmaeil Mehdizadeh
Abstract: In food industry, acquiring a lion share of the market is a key factor in companys success. Offering similar substitutes instead of the requested stocked-out products has been an alternative to keep customers. In this paper, an economic ordering model with substitutable food products is investigated. Each product has its own initial constant demand which will be increased when inventory of the other products would be depleted. Similarity measures and quality of the principal request and its substitutes depends on any typical customer with its own information. Time intervals are considered as decision variables and the conditions which in closed form expression of the optimal solution are achievable are derived. Furthermore, the impact of the models parameters on the optimal solution was investigated. It was clarified that a marginal increase in the unit profit of each food product has a positive impact on the total profit and the order quantity.
Keywords: food products; procurement policy; substitutable products; food control.
How to Improve Performance in Public Investment Projects
by Leandro Ferreira Pereira, Álvaro Dias, Renato Lopes Da Costa, Rui Gonçalves
Abstract: The objective of this research work is to understand and identify the main cause failures and errors of public investment projects, which lead to significant deviations from the values estimated in economic studies and to propose solutions to prevent it in the future. This research conducted in Portugal has as a sample of dozens of investment projects that were executed in the last 20 years. The main findings indicate that the factors that explain the low performance of the project are the adoption of non-validated assumptions, the lack of risk analysis, and the insufficient qualifications of the project evaluators. Considering the contributions the main suggestion are the existence of a preventive entity to evaluate, analyses and assess in an independent way social and economic return on investment for the society and for the shareholders.
Keywords: investment project; project analysis and evaluation; case study; ROI methodology; Gateway Review Process; GRP.
The independent parallel bid evaluation strategy. Lessons from Uganda National Roads Authority
by Moses Muhwezi, Henry Mutebi, Levi Kabagambe, Musa Mbago
Abstract: We adopted a qualitative and cross-sectional design to examine lessons from the independent parallel bid evaluation (IPBE) strategy from Uganda National Roads Authority. The IPBE strategy leads to improved bidder confidence, improves objective assessment, timely high-quality decisions, in addition to organisational learning and procurement cost reduction. The study found the strategy relevant for reintroduction and rolling out to other entities, after making provisions for its operationalisation in the legislative and regulatory framework. Since the study only considered lessons from the strategy, future research should aim at understanding the relationships between the lessons learnt using various methods. Academia has an opportunity to study further this strategy that may make a breakthrough of the inherent unethical bid evaluation challenge in sub-Saharan Africa. Procurement professionals should make use of the strategy to learn and improve the bid evaluation outcomes that have a large impact of onward procurement processes.
Keywords: independent; parallel; bid evaluation; Uganda.
PPPs as instruments of public procurement in Botswana post-2007
by Emmanuel Botlhlale Botlhale
Abstract: In 2007, the world economy experienced a global financial crisis (GFC), therefore, leading to chronic fiscal strictures. Resultantly, public-private partnerships (PPPs) have become a dominant form of public procurement. The PPPs case is more deserved in mono-cultural economies which disproportionately suffered the effects of the GFC. The case for PPPs is more merited in the face of revenue challenges due to COVID-19. Since 2009, Botswana uses PPPs to finance public projects. This essay, based on the case study method, discusses the PPPs project in Botswana. It concluded that while the prevailing narrative is that PPPs are vital and the PPPs regime is taking root, there are challenges. Key ones are a dis-enabling legal-institutional framework and poor project implementation. Moving forward, and given a reduced fiscal envelope post-2007, the projected plateauing of diamonds revenues in 2030 and revenue strictures due to COVID-19 as diamonds face falling demand, PPPs are the default position.
Keywords: fiscal stress; COVID-19; public procurement; PPPs; Botswana.
Challenges to Integration of Green into Supplier Selections: Review of the state-of-the-art literature.
by Tonny Ograh, Joshua Ayarkwa, Dickson Osei-Asibey
Abstract: Green supplier selection (GSS) has become crucial as organisations increasingly compete on environmental supply chain capabilities. However, challenges impeding integration of green into supplier selection has received little attention in literature. This paper examines the existing literature on green supplier selection with the view to identifying challenges to integration of environmental sustainability into supplier selection for procurement of goods. In total, 50 articles were reviewed, all published in peer-reviewed journals between 2009 and 2019. In all, 29 challenges to integration of environmental sustainability into supplier selection were identified in the review, and these were subsequently put into four main themes: lack of knowledge and support; inadequate technology and infrastructure; organisational and operational strategy and policy, and financial limitations. Based on the review of the literature, a framework was developed to establish the relationships among the themes and to show how the barriers were put into the four main themes. The findings from this review should provide a basis for measures to be put in place for successful integration of environmental sustainability into supplier selection in procurement decisions.
