The key aspects of procurement in project management: investigating the effects of selection criteria, supplier integration and dynamics of acquisitions

Abstract

Systematic Review This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 1. Introduction In turbulent and complex environments, companies are making even more efforts for greater supply chain collaboration (Zhang & Cao, 2018). Well-managed partnerships between buyers and suppliers are useful for achieving collaboration fluency and improving procurement effectiveness (Grudinschi et al., 2014). Companies have a vital role to play in the overall performance of a project. Select the most suitable supplier (San Cristóbal, 2012), and evaluate are relevant procurement processes for a project's success (Araújo et al., 2017), which contributes to the effective management of the supply chain (Rao et al., 2017). However, the selection of a supplier requires considerable effort in any organization (Zolghadri et al., 2011). Zolghadri et al. (2011) state that supplier selection has been studied as a procurement department issue; however, in order to take advantage of collaboration in the supply chain, the suppliers' integration is both necessary and complex. Collaborative advantages are achieved by sharing information, synchronizing decisions, sharing complementary resources, and aligning incentives with suppliers' costs and risks (Cao & Zhang, 2010).

Constraints to incorporate competition in public-private partnerships in Malaysia

“…These constitute hurdles for interested parties, resulting in a small number of bidders (Hu and Han, 2018). Competition works when there is participation, but a small number of bidders undermines competition and encourages anti-competitive behaviour such as collusion (Buzzetto et al, 2020).…”

“…Nevertheless, they are still subjected to inflation indexing and variable interest rates charged by the financial institution. Therefore, failure to start the project within a certain target date might lead to changes in the key terms and even renegotiation (Buzzetto et al, 2020).…”

Constraints to incorporate competition in Public-Private Partnerships (PPP) in Malaysia

“…Competition is a crucial element in reducing the cost of infrastructure to a procuring authority (Broms et al, 2019). Advocating competition within procurement does not only benefit the public authority and the taxpayers, but it also creates a fair business opportunity for the private sector (Buzzetto et al, 2020). Through the competitive procurement process, each qualified bidder is entitled to a fair and equal opportunity to participate and win a public contract (Hu and Han, 2018).…”

“…According to Estrin and Pelletier (2018), Malaysian privatisation took a minimum of one to two years for a general procurement process to be completed. The problem with a lengthy process is that it discourages bidders from participating in competitive exercise (Buzzetto et al, 2020). Long procurement processes are also expensive, explained in the literature by lengthy negotiations, political barriers, unclear or absent project objectives (Yescombe and Farquharson, 2018;Babatunde et al, 2014).…”

“…Competition within the procurement process is recognised as a significant element for PPP. Competition in the procurement process leads to desirable results for the procuring authority, by achieving value for money, encouraging innovation and promoting efficiency (Broms et al, 2019;Buzzetto et al, 2020). According to Sulser (2018), most governments insist on the competition being upheld in PPP.…”