Embed Size (px)
DESCRIPTION
IPPC6
Citation preview
Daniela Grunschi,
Sanna Sintonen, Jukka Hallikas, Timo
Kivistö
Lappeenranta University of Technology,
FINLAND
The effect of collaboration,
procurement strategy, and
procurement competence on
public procurement innovation
and effectiveness
Content Background of the study
Motivation for the study
Objectives of the study
Benefits of the study
Methods and sample
Conceptual model and hypothesis
Results
Discussions and conclusions
Footer
Background of the study Public procurement of health and social services has emerged in
recent years in Finland.
In Finland the public sector is responsible for providing health and social services.
From public expenses, health and social services covered approximately 57% in 2011.
At the annual level, the health and social service procurement is worth of 2 billion Euros and it covers more than 90% of public service procurement.
The present study is part of a bigger research project which aims to increase the customer value through innovative public services contracts in the social and health care domain.
Footer
Motivation for the study
Public procurement (PP) has a great impact on the economy
rate is between 10%-30% from GNP
PP is also an important tool for achieving economic and social objectives
It faces, generally, a lot of challenges (depending on the economic, social, cultural and political environment)
Although new solutions to improve the public procurement process have been searched continuously, public procurement efficiency still remains a big challenge for public sector.
New innovative solutions are needed to improve the effectiveness( solutions that are based on collaborative relationships with suppliers should be found continuously).
There is little or no prior research which investigates factors that affect innovativeness and effectiveness of public procurement.
Footer
Objective of the study
The study approaches the most important factors that affect the innovativeness and effectiveness of public procurement.
Additionally, it investigates what is the effect of innovative procurement on procurement effectiveness.
More specifically, three research questions are addressed in this study:
Q1: What is the effect of collaborative relationships, procurement competence and
procurement strategy on public procurement innovation?
Q2: What is the effect of collaborative relationships, procurement competence and
procurement strategy on procurement effectiveness?
Q3: What is the impact of public procurement innovation on procurement effectiveness?
Footer
Benefits of the study
The results of the study have implications on the
management of public service procurement.
The study shows what are the most important factors
which must be addressed when the aim is to enhance
the effectiveness of pp and to promote the
innovations.
Footer
Method and sample
Survey
Sample size: 216 public organizations
58 responses (after three rounds of remind)
response rate 26,7%
analysis method: PLS (partial least squares structural ): is appropriate method for small samples.
seven-point Likert scale (1=strongly disagree…7= strongly agree)
Proc.managers were asked about their perceptions relating public procurement process.
Footer
Conceptual model
and hypothesis
H1: Good collaborative relationships with suppliers and customers have a positive effect on public procurement innovations.
H2: Good collaborative relationships with suppliers and customers have a positive effect on public procurement effectiveness.
H3: Strategic development of public procurement has a positive effect on public procurement innovation.
H4: Strategic development of public procurement has a positive effect on public procurement effectiveness.
H5: Procurement competence of public procurers influences positively the innovation in public procurement.
H6: Procurement competence of public procurers influences positively the public procurement effectiveness.
H7: Innovations in public procurement have a positive effect on public procurement effectiveness.
Footer
Collaborative relationships
Procurement effectiveness
Procurement innovation
Strategic procurement
Procurement competence
H1
H2
H3
H6
H5
H4
H7
Results of the PLS path modeling
Independent
Dependent
Path
coefficie
nt
p
Hypothesis
Collab.relationships→ Proc.innovation 0,410 ** H1: accepted
Collab.relationships→ Proc.effectiveness 0,007 ns H2: rejected
Strategic proc. → Proc.innovation -0,172 ns H3: rejected
Strategic proc. → Proc.effectiveness 0,528 *** H4: accepted
Proc.competence→ Proc.innovation 0,447 ** H5: accepted
Proc.competence→ Proc.effectiveness -0,175 ns H6: rejected
Proc.innovation→
Proc.effectiveness
0,298 *
H7: accepted
Footer
** p < .001, *p < .01, ns = not significant
Results of the study
The study was in line with the previous literature only on some degree.
Strategic proc. -> Effectiveness
Proc.competence -> Innovation
Collaboration -> Innovation
Innovation -> Effectiveness
Collaboration -/> Effectiveness
Strategic proc. -/> Innovation
Proc.competence -/>Effectiveness
Footer
Discusions
This study was based on a national survey ->the results could vary in different contexts.
Strategic procurement showed the strongest positive influence on procurement effectiveness Much more attention should be given to procurement strategy
This imply long term objectives
Currently procuremet specifications focus mainly on criteria based on lowest cost; in the future procurement should focus on long term objectives, especialy on the impact of pp.
Study suggests that procurement competence is strongly related to procurement strategy competence.
procurement competence, as a stand alone factor, has not much influence on proc.effectiveness, but just in connection with proc.strategic planning.
Continous education and training of proc.managers is required
Similarly, study suggests that collab.relationships , as a stand alone factor, has no significant influence on procurement effectiveness, but just in connection with strategic procurement.
Footer
Theorethical implications
Study strengths the definition of effectiveness, in the context of public procurement. Effectiveness definition sufestes that only strategic objectives are important for effectiveness.
Regarding the definintion of innovation: multidisciplinariy def.of innovation sugests that factors influencing innovation are: collaboration, competenece and strategy. This study didn’t found any statistical signification on procurement strategy. It can be concluded, that in the case of publ.proc. Only collaboration and competence have influence on innovation. However, replication of the study is required in order to validate the findings of this study.
Footer
Managerial implications
Public procurement managers can understand which issues must be emphasized when the aim is to get more innovations and make proceurement process more effective.
Strategic plannig of procurement playes the most important role on procurement effectiveness; this may have implications in organizations of the hole procurement process.
Collaboration and competence have crucial roles in proc.innovations. Based on these findings public managers can understand gthe emerging need to move to a more collaborative procurement. The time of competitive procurement has rich its limits. Collaboration has to take the place of competition.
Continuous education and training of proc.managers is required.
Footer
Limitations and future research
Small amount of available data
However the validation of measurement was rather convincing; central concepts
were measured with indicators used in previous research.
Further research with higher statistical power is recommended.
Area of researh could be more widely, not only the national level.
In Finland innovation and collaboration are usualy parts of strategic
plannig in most organizations
Future research is nedeed in other countries where innovation doesn’t play an
important role in strategic planning
This study indicates that innovations have a positive effect on
proc.effectiveness, but the effect is not very strong.
More study is required to investigate what kinds of innovations have a stronger
effect on proc.effectiveness.
Footer