Keywords: challenges; integration; environmental; sustainability; supplier; selection.
Optimal Procurement Choices for Development of Public Infrastructure
by Harpreet Pruthi, Vikramjit Singh
Abstract: The paper examines the public procurement contracts for the supply/construction of assets or provision of public services, with particular emphasis on public-private partnerships (PPP). The paper compares the PPP and traditional procurement (TP) on the basis of cost effectiveness and quality of services and innovation. Total cost of providing service not only comprises of cost of construction/acquisition of asset but also includes cost of operation and maintenance of assets which depends on quality and fitness for purpose of assets produced by private sector. Therefore, design of procurement contracts determines if incentives of private sector to minimise cost of production align with overall objective of delivering better services at lower costs to public. Paper attempts to identify the metrics, which can be utilised by Government to choose appropriate procurement methods and would also help Public procurement agencies/professionals to design contracts which can create maximum value for money (VfM) for public.
Keywords: public private partnerships; PPP; public procurement; contract design metrics; public infrastructure development; unbundling contracts; incomplete contracts; optimal risk allocation; PPP capacity.
Assessing the influence of Job Insecurity and Intellectual obsession of the staff on Organization Productivity.
by Seyed Fathollah Amiri Aghdaie, Amin Elhami, Morteza Raei Dehaghi
Abstract: The purpose of this study is to assess the influence of job insecurity and intellectual obsession of the staff on organisational productivity based on a descriptive-correlational study. The statistical population of the study includes the staff of the branches of Mellat Bank in Isfahan City of Iran. The statistical sample was calculated using Cochran formula for a limited population of 193 people and random sampling method was available. Questionnaire was used for data collection. The validity of the questionnaire was assessed by face and structure method (confirmatory factor analysis) and the reliability of the questionnaire were confirmed by Cronbachs alpha method. Data analysis was performed using SPSS-22 and Amos-21 software using structural equation modelling. The results of the research hypotheses showed that the job insecurity had a positive and significant effect on staff. Intellectual obsession had direct impact factor of 0.882 and significant level of 0.000. Also, job insecurity had positive effect on organisational productivity with direct impact factor of 0.953 and significance level of 0.000; however, intellectual obsession behaviour has no effect on organisational productivity with direct impact factor and significance level of 0.724 and coefficient of minus 0.044.
Keywords: organisational productivity; intellectual obsession; job insecurity.
The Price Registration System in Centralized Public Procurement of ICT Goods and Services in Brazil
by Waldemiro Francisco Sorte Junior
Abstract: This paper is based on a case study conducted in the Centralized Procurement Department of the Ministry of Economy in Brazil and provides empirical evidence of the advantages and disadvantages of an instrument for aggregated procurement known as the price registration system (SRP). The case study examined seven procurement processes for the acquisition of information and communication technology (ICT) goods and services conducted by the department in 2020 and identified cost reduction, the development of robust specifications and the elimination of duplicated tasks as some of the advantages of the SRP. In addition, the SRP provides greater flexibility for public bodies as they can enter into contracts according to their real demands and when the need emerges, using the registered prices. This paper also points out deficiencies of the SRP and indicates possible directions for improvement.
Keywords: aggregated procurement; centralised public procurement; information and communication technology; ICT; price registration system; framework agreement; Brazil.
A meta-synthesis of factors influencing auditor's reasoning
by Morteza Shafati, Mohammadreza Abdoli, Hasan Valiyan
Abstract: Reasoning is a sign of logical thinking and is generally considered as a mental talent that acts in a completely rational way. In the present study, factors improving reasoning are introduced. The research methodology is combined and done in a one-year period (February 2019-February 2020). In the qualitative part which was based on meta-synthesis, effective variables on auditors' reasoning were examined by theory fundamentals and extracting open codes using MAXQDA 11 software. By considering previous literatures, variables were classified in 26 codes, seven themes, and three categories including background, organisational, and personal factors. The results showed that adherence to ethics, knowledge and skills of a certain industry, supportive attitude, confirmation free of bias, using exploratory methods, data analysis, accountability, and social responsibility may be most important factors effective on auditors' reasoning.
Keywords: auditor's reasoning; judgment quality; reasoning improvement; auditor's logic; professional skills.
Inventory model for deteriorating items with ramp type demand under permissible delay in payment
by Ashish Sharma, Jitendra Kaushik
Abstract: Permissible delay in payment is a common method of payment often used by the suppliers and it generally leads to higher sales and ultimately higher revenue. This method is significant in the case of deteriorating products. In this paper, an inventory model for the deteriorating items with price and time-dependent ramp type demand is presented with shortages allowed and partially backlogged. The solution procedure is illustrated by numerical examples. The concavity of the profit function with respect to the decision variable is discussed analytically. Numerical analysis shows that the profit per unit time increases with the delay payment facility.
