Contract Management, Inter Functional Coordination, Trust and Contract Performance of Works Contracts in Ugandan Public Procuring and Disposing Entities

Purpose – The paper aims to improve upon the highly unconcretised works contract performance research, by examining the relationships between contract management, inter-functional coordination, trust and works contract performance and whether these variables have an effect on the contract performance. Design/methodology/approach – This study is cross-sectional and correlational. It also takes the descriptive and analytical design.  Data were collected from a representative sample of 108 completed and fully documented works contracts in the central government procuring and disposing entities in Uganda, in the financial year 2013/2014. Out of these, responses from 64 were used for analysis, using the Statistical Package for Social Scientists (SPSS). Findings – The results suggest that delivery management is relatively more important than relation management and contract management and that in a rules based system, the importance of inter-functional coordination to contract performance is minimal, further expounding on the critical difference between private and public procurement systems. Originality/value – This study, unlike other studies in developing countries, considers individual issues of contract performance rather than holistic performance of a procuring and disposing entity. Works contracts considered in this study, have unique inherent challenges that deserve being isolated and studied. The study also makes an original contribution that whereas inter-functional coordination has been in general terms recognized by literature as important determinant for contract performance, in a rules based system, inter-functional coordination is not as important as in a best practices system in enhancing performance of a works contract. Insights from our findings provide a platform for subsequent academic research. Practical implications – From the results, practitioners appreciate the need to pay for certified completed works in reasonable time, and to effectively manage the relationship between the functions in a procuring and disposing entity and contractors. Insights for the study demonstrate the need for policy makers to adjust laws governing public procurement to allow reasonable interaction between the procuring and disposing entities contract management teams and contractors. Type of paper – Research paper Keywords – contract management, Inter-functional coordination, Trust, Contract performance

Contract management and performance characteristics: An empirical and managerial implication for Indonesia

This study intends to cover the relationship between contract management and performance characteristics from the context of Indonesia. To address this objective, contract management is observed as the main independent variable while performance through nine items is considered as dependent variable. A questionnaire is developed through some selected factors and distributed among various respondents, dealing directly or indirectly with the projects. A sample of 70 respondents is finalized with no missing values. Empirical findings suggest that for the firm performance different variables such as nature of the solution, cost & benefit analysis are significantly associated with the contract length. While project delivery and project quality are negatively associated with the contract length. Findings of the study are highly recommended for the contract managers and similar individuals, responsible for the smooth business performance. However, future studies can be conducted with the addition of more explanatory factors for contract management with better sample size. Manage-rial implication of the study defines that Government and construction companies should reconsider the stated factors for the improved results through resolution of the conflict with the customers, cost benefit analysis and timely delivery of the project with budgetary compliance

Contract management and performance characteristics: An empirical and managerial implication for Indonesia

This study intends to cover the relationship between contract management and performance characteristics from the context of Indonesia. To address this objective, contract management is observed as the main independent variable while performance through nine items is considered as dependent variable. A questionnaire is developed through some selected factors and distributed among various respondents, dealing directly or indirectly with the projects. A sample of 70 respondents is finalized with no missing values. Empirical findings suggest that for the firm performance different variables such as nature of the solution, cost & benefit analysis are significantly associated with the contract length. While project delivery and project quality are negatively associated with the contract length. Findings of the study are highly recommended for the contract managers and similar individuals, responsible for the smooth business performance. However, future studies can be conducted with the addition of more explanatory factors for contract management with better sample size. Manage-rial implication of the study defines that Government and construction companies should reconsider the stated factors for the improved results through resolution of the conflict with the customers, cost benefit analysis and timely delivery of the project with budgetary compliance

Coping with the relational paradoxes of outcome-based services

By entering outcome-based service (OBS) relationships, industrial service providers and their customers realign their business interests to achieve mutually beneficial outcomes. The move towards OBS represents a shift from transactional to relational interaction between the providers and their customers. Thus, the changed relationship is bound to envelop paradoxes – circumstances that involve competing demands where making tradeoffs can often be impossible. The purpose of this study is to explore such relational paradoxes in OBS relationships and how providers cope with them. An explorative case study approach reveals that the relational paradoxes are related to control, knowledge, dependency, and complexity. Subsequently, we developed a COPE framework consisting of four provider coping strategies: commitment, openness, partnerships, and extrication. Building on the logic of knotted paradoxes, we introduce a quatrefoil knot in which the found relational paradoxes are enmeshed. Finally, we show how different paradoxical tensions become salient at different phases of the OBS relationship while being reinforced by the latent paradoxes at the time. For managers, we disclose relational tensions and their temporal interplay and suggest strategies to cope with them.© 2022 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

Demystifying the use of contractor employees in South Africa: a case study of Eskom KZN OU.

Masters Degree. University of KwaZulu-Natal, Westville.Many organizations employ external contractors in their daily business operations. The interactions between these host organisations and external contractors can either contribute to the success or failure of these organisations. Eskom’s Kwazulu-Natal Operating Unit makes use of several external contractors and this is the case in the Electrification Department. For the past five years, the department has not been able to achieve their sales quotas. Essentially, the more customers that get electrified the better returns of revenue for the organization. This study investigates the effectiveness of communication between management and contractors, how contractors are outsourced and the use of internal resources in relation to external resources. A survey was conducted among 200 employees chosen for the research in all areas within KZN with the goal of covering all areas within the province. The quantitative method was chosen for the survey. The survey instruments used was an emailed questionnaire with the utilization of a software called QuestionPro for feedback from the respondents. The data collected was analysed using Statistical Package for Social Science (SPSS). From the findings, the respondents tend to agree that management must maintain good communication with external contractors about organizational targets. Respondents also agreed that assessments must be done internally with more focus on skills and experienced contractors. There needs to be a good working relationship between internal and external resources, however there are pros and cons when these two are compared. Findings and recommendations are discussed and areas for further study identified

