Sofia Lundberg and Mats A. Bergman
The purpose of this paper is to analyze how local and central authorities choose between lowest price and more complex scoring rules when they design supplier-selection mechanisms…
Abstract
Purpose
The purpose of this paper is to analyze how local and central authorities choose between lowest price and more complex scoring rules when they design supplier-selection mechanisms for public procurements. Five hypotheses are tested: a high level of cost uncertainty and highly non-verifiable quality makes the use of the lowest-price supplier-selection method less likely. Organizational habits and transaction-cost considerations influence the choice of mechanism. Strong quality concerns make complex rules more likely.
Design/methodology/approach
The analysis departures from normative theory (rational choice) and is based on the regression analysis and survey data comprising a gross sample of 40 contracting authorities and detailed information about 651 procurements.
Findings
More complex scoring rules are used more often when the authority is uncertain about costs and about delivered quality. Authority effects are also found to directly and indirectly influence the choice of supplier-selection method, suggesting that tendering design is partly driven by local habits and institutional inertia.
Practical implications
The authors argue that, from a normative point of view, lowest price is an adequate method when the degree of uncertainty is low, for example, because the procured products are standardized and since quality can be verified. When there is significant cost uncertainty, it is better to use the so-called economically most advantageous tender (EMAT) method. (Preferably this should be done by assigning monetary values to different quality levels.) If there is significant uncertainty concerning delivered quality, the contracting authority should retain a degree of discretion, so as to be able to reward good-quality performance in observable but non-verifiable quality dimensions; options to extend the contract and subjective assessments of quality are two possibilities. The main findings are that EMAT and more complex scoring rules are used more often when the contracting authorities report that they experience substantial uncertainty concerning delivered quality and actual costs and that these factors tend to decrease the weight given to price, in line with the predictions. However, the authors also find that this result is mainly driven by variations between authorities, rather than by between-products variation for the same authority. This is from a training of professionals and regulation perspective of policy relevance.
Social implications
Contract allocation based on habits rather than rational ground could implicate the waste of resources (tax payers money) as it adventures the matching of the preferences of the public sector (the objective, subject matter, of the procurement) and what the potential supplier offers in its tender.
Originality/value
Although the principles for supplier selection are regulated by law they give the contracting authority substantial freedom in designing the scoring rule and in choosing what quality criteria to use. The tension between different objectives and the more general question whether the choices made by authorities reflect rational decision making or institutional inertia together motivate the current study. While the design of the supplier-selection mechanism is an important consideration in procurement practice, it has attracted relatively little attention from the academic community.
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This study aims to empirically evaluate the effectiveness of government auditing of local authorities’ compliance with the procurement rules.
Abstract
Purpose
This study aims to empirically evaluate the effectiveness of government auditing of local authorities’ compliance with the procurement rules.
Design/methodology/approach
A diff-in-diff approach is used where the measure of compliance is (changes in) the incidence of private litigation under the Public Procurement Act, in audited vs non-audited municipalities. Further, semi-structured interviews were conducted with chief procurement officials.
Findings
No statistically significant effect is found. While strong effects of audits can be ruled out, the statistical results and the interviews do not, however, contradict a modest but long-lasting effect.
Originality/value
Few studies have addressed the effect of public procurement auditing on compliance. This study develops an empirical framework and presents empirical results.
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Joseph J. French, Michael Martin and Garth Allen
International Business, Ethics, International Legal Issues/Law, Environmental Management.
Abstract
Subject area
International Business, Ethics, International Legal Issues/Law, Environmental Management.
Study level/applicability
Upper-level undergraduates and graduate students. The case is appropriate for courses in International Law, Ethics, International Business and Strategy.
Case overview
This case is inspired by current ethical, legal, social and environmental issues that have plagued the multinational mining industry in frontier markets. The case focuses on a multitude of legal, ethical and strategic issues involving the multinational mining industry. This case describes a hypothetical assignment facing an operations manager at the fictional Minera, Inc. The assignment revolves around several dilemmas a manager must confront as he attempts to secure valuable mining licenses from the Mongolian Government while simultaneously attempting to harmonize seemingly detrimental operating practices with the organizations' stated beliefs. The case provides detailed background information on the social, economic and political climate in Mongolia, as well as the applicable laws, ethical frameworks and competitive market considerations facing multinational mining organizations.
Expected learning outcomes
This case will help students understand the complexity of international business in frontier markets; identify key international legal issues such as the foreign corrupt practices act; and recognize ethical issues and formulate economically, strategically, ethically and legally sound courses of action in complex environments.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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Rudolf R. Sinkovics, Mats Forsgren, Noemi Sinkovics and Christine Holmström Lind
Mats Janné and Anna Fredriksson
Although a construction logistics solution is necessary for dealing with the demands in many large urban development projects, there is a lack of research on governance mechanisms…
Abstract
Purpose
Although a construction logistics solution is necessary for dealing with the demands in many large urban development projects, there is a lack of research on governance mechanisms for construction logistics solutions. Therefore, the purpose of this paper is to analyse the initiation and utilisation of a construction logistics centre (CLC) from different stakeholders’ perspectives to suggest governance mechanisms for strategic, tactical and operational levels and to develop guidelines for implementing these governance mechanisms.
