The research concerned semi-dyadic relations in SMEs and large companies that managed innovative suppliers in New Zealand construction supply chains. It explored effects of (independent) company variables on (mediating) procurement management variables, and also the effects of these variable types on (dependent) procurement performance variables when managing innovative suppliers.Exploratory interviews (N=5) revealed that innovation procurement seemed professional and logical within their contexts.Survey I (N=112) revealed that most case companies followed a product leadership strategy, and were equally entrepreneurial to innovative customers and innovative suppliers. They were innovative and gave innovative suppliers a dominant innovation role. They seemed to prefer radical innovations less than incremental innovations, but still somewhat more than New Zealand averages. Companies had slight preferences for new, small, or foreign suppliers for radical innovations. Innovations with supplier interactions were more beneficial to the company and the natural environment, than innovations without supplier interactions. Higher company innovation-benefits could equal higher environmental innovation-benefits. This profile differed from the profile of average companies in the construction supply chain.Survey I found weak correlations among output performance variables and process or proxy performance variables.Dependent (procurement and performance) variables were affected differently. Conversely, independent (company and procurement) variables had different effects.Different from extant literature, Survey I found limited statistically-significant effects of company variables on procurement management variables, and of these two variable types on performance. A minority (41%) of company variables affected procurement variables; only two company variables (13%) affected performance; a minority (40%) of procurement variables affected performance.Product leadership and NPD/innovation experience affected performance. Moreover, trust, lifestyle strategies and survival strategies affected procurement variables. Conversely, 27% of performance variables (satisfaction on marketing & sales; benefits for the natural environment) and 30% of procurement variables (entrepreneurial orientation with innovative suppliers, relation intensity with manufacturers, and small vs large suppliers for radical innovations) responded stronger on some company variables. Company size (<99 versus >250 staff) had little effects.Innovating, opportunity-seeking and trust towards innovative suppliers, and relation intensity with innovative service providers had highest effects on performance. Conversely, 46% of the performance variables (satisfaction with innovative suppliers, benefits for natural environment and company) responded stronger on innovating, opportunities-seeking and trust variables.Survey II (N=33) identified 12 procurement best-practices that respondents used for specific supplier or innovation types.Causality should be treated cautiously. Findings reflected the inconclusive results from extant literature. The research provided a nuanced and varied understanding on management of innovative suppliers, on the effects of entrepreneurial orientation to innovative suppliers, on the limited effects of company size, on the complex relations between various performance measures, and on entrepreneurship as a theoretical lens in innovation procurement. Companies had several options on how they managed their innovative suppliers. Additionally, the company characteristics and context of in this nascent research domain could be more important than commonly assumed from extant research.
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The Dutch government, in alignment with the Paris climate agreement, has expressed the ambition to reduce CO 2 emissions in the Netherlands by 49% in 2030 compared to 1990. As freight transport is recognized as a serious CO 2 emitter, this sector is confronted with a substantial part of the target. For cities, the reduction of the urban freight transport emissions is, next to the CO 2 reduction, also important to improve the air quality. Dutch municipalities take an active role in coordination, facilitation and acceleration of the emission reduction processes, not only via regulation but also by using their public procurement power. This paper describes the City of Rotterdam's experiences from the EU Horizon 2020 BuyZET project. This project was launched in November 2016 and includes the cities of Rotterdam, Oslo and Copenhagen. The project aims at understanding and optimising the impact of public procurement activities on transport patterns and emissions in cities as well as to find innovative and sustainable delivery solutions for goods and services-related transport in order to reduce emissions.
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The presentation covers recent and current procurement management team research activities at Hanze university, notably SME procurement, sustainable procurement, and innovation procurement.
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This report summarizes the work done by Thematic Working Group 4 (TWG4) on “Procurement and Tendering” for e-bus deployment. It further analyses the various Good Practices collected by project partners with a reference to the above aspects. This report takes the policy learning one step further and sheds light on regional similarities and differences in practices that have been found functional and worth spreading.
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from the article: Supply chain integration intensifies through digitalisation of business administration (BA) processes. However, it is unclear whether differences exist between the public and private sector in development or implementation of supply chain integration solutions. The large scope of the supply chain, being a large network of companies working together towards one end product, is limited for this study to e-procurement processes. The related software solutions are included. This study starts with a theoretical snapshot of e-procurement. This is followed by a process viewpoint of the e-procurement function. Next five different forms of e-procurement cooperation are presented seen from an actors network viewpoint. The utilisation of these forms create insight in the differences between the public and private sector in their e-procurement adoption behaviour. The process maturity scan results shows that the process maturity between the two sectors is comparable. However, this only explains the differences per sector concerning their ability to improve and control their processes in general. For reliability, this step is followed by three in-depth interviews combined with analyses of recent e-procurement behaviour studies involving the two sectors. The final step compares the maturity outcome with the in-depth data results. Both sectors show certain forms of coalition in the e-procurement. Where ‘competition’ is a construct that drives the private sector, the public sector has cost control as a driver towards collaboration and integration within e-procurement. This can only partially be explained by the past European financial crises. Differences are found in digital collaboration and the integration itself. The most important difference lies in the European tendering procedure to which the public sector (unlike the private) is restricted. In nature an e-procurement design and development project does not fit the prescribed procedures.
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Can city administrations benefit from the entrepreneurial spirit of startups, and create better urban solutions with their help? In this paper, we critically assess the interplay between startups and city administrations for city-driven innovative public procurement or “challenge-based procurement” policy, taking Amsterdam’s Startup in Residence (SiR) programme as a case study. We describe and analyse this programme from two perspectives: i) the economic development perspective, i.e. does it promote startups and does it bring them new business opportunities, and ii) a governance perspective, i.e. does it bridge the gap between startups and the city bureaucracy; does it lead to a more innovative culture within city government.
