International Journal of Procurement Management (42 papers in press)
The effect of purchasing strategy on the economic production quantity model subject to random machine breakdown
by Farzad Dehghanian, Mehdi Deiranlou, Mohammadali Pirayesh
Abstract: In this article, we develop an economic production quantity (EPQ) model subject to process deterioration, machine breakdown and two types of repair, and study the influence of purchasing strategy on the systems expected total cost, as an alternative option to holding safety stock. We assume that the manufacturer could purchase some quantities from an available supplier with fixed non-zero lead-time This paper looks for the optimal value of production lot size and purchasing lot size in order to minimize the expected total cost The model is developed under general machine breakdown and repairs time distributions The optimality of the model under exponential failure and exponential repair times are studied For the numerical example, we illustrate the outcome of the proposed model and perform a sensitivity analysis on parameters, which directly influence optimal decisions.
Keywords: Economic production quantity; process deterioration; Machine breakdown; Defective items; Purchasing.
An empirical analysis of Lisbon hotel room rates determinants
by Conceicao Gomes, Luís Lima Santos, Cátia Malheiros
Abstract: This study investigates the impact of several characteristics and attributes of hotels on room rates in one of the most visited cities in Europe. The research allows to compare, in a transparent way, findings of previous studies and promotes added value using for the first time the Hedonic Price Model (HPM) in the hospitality industry in Lisbon, Portugal. Although hotel room price determinants have already been studied, in this study it was introduced physical variables and location variables all together, as well as it was added the variables relating to certain services offered. A significant impact on hotel prices by official stars and OTAs punctuation has been confirmed. In line with previous studies, an additional star and belonging to a chain allow the hotel to increase the price. In addition, other attributes, such as the distance of the hotel from the airport and the centre, have impact on hotel prices.
Keywords: Hedonic price model; hotels; Lisbon; pricing; room rates.
Corporate Social Responsibility Regulation and Its Adoption by Transnational Corporations in Indonesia: The Case of Chevron Indonesia
by Firman Hasan, Sri Oktavia
Abstract: Corporate Social Responsibility (CSR) has become an important concept within the global business community and actors. However, how CSR-related laws can be adopted and implemented remains unclear and it is still under-represented in research. This paper aims to answer the question as to how CSR regulations are adopted into business strategy and implemented by Transnational Corporations in Indonesia. This study uses a qualitative approach with the case study as its research strategy. The case study concerns Chevron Annual Reports and Corporate Responsibility Reports from 2006 to 2015. Interviews took place at Chevrons Jakarta headquarter and Geothermal Salak in West Java, Indonesia. The interview scripts have been coded by applying the latent coding scheme, in which the themes and categories are inductively derived from the transcripts. The study found that the enactment of Law No 40/2007 on Limited Liability Company and other CSR-related policies have no significant impacts on Chevron Indonesia.
Keywords: Corporate Social Responsibility; Transnational Corporations; Corporate value; Chevron.
A Meta-Synthesis of Factors Influencing Auditor's Reasoning in MAXQDA Software
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, done in a one-year period (February 2019February 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. 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; Professionals Skills.
Two Inventory Models for Instant and Delayed Deteriorating Items with Price and Time Dependent Seasonal Demand
by Ashish Sharma, Amit Kumar Saraswat
Abstract: Deterioration is one of the basic assumptions of inventory models so the analysis of inventory models with deterioration will provide more realistic insights. In this paper we developed two inventory models with instant and delayed deterioration rate. Price and time dependent seasonal demand function is considered. In both the models we have an option that after some successive demand seasons whether we can continue with the same price or we can change the selling price. Analytical and numerical analysis provides important managerial insights. Numerical analysis shows that it better to reduce the price after some initial seasons with instant deterioration while with delayed deterioration selling price must be unchanged for as much as possible seasons.
Keywords: inventory; deterioration; seasonal demand; price and time dependent demand; partial backlogging.