Design/methodology/approach
A single case research design was used. Data were collected through interviews, site visits, observations and documentation from four stakeholder groups.
Findings
There is potential for utilising CLCs in development projects, with positive effects such as consolidation effects and enhanced planning. What is evident, however, is that the design and implementation of the CLCs must be based on a comprehensive stakeholder analysis, as there are conflicting goals between stakeholders. Governance mechanisms, including flexibility in the main contractors’ working construction process, as well as clearly stated roles, responsibilities and communication must be developed to enhance this potential.
Research limitations/implications
The conflicting goals of CLCs are identified and discussed, and the results show the need for further multi-stakeholder analysis of construction logistics solutions.
Practical implications
The experiences from the studied case are developed into practical guidelines to be used in the design of construction logistics solutions in development projects.
Originality/value
This study contributes by taking a multi-stakeholder perspective on CLCs and providing guidelines to be used in the design of construction logistics solutions in development projects.
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Alex Maritz, Quan Nguyen and Sergey Ivanov
Despite the significance, university student start-ups and student entrepreneurship ecosystems (SEEs) have been subject to little research. This study aims to apply a qualitative…
Abstract
Purpose
Despite the significance, university student start-ups and student entrepreneurship ecosystems (SEEs) have been subject to little research. This study aims to apply a qualitative emergent enquiry approach to explore best practice SEEs in Australia, complimented by narratives from leading scholars in higher education institutions with the aim of delineating the integrative components of SEEs.
Design/methodology/approach
Adopting the entrepreneurial ecosystem framework and aligned to the social cognitive theory, this paper explores the components and dynamics of SEEs, contributing to an understanding of how such components can better support the growth, sustainability and success of student start-ups. The authors extend entrepreneurship research on social construction using narrative research.
Findings
The findings provide guidelines for researchers, entrepreneurship scholars and educators, entrepreneurship students, policymakers and practitioners to enhance the impact and success of university student start-ups by adopting a student ecosystem approach.
Research limitations/implications
The narratives represent a limited number of universities with an opportunity for further research to empirically measure the impact and outcomes of SEEs. The research is exploratory, inherently conceptual and emergent, providing an opportunity for validation of narrative frameworks in future studies.
Practical implications
The findings may assist university managers to be more aware of their own subconscious preferences to student entrepreneurship and start-up initiatives, which may be useful in refining their impact and offerings regarding a quest toward the entrepreneurial university.
Social implications
From social perspectives, the alignment of the components of SEE has the ability to enhance and shift the entrepreneurial mindset of entrepreneurship students, notwithstanding enhancement of intentionality and self-efficacy.
Originality/value
This is the first study of SEEs in Australia, highlighting the importance of the integration of entrepreneurship education programs, entrepreneurship education ecosystems, the entrepreneurial university and specific start-up initiatives such as university accelerators. Furthermore, students may enhance their entrepreneurial mindset by actively engaging in such ecosystems.
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Mats Å. Hallgren, Håkan Källmén, Håkan Leifman, Torbjörn Sjölund and Sven Andréasson
The purpose of this paper is to evaluate the effectiveness of the PRIME for Life risk reduction program in reducing alcohol consumption and improving knowledge and attitudes…
Abstract
Purpose
The purpose of this paper is to evaluate the effectiveness of the PRIME for Life risk reduction program in reducing alcohol consumption and improving knowledge and attitudes towards alcohol use in male Swedish military conscripts, aged 18 to 22 years.
Design/methodology/approach
A quasi‐experimental design was used in which 1,371 military conscripts from ten regimens were assigned to either a control or program intervention group. Changes in alcohol consumption, knowledge and attitudes towards alcohol use were assessed with self‐report questionnaires at baseline, and again 5 months and 20 months after the program.
Findings
Pre to post program reductions in total alcohol consumption and “high risk” consumption were reported in both the control and intervention group. There were no statistically significant group interactions over time, indicating that factors beyond the intervention alone were responsible for the reductions in alcohol consumption. Attitudes towards consumption improved significantly in both groups at five months before returning to baseline levels at 20 month follow‐up.
Originality/value
PRIME for Life is one of the most widely used alcohol and drug risk reduction programs in the United States and has recently been implemented in parts of Sweden to reduce alcohol consumption and related harm. To our knowledge, this is the first peer‐reviewed evaluation of the effectiveness of the PRIME for Life program.