Keywords: nonlinear demand function; permissible delay; deterioration; shortage.
The impact of e-learning through social networks on performance of employees in Iran's customs
by Kamyar Esmaeili Nasrabadi, Azar Kaffashpoor
Abstract: Education and learning by social networks as a new paradigm transformed this field. Educational methods of learning through cyberspace are in a way that make learning more interesting, motivating, exciting, and meaningful, and involve the individual's body, soul, and mind in the learning process; provide basic and primary skills to employees; and prepare them to deal with the problems they will face in future. The present study aimed to investigate the effect of e-learning through social networks on performance of employees in customs of Khorasan Razavi province in Iran. The statistical population of this study includes all employees of the Customs House of Khorasan Razavi province who work in a central office and nine affiliated offices. Using Morgan's sample size estimation table, 250 people were selected as the statistical sample. A questionnaire was used to collect the data. Structural equation method has also been used for data analysis. The results suggested that social networks mediate the relationship between e-learning and employee performance.
Keywords: learning through cyberspace; employee performance; customs of Khorasan Razavi province; Iran.
Knowledge transfer in institutionalised supplier development initiatives: the moderating role of institutional factors
by Shem Sikombe, Maxwell A. Phiri
Abstract: Public procurement as a tool for socio-economic development has attracted considerable attention from supplier development researchers. Supplier development strengthens the management of suppliers and improves their capabilities through knowledge transfer. The article examines how institutionalised supplier development initiatives are associated with knowledge transfer and the moderating role of institutional factors. The article applied multiple regression and moderation analyses on a sample of 171 contractors. Findings reveal that training and the 20% subcontracting policy are significantly associated with knowledge transfer, while the construction finance, preferential, and reservation schemes are not. Regulatory compliance and government support moderate the relationship between institutionalised supplier development and knowledge transfer. Interactions indicate that low regulatory compliance is associated with high knowledge transfer, while government support is associated with high knowledge transfer at all levels. The article contributes to research by demonstrating the influence of regulatory compliance and government support on the implementation of institutionalised supplier development.
Keywords: knowledge transfer; institutionalised supplier development; ISD; institutional factors; small and medium-sized contractors; construction industry.
Blockchain-IoT-based risk management approach for project procurement process of asset propelled industries
by Santosh B. Rane, Prathamesh R. Potdar
Abstract: In a competitive business environment, asset propelled industries (APIs) are prefer purchasing over manufacturing to achieve strategic business objectives. Therefore, project procurement management (PPM) processes are associated with many risks. Hence, APIs are looking for solutions to reduce the probability of risk involved in PPM process. A systematic literature survey (LS) has identified a total 55 risks involved in the PPM process, out of which 14 critical risks were identified by using fuzzy logic with TOPSIS method and results were compared with PROMETHEE method. Blockchain-IoT integrated architecture has been developed to manage the critical risks involved in PPM process and nine strategies are suggested based on architecture. Blockchain-IoT integrated architecture can change PPM process with respect to data (real-time acquisition, storage and accessibility), speed of response and quality of communications, data driven decision-making, and transparent, auditable and trustworthy transactions. Integrated architecture improves the flow of knowledge throughout organisation and reduces person dependent activities.
Keywords: project risk management; PRM; blockchain technology; internet of things; IoT; TOPSIS; PROMETHEE.
Going green? Investigating the role of GSCM practices on firm financial and environmental performance through green innovation
by Kanwal Iqbal Khan, Zwaid Babar, Sumaira Sharif, Suhaira Iqbal, Maryum Iqbal Khan
Abstract: Green supply chain management (GSCM) is considered the provenance of best performance in every organisation around the world. Its efficient implementation leads to increase the green innovation activities, but its role remained less explored in the literature. In this study, we intended to explore how the execution of GSCM practices links with the improvement of the firm financial and environmental performance that support the concept of environmental friendly products. Data from 413 employees of GSCM award-winning companies of Pakistan were collected through a questionnaire survey. Variance-based structural equation modelling (PLS-SEM) was used to test the proposed structural model. The results suggested that GSCM practices positively affect green innovation that in turn enhances the firm financial and environmental performance. The study contributes to the GSCM literature by providing managerial implications of improved firms' financial performance with an environmental solution.
Keywords: green supply chain management; GSCM; environmental friendly products; financial performance; green innovation; environmental performance; GSCM practices.