Determinants of Purchase Intention of Halal Packaged Food among Non-Muslim Consumers
by Muhammad Syukur, Dej-anan Bungkilo, Chatrudee Jongsureyapart
Abstract: This paper is to fulfil the request from academicians for expanding the previous research, which took Thai Muslim consumers as the samples. This research aims to test the determinants of purchase intention from Thai non-Muslims on halal packaged food. Multiple regression analysis is applied to the data from 193 respondents representing all four regions in Thailand. It is found that the place, promotion, and awareness are determinants for purchase intention on halal packaged food. By matching the result of the related research on Thai Muslims, it is concluded that place (product availability) and awareness are determinants of purchase intention of halal packaged food among both Muslims and non-Muslim in Thailand.
Keywords: Purchase intention; halal food; Thailand; non-Muslims; marketing mix; theory of planned behaviour; halal awareness; knowledge about halal food; religiosity level.
Knowledge and utilization of the Uniform System of Accounts for the Lodging Industry: evidence from Portugal
by Maria Joao C. V. Machado, Miguel Sampaio Silva
Abstract: The specific objectives of this study are: to analyse the rate of knowledge dissemination about the uniform system of accounts for the lodging industry (USALI) and its association with the characteristics of the hotels financial managers; to analyse the utilisation rate of this method and its association with the hotel features. The data collection was carried out through a survey addressed to the financial managers of 3, 4 and 5-star hotels located in Portugal, and 189 completed surveys were obtained. The results obtained allow us to indicate as main contributions the following: to demonstrate the existence of associations between the financial managers characteristics and the knowledge of the USALI, proving statistically that gender, age, and the graduation level and area influence the knowledge of the USALI; to demonstrate the existence of associations between integration in a hotel chain and the use of the USALI.
Keywords: Uniform System of Accounts for the Lodging Industry; USALI; hotel features; financial managers characteristics.
SMALL STATES, HIGH STAKES: A POLICY PROPOSAL TO DELIVER WELFARE VIA PUBLIC PURCHASING
by Laura Panades
Abstract: The article shows how and to what extent Caribbean British Overseas Territories (BOTs) can integrate social award criteria in public procurement. In the past decade, BOTs have experienced economic distress, political misdemeanours and rising perceptions of corruption. Lacking public procurement experience, how can these small, remote and socially unequal territories make the most of UK-led reforms? This research comes at a time when their public procurement frameworks are in their infancy and looking for ideas. Experience in the EU, the UK and the Latin America and Caribbean region show successful results, primarily in small communities at the local level. The methodology used is desk-based research leading to a worldwide survey of successful practices and a legal and policy analysis on its application to Caribbean BOTs.
Keywords: sustainable procurement; strategic procurement; award criteria; welfare; Caribbean; British Overseas Territories.
The moderating effect of supply chain eco-centricity between green supply chain management practices and firms performance
by Abdoul Bataineh
Abstract: This study aimed to investigate the moderating effect of supply chain eco-centricity on the relationship between green supply chain management dimensions firms performance. A self-administered questionnaire was distributed on three well-known firms in the industrial sector in Aqaba-Jordan, from which total (313) questionnaires were administered to selected respondents. The study used descriptive statistics and multiple regression models to determine the level of significance among selected variables. Findings revealed that green procurement significantly and positively affect firms performance. The results of the multiple regression analysis revealed that there is no significant effect of supply chain eco-centricity in the relationship between green supply chain management dimensions and firms performance in the industrial sector, p > 0.05 (p = 0.9057). Conclusively, the result implied that an increase in performance of manufacturing firms is likely through embracing green procurement practices within the upstream of supply chain.
Keywords: green supply chain management; green procurement; green manufacturing; green distribution; supply chain eco-centricity; Jordan.
