Kati Loijas, Aki Jääskeläinen and Elina Karttunen
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic…
Abstract
Purpose
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic capabilities of a supplier and a buyer.
Design/methodology/approach
The study is based on the qualitative analysis of 20 interviews with informants representing Finnish public organizations and their private sector suppliers. The analysis is aligned with a theoretical framework connecting the phases of procurement and the capability types studied.
Findings
The findings of the study present the role of operational and dynamic capabilities of a buyer and a supplier in the implementation of performance-based procurement at public procurement phases. Preprocurement phase is found to greatly benefit from all three dynamic capabilities, while operational capabilities suffice in the contracting phase.
Social implications
Increased understanding on capabilities needed in performance-based procurement can increase the chances of success in reaching better value for money of public services and developing supplier markets.
Originality/value
The study contributes to the literature on performance-based public procurement and value-based selling by taking a dyadic approach to the operational and dynamic capabilities needed in business with an emphasis on performance. As the focus in public procurement shifts increasingly from resources to performance, involving a joint effort between buyer and supplier, the study provides insights into role of dyadic capabilities and explains how dynamic and operational capabilities together support the phases of performance-based procurement implementation in the public sector.
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Elina Karttunen, Aki Jääskeläinen, Iryna Malacina, Katrina Lintukangas, Anni-Kaisa Kähkönen and Frederik G.S. Vos
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Abstract
Purpose
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Design/methodology/approach
A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.
Findings
The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.
Social implications
Dynamic capabilities in public procurement are necessary to improve public procurement.
Originality/value
This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.
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Jad EL Bizri, Elina Karttunen and Katrina Lintukangas
This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related…
Abstract
Purpose
This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance.
Design/methodology/approach
A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance.
Findings
The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process.
Practical implications
Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement.
Social implications
Improving social dynamics and solutions in public procurement.
Originality/value
This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.
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Research on purchasing managers and their skills requirements supports the training and education of purchasing professionals. This paper offers an in-depth analytical review of…
Abstract
Purpose
Research on purchasing managers and their skills requirements supports the training and education of purchasing professionals. This paper offers an in-depth analytical review of the purchasing skills reported in the supply chain management (SCM) literature. The purpose of this paper is to highlight the most important skills and factors that influence these skills.
Design/methodology/approach
This paper employs a systematic literature review methodology. Two databases, Scopus and Web of Science, are searched for relevant articles. The selected journal articles are used as sources to obtain a view not only on the relevant purchasing and supply management (P/SM) skills, but also on factors that emphasize certain P/SM skills. This paper also summarizes the ten skills ranked as most important (often described as the “top ten”) among the sample articles.
Findings
The paper highlights the essential skills for purchasing professionals, verified both by their frequent appearances in rankings and by citation frequency in the literature. Generic managerial skills, such as communication, cost analysis, teamwork, problem-solving, negotiation, influencing, and persuasion, as well as information technology skills, received the most attention in the literature and rankings of the “top ten” P/SM skills. This paper provides a refined categorization of purchasing skills, which have merged recently with other discussed skills, such as political and entrepreneurial ones, into this categorization. This paper identifies factors that affect purchasing managers’ skills requirements.
Originality/value
This paper presents a structured overview of 57 peer-reviewed articles from high-quality journals about purchasing skills. The review contributes to the purchasing skills literature by showing the most relevant skills and the factors that influence skills requirements. These factors also provide arenas for further research related to purchasing skills.
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Elina Karttunen, Katrina Lintukangas and Jukka Hallikas
The aim of this study was to identify interventions for and mechanisms of the digital transformation of purchasing and supply management (PSM) processes. The digital…
Abstract
Purpose
The aim of this study was to identify interventions for and mechanisms of the digital transformation of purchasing and supply management (PSM) processes. The digital transformation of tactical and operational PSM processes has often progressed slowly despite the solid knowledge of advanced technologies.
Design/methodology/approach
This study used a qualitative exploratory approach based on 14 interviews with PSM executives from firms that are continuously working toward using advanced technologies in their PSM processes but have not yet gained full strategic benefits from digital transformation.
Findings
This study formulates five propositions regarding interventions and mechanisms that can positively influence the digital transformation of PSM processes. The main intervention in this regard is the renewal of data infrastructure, including platforms. PSM-related data should meet needs from both tactical and operational viewpoints. When applications serve as a source of data, they support digital transformation. Mechanisms such as supplier measurement and process improvement are outcomes of the digital transformation of PSM processes.
Practical implications
This study highlights the importance of common data sets for tactical and operational purchasing. These purchasing data should be owned and served by a cross-functional team. To create this interoperability, a firm needs global governance of open standards.
Originality/value
This study makes a theoretical contribution to the discussion of what kind of interventions positively influence on the digital transformation of PSM processes. Specifically, this study explains the integration needs of data and applications.
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Elina Karttunen, Mika Matela, Jukka Hallikas and Mika Immonen
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained…
Abstract
Purpose
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained limited. This research takes the perspective of suppliers and aims to investigate the innovativeness of suppliers and the impact of supply chain ambidexterity strategies on their perceptions about public procurement in terms of innovation enablers and customer attractiveness.
Design/methodology/approach
This research draws from a survey of 137 suppliers to the public sector in Finland and applies PLS-path modeling to test its hypotheses.
Findings
The findings reveal that the ambidexterity strategy of suppliers in the supply chain influences how they perceive the innovation enablers and customer attractiveness of public organizations since processes of public procurement do not support these strategies fully. Supplier innovativeness has an influence on the perceived innovation enablers of public procurement, which, in turn, influences customer attractiveness.
Practical implications
The innovativeness and strategies of suppliers for the supply chain have an impact on how attractive they perceive public procurement. The findings of this research provide insights on why the customer attractiveness of public procurement may not be high enough to secure the competition in their bidding processes.
Originality/value
The study’s contribution adds to the field of buyer–supplier relationships and customer attractiveness in public procurement by showing the importance of innovation enablers and highlighting the impact of supplier's ambidexterity in the supply chain on their perceptions about public procurement.