Inventory policies for non-instantaneous deteriorating items with preservation technology investment under price-sensitive time-dependent demand
by Nita H. Shah, Pratik H. Shah, Milan B. Patel, Wakhid Ahmad Jauhari
Abstract: In this paper, we formulate a mathematical inventory model for non-instantaneous deteriorating items under price-sensitive and quadratic time-dependent demand. Products in the inventory system are considered to be deteriorated at a constant rate after a certain time of periods. Preservation technology investments are taken into account to reduce the deterioration rate. The objective of the model is to find the optimal cycle time, selling price, preservation cost and ordering quantity in order to maximise the total profit of retailer. An iterative procedure is proposed to solve the mathematical problems and its application is validated with a numerical example. The results from sensitivity analysis show that by investing money in preservation technology, the retailer can set a cheaper selling price and increase the total profit. It is also observed that the changes in holding cost and cost price significantly affect the optimal values of selling price and cycle time.
Keywords: inventory model; deterioration; price-sensitive time-dependent demand; preservation technology.
Influence of contract management on value for money procurement in Tanzania
by Mordecai C. Matto, Ahmed M. Ame, Paul M. Nsimbila
Abstract: The purpose of this study was to find out the influence of contract management on value for money procurement in Tanzania. The study used a quantitative approach and cross-section survey design in data collection and analysis. The data were collected from 164 procurement entities. Data analysis was mainly based on descriptive and inferential statistics. The findings show that contract formation and quality control are significant attributes that enhance value for money. Conversely, the contract administration, time control, and cost control were not significant attributes to predict a value for money. Empirically, this study contributes to the existing knowledge of procurement contract management by linking the attributes of contracts and value for money. Thus, the study concludes that effective and efficient contract management enhance value for money in Tanzania public procurement.
Keywords: procurement; contract management; procuring entities; value for money; VfM; contract formation; contract administration; time control; cost control; quality control; Tanzania.
Advancing small and medium-size enterprises' performance by adopting marketing and service innovation
by Aram Hanna Massoudi, Sahar Jalal Fatah
Abstract: Small and medium-size enterprises (SMEs) play a significant role in Iraqi economic growth. However, according to Iraq Ministry of Trade, the numbers of SMEs in Iraq are fading every year since 2006. Therefore, this current study explores the influence of marketing innovation and service innovation on improving SMEs business performance. This study uses qualitative approach. The data were collected from a questionnaire distributed to 128 SMEs in various Iraqi cities. Pearson correlation analysis was used to test the research hypothesis. The result showed that collectively the two factors, marketing and service innovation have positive influence on SMEs business performance. The findings of this study provide insights into how managers and owners at SMEs can enhance the performance. This can be done by implementing marketing and service innovation. Also, it is importance to economic theorist and practitioners looking for ways to improve their business performance. The scope of this article is limited to only SMEs, specifically private enterprises in Iraq.
Keywords: small and medium-size enterprise; SME; marketing innovation; service innovation; explorative innovation; exploitive innovation; performance.
Designing a fuzzy approach for innovative model to empower the auditor's argument
by Morteza Shafati, Mohammadreza Abdoli, Hasan Valiyan
Abstract: In this study, we introduce the factors that can improve the argument. With the help of 13 experts in the field of auditing, accounting and finance, 24 factors affecting the argument in two Delphi repetitions have been calculated. With the help of comprehensive fuzzy interpretive structural modelling method, the factors are modelled at 11 levels. In the lowest level of the comprehensive structural model of comprehensive interpretation, the auditor's intelligence and experience, auditing and accounting standards and audit instructions are considered as influential factors and are at the highest level of the model. Adequacy and transparency in information have been extracted as linking factors, which shows that the emphasis of auditors and managers on these factors can improve the strength of the auditor's reasoning. Finally, with help of experts and research background, why the relationship and interpretation of these relationships in the model.
Keywords: auditor's reasoning; judgment quality; reasoning improvement; fuzzy-TISM.
Good governance practices in procurement operations and quality procurement: a comparative study between public and private sector organisations in Bangladesh
by Md. Kamal Hossain, Md. Zohurul Islam
Abstract: Good governance practices in the procurement process and quality procurement are the greatest desires for all type of organisations in local and global perspectives. This study has given a focus on quality procurement and its tools with good governance practices both in public and private sector organisations in Bangladesh to compare the level of quality procurement. In this study, it has been found that most of the indicators of good governance practices and quality procurement of private sector are much better than public sector organisation. The major analysis has been accomplished by mean values with standard deviation and radar diagram tool. Moreover, Mann-Whitney U test is used to analyse comparative results of independent variables in both organisations.
Keywords: procurement operations; quality procurement; public and private organisations' procurement; good governance practices; Mann-Whitney U test; radar diagram.