Designing an Innovative Leadership Model (Case study: Saipa Automotive Group)
by Hamid Torki, Ali Nasr Isfahani, Mehdi Abzari, Hadi Teimouri
Abstract: The present study aims at designing and testing the model of innovative leadership in SAIPA Corporation Automotive Group. The research method used in this study is mix method. In the first part, a qualitative study has been carried out using grounded theory. The researcher, using theoretical sampling, has selected the sample and collected the required data using in-depth and semi-structured interviews, and has achieved theoretical saturation by 12 useful interviews with Saipa Automotive Group senior executives and professors in the field of human resource management and organisational behaviour. Data analysis was done using MAXQDA software, and after conducting open, axial and selective coding, an innovative leadership model was developed according to grounded theory. In the quantitative part, the statistical population consisted of senior, middle and operational executives of Saipa Automotive Group (3,850 people) among which, 350 have been considered as the sample size. Based on a researcher-made questionnaire extracted from the qualitative section, the data were collected, and after examination of validity and reliability through structural equation modelling, the compiled hypotheses were examined. The obtained results indicate a significant impact of causal conditions on the phenomenon of innovative leadership, the significant impact of contextual and intervening conditions on innovative leadership strategies and the positive impact of strategies on outcomes of the model.
Keywords: innovation; innovative leadership; Grounded Theory; Saipa Automotive Group.
Prioritizing potential locations to determine distribution warehouses by fuzzy multi-criteria decision-making approach
by Arash Shahin, Namatolah Mohseni, Ahmad Reza Shakarchizadeh
Abstract: This study is aimed at selecting the location of warehouses and the distribution of goods in a distribution network using fuzzy TOPSIS and fuzzy AHP methods. According to experts, several potential areas for Esfahan Steel Company warehouses were identified to test the model. The statistical population of this study includes all cities in the country. The purpose of this study was to determine the location of warehouses and the distribution of goods in a distribution network. Fuzzy TOPSIS and fuzzy AHP methods have been used for this purpose. The main findings indicate that six cities of Tehran (Khorasan Road), Shiraz, Kerman, Mashhad, Rasht, and Hamadan are suitable as central warehouses of Esfahan Steel Company. Also, to commercialise the proposed priorities, six suggestions including branding, rail freight development, defining new delivery terms, defining the goals and strategies of warehouses and agencies, controlling virtual needs, and blocking products in warehouses are presented.
Keywords: warehouse location; distribution network; fuzzy TOPSIS; fuzzy AHP; prioritisation.
Blockchain-IoT based risk management approach for Project Procurement process of Asset Propelled Industries (API)
by Prathamesh Potdar, Santosh Rane
Abstract: In a competitive business environment, API are preferring purchasing over manufacturing to achieve strategic business objectives. Therefore, project procurement management (PPM) processes are associated with many risks. Hence, API are looking for solutions to reduce the probability of risk involved in PPM process. A systematic literature survey (LS) has identified 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 organization and reduces person dependent activities.
Keywords: Project risk management (PRM); blockchain technology; Internet of Things (IoT); TOPSIS; risks involved in project procurement management process.
Payment Delay in Supply Chain Management: A Systematic Literature Review
by Salah Eddine Mohamed Hicham, Tarik Saikouk, Abdelaziz Berrado
Abstract: There is a general agreement in the literature that the payment delay (PD) is one of the strongest reasons for nowadays business failures. This paper studies PD in supply chain management (SCM) literature by providing a systematic literature review (SLR) of exclusively high ranked journals in the field of operation management. The authors identified five major issues in supply PD, namely inventory, cash flow, financial decision, supply chain (SC) coordination, and demand. They also discerned a growing trend in the literature related to analytical studies, which limits the generalisation of the findings, mostly due to the various assumptions used in the modelling process. The majority of these papers focused on the retail field because of its coordinated structure. This paper suggests that PD, as a coordination tool, can improve both the suppliers and retailers profit. The paper concludes by suggesting a conceptual framework that summarises how PD influences the issues addressed above. The authrs, pinpoint potential future areas such as simulation under dynamic scenarios, including multi-echelon partners in order to better gauge the impact of PD on SC performance.
Keywords: payment delays; supply chain; systematic review.