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This paper analyses Amsterdam’s Startup-in-Residence (SiR) programme as new type of policy to engage startups in the development of urban innovation through a challenge-based public procurement of innovation (PPI) process. The programme is being mimicked by other cities and government agencies, but so far there has not been a rigorous, theoretically-informed analysis of the approach. In this paper, we specify and focus on the role of city-based, public-affiliated intermediaries as initiators, moderators and influencers of conversations between startups and the local government. The main contribution of SiR as a PPI intermediation programme has been to launch new types of fruitful conversations on several levels, that lead to institutional innovations rather than direct solutions for urban problems or startup development. In this sense, SiR fulfils a role inquiring and ascribing urban challenges with values and notions of “worth” that preceded and shaped innovation directions. We also suggest that engaging startups is effective for only a limited bandwidth urban challenges; different types of intermediation are required to foster collaborative innovation in more complex settings.
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In Germany, public transport organizations are mainly owned by public authorities. Procurement in Hamburg involves the buses and infrastructure instead of transport services. The procurement process for buses and infrastructure is performed by the transport companies. Such processes must meet German and European public regulations. Therefore, public tender and procurement procedures for buying buses by German Public Transport Operators (PTOs) can be more complex and lengthier than procurement by private PTOs in other countries. As a result, the public transport companies are not primarily driven by profitability, but also by obligations towards the public and political aims. Obligations can comprise to provide affordable, environmentallyfriendly transport services for the citizens. In Hamburg, the public authority incorporates obligations (requirements) for the e-buses in their tendering documents. In Utrecht, as well as most of the rest of the Netherlands, public transport is carried out by private companies, under an operating contract (concession) with a public transport authority. In Utrecht, this authority is the province of Utrecht. The e-buses are the operators’ private property and they are obliged to account to the province of Utrecht for their implementation of public transport. When the province of Utrecht procures the operation of public transport services by means of a European tendering process, private transport companies can offer a bid for this tender. Both, the authority and operators, want to provide good public transport for their customers, but they both have different goals. The operators want to earn a reasonable profit margin on public transport, while the authority wants to fulfil certain public policy goals. The tendering process is where these two come together. It is a strong mechanism to get the best ‘value for money’ out of the market – for example, the most public transport, or the highest number of e-buses running in the area, within the available budget of the public transport authority.
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The Procurement Platform Groningen is a cooperation of 15 tendering authorities in the northern part of the Netherlands. The Platform requested Hanze to start a research project concerning the Social Added Value of the Platform’s spend. The first phase of this research has now been completed. This phase has resulted in more insight into the spend of the Platform. The subject of this working paper concerns one of the next steps in this research. How can tendering authorities stimulate innovation within SMEs through tenders below threshold values? Most of the Platform members’ spend is put to market through non-European tenders. This paper describes a theoretical research into Platform’s possibilities to encourage innovation in SMEs, by using tendering for contracts that are below the threshold value. The results of this research show that the Platform can use several tendering procedures.
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This survey is about recognizing patterns in the way Small and Medium Enterprises (SMEs) organize their procurement activities. The scope of the survey is limited to the key commodities of the SME.A key commodity is defined as the purchased product or service group which is essential for realizing the value proposition for the customers of the SME.Prior outcome of our research indicated the existence of four procurement oriented patterns in SMEs. 4 Procurement Oriented Patterns where part of the study: Pattern 1 Focal company: ICT turn-key designerValue proposition of the focal company: ICT Design and assembly of offices on a high quality level at a reasonable price. Operational excellence: standardization in commodities, low transaction costs internally and externallyPurchased key commodity: Standard ICT software and hardwarePattern 2 Focal company: Horse shoes manufacturerValue proposition of the focal company: Standard horse shoes assortment at reasonable prices in a competitive environmentPurchased key commodity: Standard quality iron, reliable deliveryPattern 3 Focal company: IT innovation driven companyValue proposition of the focal company: Developing innovative software made applicable for practical usage in devices at a reasonable pricePurchased key commodity: Delivering applicable solutions on the bases of regular soft- and hardware, to enable the companies’ innovative software function in practicePattern 4 Focal company: designer and manufacturer of trailersValue proposition of the focal company: Designing and manufacturing trailers tailor made for specific requirements of customersPurchased key commodity: Designing and manufacturing axles which align to the specific trailer wishes of the customer of the focal companyFINDINGS Pattern recognitionAbout 50 % of the respondents recognized the four presented patterns from own experience and/or read literature. Respondents also suggested pattern variants. It is concluded that this Delphi study strengthens the view that these patterns exist in SMEs. Further research may include further empirical testing of these patterns and their variants. Perceived strengths or weaknesses. Respondents mentioned a wide variety of strengths and weaknesses of the patterns. No clear conclusions can be drawn from this data. Adequacy of the pattern descriptions. One of the outcomes of this Delphi study is an improved conceptual framework for describing procurement activity patterns. This framework can be used for collecting SME data in future research, for example by modifying the existing survey questions which are used in the WIM research program to describe SME procurement activities. The improved model includes more variables and values than the initial model. Thus future research may lead to more detailed patterns descriptions. Missing patterns and pattern variantsApart from the suggested pattern variants, respondents do not miss patterns which are quite different from the four patterns suggested by the research team. Methodological remarksThe Delphi study method did not allow for fast feedback on panel member contributions and fast group think processes. For the future it is advised to consider other methods in similar cases, for example the World Cafe method.
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