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Phitcha Patchutthorn and Saloomeh Tabari
In the last few decades, the obesity rate has increased along with the increasing of away-from-home food consumption at restaurants (Wei & Miao, 2013), especially the food…
Abstract
In the last few decades, the obesity rate has increased along with the increasing of away-from-home food consumption at restaurants (Wei & Miao, 2013), especially the food consumption at quick-service restaurants (QSRs). Previous research stated that the main factors that influence the customers’ food selection are found. Price and quality of food are the most significant things that mostly concerned customers when they are in decision-making process. There is a controversial argument between several studies that identified calorie labelling on menu influences consumers on food choice, while others said vice versa. However, several studies argued that calorie information does not have as much impact on customers’ food purchasing as other factors such as food’s quality, ranges of food, price of food, restaurant’s atmosphere, and speed of food service (Carey & Genevive, 1995). The aim of this chapter is to examine the importance of representing calorie information on menu and its effects on customer decision-making especially at QSRs. Therefore, the following questions have been addressed in this chapter:
What are the factors that influence consumer choice at QSRs?
Does calorie labelling on menus impact customer purchasing at QSRs?
This chapter starts with the introduction of the topic and reviewing previous research on menu labelling and calorie information at QSRs. This chapter aims to provide a better understanding of customer decision-making when ordering a food with regard to calorie information on the menu and the customer preference.
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Zinette Bergman, Yael Teschemacher, Bimal Arora, Rijit Sengupta, Klaus Michael Leisinger and Manfred Max Bergman
The Government of India dramatically altered the dynamic between business and society when it introduced the Companies Act 2013, which mandated firms to expend at least 2 per cent…
Abstract
Purpose
The Government of India dramatically altered the dynamic between business and society when it introduced the Companies Act 2013, which mandated firms to expend at least 2 per cent of average net profits on corporate responsibility (CR) programmes. This reconfiguration of social value creation may serve as a template for a closer and participatory relationship between the private sector and government in emerging economies and beyond. This paper aims to analyse how CR expectations have taken shape in the print media in India. Specifically, the authors ask the following: What are the dimensions of CR expectations in mainstream Indian newspapers?, and Why, according to the newspaper narratives, do corporations have these responsibilities?
Design/methodology/approach
In this qualitative study, the authors randomly selected and analysed 50 per cent (n = 442) of the newspaper articles that dealt explicitly with CR. The articles appeared in the top five Indian English-language newspapers and the top two Hindi-language newspapers between 1 January and 31 December 2015. Using Content Configuration Analysis (CCA), the authors developed a typology of CR expectations and analysed their associated justifications. Finally, they used CCA to analyse how this typology and its justifications connect to the two main stakeholders: the business sector and government.
Findings
The analyses reveal how the introduction of the Companies Act 2013 had a major impact on CR expectations by explicitly and legally casting the business sector as the engine of social development. The authors were able to describe how contextual and cultural dimensions frame evolving interests and societal demands towards corporations, and how difficult it may be for corporations to fulfil CR expectations that are well beyond their core business and that reach domains usually pertaining to government.
Originality/value
This study contributes an empirical exploration of media discourse on contemporary CR expectations in India and its associated notions of social value creation, and how these are shaped by various cultural and contextual influences. The authors discuss how this novel approach to CR modifies the relations between business and society, and they reflect on the opportunities and limits of this model for other emerging economies, which struggle to formulate a symbiotic relationship between business and society.
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Mikael Ohrling, Sara Tolf, Karin Solberg-Carlsson and Mats Brommels
Decentralisation in health care has been proposed as a way to make services more responsive to local needs and by that improve patient care. This study analyses how the senior…
Abstract
Purpose
Decentralisation in health care has been proposed as a way to make services more responsive to local needs and by that improve patient care. This study analyses how the senior management team conceptualised and implemented a decentralised management model within a large public health care delivery organisation.
Design/methodology/approach
Data from in-depth interviews with a senior management team were used in a directed content analysis. Underlying assumptions and activities in the decentralisation process are presented in the logic model and scrutinised in an a priori logic analysis using relevant scientific literature.
Findings
The study found support in the scientific literature for the underlying assumptions that increased responsibility will empower managers as clinical directors know their local prerequisites best and are able to adapt to patient needs. Top management should function like an air traffic control tower, trust and loyalty improve managerial capacity, increased managerial skills release creativity and engagement and a system perspective will support collaboration and learning.
Originality/value
To the authors’ knowledge this is the first a priori logic analysis of a decentralised management model in a healthcare delivery organisation in primary and community care. It shows that the activities consist with underlying assumptions, supported by evidence, and timely planned give managers decision space and ability to use their delegated authority, not disregarding accountability and fostering necessary organisational and individual capacities to avoid suboptimisation.