WHAT MAKES EMPLOYEES RESPOND TO DIFFERENT TYPES OF ORGANIZATIONAL COMMITMENT?
by Blanca Rosa Garcia-Rivera, Alireza Khorakian, Héctor Mauricio Serna-Gómez, Jesús Everardo Olguín-Tiznado, María Concepción Ramírez-Barón, Mónica Fernanda Aranibar-Gutiérrez
Abstract: This study aims to compare the type of organizational commitment in two manufacturing facilities employees We compared also the employees profile to find answers of what kind of employee relates to each type of commitment and why both companies present so different results An analysis of k-means clusters under the k-nearest neighbor method was carried out for identifying subgroups inside the studied sample which was 254 direct employees Profiles with elevated affective commitment scores indicate that employees feel emotionally attached to the organization Additionally, two analyses of variance were performed; one for identifying significant differences in the dimensions that conform organizational commitment and sociodemographic aspects, such as age, marital status, gender and seniority; the second one as a means to identifying differences among items that conform job stability, and the clusters previously identified by k-means clusters analysis Results show that affective commitment was higher in one of the facilities, while
Keywords: organizational commitment; EPZ; affective commitment; normative commitment; continuance commitment; Maquiladora.
Knowledge transfer in institutionalised supplier development initiatives: The moderating role of institutional factors
by Shem Sikombe, Maxwell 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 effect 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; Institutional Factors; Small and medium-sized contractors; Construction Industry.
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. Shortages are 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: Non Linear demand function; permissible delay; deterioration; Shortage.
Public Private Partnerships and Continuity of Government Service Delivery in the era of Coronavirus Outbreak in Sub-Saharan Africa
by Alex Nduhura, Lukamba Muhiya Tshombe, Thekiso Molokwane, Ivan Twinomuhwezi, Innocent Nuwagaba
Abstract: Public private partnerships (PPPs) remain a popular delivery mechanism by governments across the world. However, there is dearth of literature on popularity and performance of PPPs in the COVID-19 era, mainly in Sub-Saharan Africa (SSA) where PPP concessions in service delivery are new and increasing. The purpose of this study is to evaluate the effects of COVID-19 on PPP concessions and identify appropriate strategies to keep them afloat during uncertain times. Based on systematic review of literature and documents, the study noted that while pandemics such as bubonic plague; Spanish flu; HIV/AIDS; SARS; the avian bird flu and Ebola existed before, they did not plunge the whole world into largescale socio-economic disruption and lockdowns like COVID-19 pandemic. Continued delivery of public services through PPPs by governments may be frustrated by COVID-19 unless credit guarantee schemes; renegotiating concessions; finance for equity swaps and concession extensions are adopted as requisite strategies.
Keywords: COVID-19; public private partnerships; service delivery; recessions; job losses.
Designing a Fuzzy Approach for Innovative Model to Empower the Auditor's Argument
by Mohammadreza Abdoli, Morteza Shafati, Hasan Valian
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 2 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: Auditors Reasoning; Judgment Quality; Reasoning Improvement Fuzzy Total Interpretive Structural Modelling (Fuzzy-TISM).
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.
Advancing Small and Medium-Size Enterprises' Performance by Adopting Marketing and Service Innovation
by Aram Massoudi
Abstract: Small and Medium size Enterprises (SMEs) play a significant role in Iraqi economic growth. However, according to Iraq Ministry of Trade, the number 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. A Pearson correlation analysis were 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 Enterprises; Marketing Innovation; Service Innovation; Explorative Innovation; Exploitive Innovation; Organizational Performance.
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.
Inventory Policies for Non-instantaneous Deteriorating Items with Preservation technology investment under Price-sensitive Time-dependent demand
by Wakhid Ahmad Jauhari, Pratik Shah, Milan Patel, Nita Shah
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 maximize 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; Preservation technology; Price sensitive time dependent demand.
Influence of Contract Management on Value for Money Procurement in Tanzania
by Mordecai Matto, Ahmed Ame, Paul 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; contract formation; contract administration; time; cost; quality control.
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.
Good Governance Practices in Procurement Operations and Quality Procurement: A Comparative Study between Public and Private Sector Organisations in Bangladesh
by Md Kamal Hossain
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.
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 Akila Pramodh Rathnasinghe, Udayangani Kulatunga, Muhammad Imran Zin Zawawi
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.
Going Green? Investigating the Role of GSCM Practices on Firm Financial & Environmental Performance through Green Innovation
by Kanwal Khan, Zawaid Babar, Sumaira Sharif, Suhaira Iqbal, Maryum Iqbal Khan
Abstract: Green supply chain management (GSCM) is considered the provenance of best performance in every organization 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; Environmental Friendly Products; Financial Performance; Green Innovation; GSCM Practices; Environmental Performance.
