Organizational Forms and Incentives in Public Procurement: Natural Experiment at a Large Public Sector Organization in Russia

This article analyses how the intensification of centralized monitoring within public organization may impact incentives for efficiency in those divisions of the organization that have different levels of financial autonomy. The efficiency of divisions’ activities was estimated through their procurement effectiveness. All the divisions were classified as non-commercial units (NCU) funded by the government or as income earning units (IEU) operating in the market and having broader financial autonomy. The results show that under standard monitoring, the IEU had more efficient procurements compared to the NCU. After intensification of centralized monitoring, the differences in performance became insignificant. These findings show that stricter monitoring is efficient for organizations with soft budget constraints, while for organizations with hard budget constraints it is preferable to use more flexible regulations.     

Innovation in Public Management: Is Public E-Procurement a Wave of the Future? A Theoretical and Exploratory Analysis

Project management has become an answer to many traditional organizational structuration and performance shortcomings, while gaining currency in business and public sector organizations. Public procurement systems have evolved into public electronic procurement systems with variations and distinctions in the age of globalization and digitalized complexities. This article examines the development of public e-procurement as an innovation in public management in the contexts of project management, public procurement management, and e-governance. It also links practice to theory—through a fourfold theoretical perspective—with contributions to the knowledge in public procurement, governance, and public administration.     

Russian Central Government Budgeting and Public Sector Reform Discourses: Paradigms,Hybrids, and a “Third Way”

ABSTRACT

This study explores how public sector reform discourses are reflected in Russian central government budgeting. Through the lenses of institutional logics, Russian central government budgeting is considered to be a social institution that is influenced by rivaling reform paradigms: Public Administration, New Public Management (NPM), the Neo-Weberian State, and New Public Governance. Although NPM has dominated the agenda during the last decade, all four have been presented in “talks” and “decisions” regarding government budgeting. The empirical evidence illustrates that the implementation of management accounting techniques in the Russian public sector has coincided with and contradicted the construction of the Russian version of bureaucratic governance, which is referred to as the vertical of power. Having been accompanied by participatory mechanisms and a re-evaluation of the Soviet legacy, the reforms have created prerequisites for various outcomes at the level of budgeting practices: conflicts, as in the UK, and hybridization, as in Finland.     

Strengthening local political leadership through institutional design: how and why

ABSTRACT

Over recent decades, the institutions of political leadership have been criticised for being caught up in outdated designs that are not adapting to societal changes. In many western countries, this diagnosis has spurred design reforms aimed at strengthening political leadership at the local level. Based on a study of reforms in Norwegian and Danish municipalities, this article first develops a typology of reforms aimed at strengthening local political leadership. Leadership reforms are categorised into four types aimed at strengthening Executive, Collective, Collaborative, or Distributive political leadership. The typology is used to map the prevalence of the different types of reforms in the two countries. The results show that design reforms as such are more widespread in Danish than in Norwegian municipalities. In particular, reforms aimed at strengthening Distributive political leadership are used more extensively in Denmark than in Norway. The article discusses the contextual differences that may explain this variation.     

The relationship between competition and efficiency of waste-collection services in the Czech Republic

This paper examines the role of the competition on the waste-collection market. Based on the case study of the Czech Republic, we evaluate the influence of competition intensity on supply side of the market on efficiency of waste-collection services. The rate of competition was approximated by the number of submitted bids to public tenders and efficiency was measured by per capita expenditures for municipal waste-collection services. We developed two regression models – the first model verified a competitive effect on the public procurement market for the provision of waste-collection services; the second model identified factors that affected municipal expenditures for waste-collection services per capita. We concluded that the competition in the waste-collection market increases by organising open tenders for suppliers at regular intervals, by adapting the duration of contracts to economic life of fixed assets, by sustaining pressure on service providers through a change in suppliers or the distribution of contracts among jurisdictions.     

Public Sector Reforms and Service Quality Issues From the Perspective of the Small Island Developing States in the Pacific: A Case of Fiji

The purpose of this article is to compare service quality of the Fiji Islands Maritime Safety Administration (FIMSA) and the Maritime Safety Authority of Fiji (MSAF). Using a structured questionnaire, data were collected from 200 Fiji maritime industry stakeholders. Research findings identified FIMSA and MSAF service delivery misalignment with customer expectations; customer’ expectations exceeded perceived customer service experiences of FIMSA and MSAF; and, perceived customer service experiences of MSAF were noticeably better than those of FIMSA.     

Political Influence on Public–Private Partnerships in the Public Health Sector in New Zealand

The purpose of this article is highlight the influences on the performance of public-private partnership organizations established to provide procurement services for public-sector organizations. The findings provide evidence of some values-based fracturing in public-private partnerships in the New Zealand public sector. However, it is the impact of political influence that illustrates significant potential to undermine effectiveness and efficiency. This case suggests there are innovative approaches which can be adopted—other than traditional models of public expenditure—yet still providing a sustainable public health service. Finally the case argues for the importance of appropriate political understanding of the changing scenarios.     

How Resistance to Change Affects the Implementation of Accrual Accounting in Italian Public Universities: A Comparative Case Study

Following a highly disordered series of reforms, Italian universities will adopt accrual accounting by the end of 2016. This article studies the case of two universities where the new accounting system was introduced early (2013). The aim is to identify the main drivers of resistance to change and determine the types of organizational behavior that can counter this resistance. The results show a positive correlation between overcoming resistance to change and implementing specific organizational practices that may soften its effect. Surprisingly, the article found that resistance was stronger in the university where the situation was less complex.     

Public Enterprise Reforms and Financial Performance of Government Commercial Companies of Fiji

Public enterprise reform is no new phenomenon. Since the late 1970s, state intervention in the market has been increasingly challenged, acquiring a more ideological form with the rise of ultra-conservative governments in the UK and USA. Like other countries across the world, Fiji has also attempted to reform its public enterprises. This article compares the performance of corporatized public enterprises that sit at different levels of financial performance. Such enterprises have experienced reforms but with mixed financial outcomes. Overall, the major finding of this research is that there is no single factor that can lead to better or poor financial performance.     

A Comparative Analysis of SME Friendly Public Procurement: Results from Canada,Hungary and Italy

This paper studies SMEs’ participation in public procurement in light of perceived barriers and expected benefits of accessing the public marketplace. It presents a comparative analysis of SMEs’ participation in three countries that share similar approaches to SME-friendly public procurement. A common survey protocol was developed to be administered to SMEs in the three countries. Data collected were then analysed using regression methods. Findings suggest that some issues that are typically considered critical barriers, namely administrative requirements and award based on lowest price do not hinder participation. However, findings also suggest that firms’ characteristics associated with size are still relevant hindrances, and that SMEs’ involvement are affected by a shortage of tangible (human and financial) and intangible resources (experience). These findings provide guidance to fine-tune public procurement policies directed to SMEs.     

Рublic Procurement in Russia: What Hinders Innovation?

ABSTRACT

Using public procurement to foster innovation is a widespread practice worldwide. However, in Russia public procurement has had no significant impact on developing innovation. Empirical research with expert interviews and qualitative and quantitative data analysis has revealed the reasons for poor performance to promote innovation, including tough anti-trust and anti-corruption rules, limited use of tenders as well as “life-cycle cost” criteria, and poor management by the procuring agencies. The analysis revealed the contradiction between the rules designed for fighting corruption and monopolies and the need to stimulate innovation through procurement.