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.
The impact of e-learning through social networks on performance of employees in Irans 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, more motivating, exciting, and meaningful, and involve the individuals 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 Morgans 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.
The Cybersecurity Governance in Changing the Security Psychology and Security Posture: Insights into E-Procurement
by Yudi Fernando, Anisha Banu Dawood Gani
Abstract: Security is a consistent and growing concern for e-commerce and e-procurement solutions which demand for secure transactions to ensure the confidentiality, integrity and availability of data. E-procurement is vulnerable to cyber-attacks resulting in increasing demand for cybersecurity governance. Cybersecurity governance is needed to manage the cyberattacks and ensure the important assets of the company is well protected. The aim of this study is to identify the practices for an effective cybersecurity governance by examining and synthesizing existing cybersecurity and cybersecurity governance maturity models and framework from the literature and industry. This study has selected and compared prominent cybersecurity maturity models such as Cybersecurity Governance Maturity Model (CSGMM) and Cyber Preparedness (Cyber Prep) framework by adapting the taxonomy of software improvement environments method. From the synthesis, twelve (12) practical measures were identified and recommended to manufacturing firms for an effective cybersecurity governance.
Keywords: Cybersecurity; E-Procurement; Cybersecurity Governance; Cybersecurity Maturity Models; Cyber Prep; CSGMM; Maturity Models.
Optimisation on multi-period raw material procurement and product mixing under uncertain demand via probabilistic multi-objective model approach
by S. Sutrisno, S. Solikhin, Purnawan Adi Wicaksono
Abstract: Raw material procurement and product mixing planning are two important components in manufacturer industries, based on the fact that they contribute significantly to production cost and profit. This article describes a newly developed mathematical model in the form of multi-objective optimisation, as an alternative approach that is possibly used to improve a multi-period raw material procurement and product mixing plan under uncertain demands. This process is initiated by the formulation of two objective functions, including the amount of the output to be produced, which ought to be maximised, and the minimisation of raw material procurement cost. Subsequently, a weighted objective function was formulated for use in the calculation of Pareto solution, and the optimisation problem was resolved to obtain ideal values for all decision variables. In addition, numerical experiments were also performed, in the model evaluation, resulting in the peak value for each decision variable.
Keywords: raw material procurement; product mixing; bi-objective optimisation; Pareto optimal.
The impact of power on the depth of sustainability collaboration in the supply chain network for Australian food retailers
by Hadi Rezaei Vandchali, Stephen Cahoon, Shu-Ling Chen
Abstract: The purpose of this paper is to investigate the impact of supplier power within supply chain networks (SCN) on the depth of sustainability collaboration with their focal firms. A web-based survey was applied to two large Australian retailers' SCNs which resulted in receiving 67 completed questionnaires. A cluster analysis was conducted to create a suppliers' power taxonomy. ANOVA and Tukey tests were also used to explain the mean differences in the depth of collaborative relationships. This paper identifies four quadrants for suppliers based on their power at both network and node levels, highlighting the impact of power on the depth of collaboration in each quadrant. The results also indicate that the depth of collaboration between the focal firm and its suppliers increases when the suppliers' power increases at the network level and decreases at the node level.
Keywords: power; sustainability practices; supply chain network; SCN; focal firms; retail.
Big data in purchasing and supply management: a research agenda
by Ala Pazirandeh Arvidsson, Patrik Jonsson, Riikka Kaipia
Abstract: This study aims to synthesise knowledge about big data (BD) in the area of purchasing and supply management (PSM) and to develop an agenda for future research. A systematic literature review approach was employed, and 65 articles were synthesised based on a classification for BD in PSM to identify research gaps and opportunities. Literature in this area is descriptive and conceptual in nature, and modelling methods are favoured. BD applications were identified for supplier selection, supply risk management, and supply visibility. Based on the complexity of access and use of BD, we identify a need for contextualised theory-building studies.
Keywords: big data; literature review; purchasing and supply management; PSM; data analytics; research agenda.
Affective-cognitive nature of engagement: correlating psychological capital and core-self-evaluations to work engagement via positive affects
by Maryam Firouznia, Seyed Hasan Hosseini, Mohammad Mehdi Maleki Karamabad
Abstract: The objective of this paper is primarily to hypothesise that personal resources, positive affects and work engagement are reciprocally associated with each other. In particular, by applying broaden-and-build theory, it seeks to demonstrate the predictive value of positive affects and individual resources for engagement by incorporating both core-self-evaluations and psychological capital as individual-level determinants of engagement. The research methodology is qualitative with the empirical field. The qualitative data analysis was conducted using content analysis. Hence, it is developmental at result and applicable from goal perspective. With reference to empirical studies and existing research on engagement, the proposed conceptual models through three gain spirals confirms the reciprocal relationships of personal resources-positive affects, positive affects-work engagement, and finally work engagement-personal resources, which is in accordance with the cognitive-affective state of engagement. The study can deepen the insights on how individual resources and positive affects interact in their contribution to work engagement. More importantly, this paper is the first to elucidate the cognitive-emotional nature of work engagement via presenting a comprehensive gain cycle considering individual resources as a cognitive representative, on the one hand, and positive emotions as an affective representative on the other hand.
Keywords: work engagement; personal resources; psychological capital; core-self-evaluations; positive affects; broaden-and-build theory.
Designing and explaining a professional ethics model for the managers of the banking industry, using the grounded theory strategy
by Azar Kaffashpoor, Mosayeb Samanian, Hadi Rahmdel
Abstract: The purpose of this study was to design and explain a model of professional ethics for bank managers, and also identifying its dimensions and components. The research strategy used in this study is the grounded theory with a Glaserian (emergent) approach. To collect the data, a semi-structured targeted sampling (using the snowball method) was conducted. Fifteen interviews with bank managers were done to reach a theoretical conclusion. The required data were collected and analysed. After the continuous process of data comparison and selective codifying, the total collected data were classified into 403 primary concepts, 23 categories and three groups. The final result of the collected data analysis led to the final model of research about the core issue, as the 'professional ethics for bank managers'. The bank manages' professional ethics were classified into three dimensions: individual, organisational and cross-organisational. Based on the findings of this study, this model can be considered and used as a guide for organisational and professional ethics for bank managers.
Keywords: professional ethics; bank managers; grounded theory; Glaserian (emergent) approach.
Emotional intelligence in procurement management
by Dirk-Jan F. Kamann, Edit M. Kővári
Abstract: This contribution describes the role of emotional intelligence (EI) in procurement management (PM) and how to successfully operationalise and measure this concept. A literature review presents a well-tested questionnaire, which is applied in a survey among members of a national professional organisation in PM. These managers' self-control is found to be higher than in other surveys with other types of managers; their well-being level however is lower. This suggests that PM managers can control their emotion well, but they 'pay the price' in their happiness, optimism and self-esteem. In addition, male managers' self-control and well-being is found to be higher than their female counterparts. Demonstrating the possibility to operationalise EI in a reliable way, this study opens an agenda to relate various EI dimensions to a vast range of endogenous variables such as performance variables and exogenous variables like customer typology, nature of the supply system or the internal arena.
Keywords: emotional intelligence; empathy; procurement; purchasing and supply chain management.
An inventory model with stock-dependent demand under trade-credit policy and fixed life-time
by Nita H. Shah, Kavita Rabari, Ekta Patel
Abstract: In inventory management, deterioration has a great impact on total profit. To develop business strategies in competitive market, stock-dependent and price-sensitive demand rate is considered to attract more customers. The holding cost and deterioration rate are time-dependent. The product considered has fixed life-time. The model considers the trade-credit policy that is the retailer will offer a certain time period to the customers to settle the account to increase the sales during the permissible period. The objective is to maximise the total cost with respect to cycle time and selling price. The classical optimisation method is used to find the optimal solution. A sensitivity analysis of optimal solutions for different inventory parameters is carried out. The managerial insights are deduced for the retailer.
Keywords: selling price; deterioration; trade-credit; stock-dependent demand; time-dependent holding cost; sensitivity.