Essai de modélisation du processus d’enracinement des Prestataires de Services Logistiques dans les relations nouées avec les chargeurs industriels et distributeurs : Modèle conceptuel et propositions de recherche

This research proposes a transposition of managerial entrenchment theory to an inter-organizational level in logistics management. Following the example of corporate executives who manage to remain in their positions despite the discipline imposed by governance mechanisms, this research attempts to understand the process of entrenchment of logistics service providers (LSPs) in relationships with shippers. This paper attempts to disentangle the concepts of dependency and power in contract logistics while analyzing the process of LSPs entrenchment in the relationship with shippers: When and how the LSPs entrenchment occurs in a logistic outsourcing (contract-s) relationship? In order to model the process of entrenchment of LSPs in relationships with shippers (industrial and/or distributors), The research mobilizes a theoretical framework of managerial entrenchment and power-dependence at the inter-organizational level. This process of entrenchment is initiated at the time of the contract and develops over time through the mobilization of resources and capabilities and the improvement of performance to rebalance the power relationships and strengthen interdependence with a view to positive entrenchment. The evolution of the relationship into a dependent stage leads to a deeply rooted entrenchment.   JEL Classification: M38 Type of article: theoretical articleCette recherche propose une transposition de la théorie de l’enracinement des dirigeants, issue de la finance organisationnelle, à un niveau inter-organisationnel dans le management logistique. À l’instar des dirigeants d’entreprises qui réussissent à se pérenniser à leur poste pour maximiser leur utilité malgré les contraintes et la discipline imposées par les mécanismes de gouvernance, cette recherche tente de comprendre le processus d’enracinement des prestataires de services logistique (PSL) dans les relations nouées avec les chargeurs. Cet article tente de démêler du concept de pouvoir entre « jeux d’acteurs » et « contrôle de ressources » dans la logistique contractuelle tout en analysant le processus d’enracinement des PSL dans la relation nouée avec les chargeurs pour répondre à la question : « quand » et « comment » l’enracinement des PSL se produit dans une relation (contrat-s) d’externalisation logistique ? La recherche mobilise un cadre théorique de la finance organisationnelle (enracinement managérial) et les développements théoriques sur le pouvoir-dépendance au niveau inter-organisationnel pour modéliser le processus d’enracinement des PSL dans les relations nouées avec les clients-chargeurs (industriels et/ou distributeurs). Ce processus d’enracinement est amorcé dès le contrat et se développe dans le temps par la mobilisation des ressources et compétences et l’amélioration de la performance pour rééquilibrer les rapports de pouvoir et renforcer l’interdépendance en vue d’un enracinement positif. L’évolution de la relation vers un stade de dépendance du chargeur et sa difficulté de prise en compte des alternatives mène à un enracinement amplifié et profond.     Classification JEL : M38 Type de l’article : article théoriqu

Effective Strategies for Managing the Outsourcing of Information Technology

More than half of information technology (IT) outsourced projects fail, primarily due to a lack of effective management practices surrounding the outsourcing end-to-end process. Ineffective management of the IT outsourcing (ITO) process affects organizations in the form of higher than expected project costs, including greater vendor switching or reintegration costs, poor quality, and loss of profits. These effects indicate that some business leaders lack the strategies to effectively manage the ITO process. The purpose of this single-case study was to apply the transaction cost economics (TCE) theory to explore strategies 5 business professionals use to manage an ITO project in a financial services organization located in the Midwestern region of the United States. Participant selection was purposeful and was based on the integral role the participants play on the ITO project. Data collection occurred via face-to-face semistructured interviews with the participants and the review of company documents. Data were analyzed using inductive coding of phrases, word frequency searches, and theme interpretation. Three themes emerged: vendor governance and oversight, collaborative strategic partnership, and risk management strategies enabled effective management of ITO. Identifying and executing appropriate outsourcing strategies may contribute to social change by improving outsourcing infrastructure, which might support job creation; increasing standards of living, especially within emerging markets; and heightening awareness of different cultures, norms, and languages among people living in different regions around the world to establish commonalities and gain alignment with business practices

Optimising cost and availability estimates at the bidding stage of performance-based contracting

Performance-Based Contracting (PBC), e.g. Contracting for Availability (CfA), has been extensively applied in many industry sectors such as defence, aerospace and railway. Under PBC, complex support activities (e.g. maintenance, training, etc.) are outsourced, under mid to long term contracting arrangements, to maintain certain level of systems’ performance (e.g. availability). However, building robust cost and availability estimates is particularly challenging at the bidding stage because therei is lack of methods and limited availability of data for analysis. Driven by this contextual challenge this PhD aims to develop a process to simulate and optimise cost and availability estimates at the bidding stage of CfA. The research methodology follows a human-centred design approach, focusing on the end-user stakeholders. An interaction with seven manufacturing organisations involved in the bidding process of CfA enabled to identify the state-of-practice and the industry needs, and a review of literature in PBC and cost estimation enabled to identify the research gaps. A simulation model for cost and availability trade-off and estimation (CATECAB) has been developed, to support cost engineers during the bidding preparation. Also, a multi-objective genetic algorithm (EMOGA) has been developed to combine with the CATECAB and build a cost and availability estimation and optimisation model (CAEOCAB). Techniques such as Monte-Carlo simulation, bootstrapping resampling, multi-regression analysis and genetic algorithms have been applied. This model is able to estimate the optimal investment in the attributes that impact the availability of the systems, according to total contract cost, availability and duration targets. The validation of the models is performed by means of four case studies with twenty-one CfA scenarios, in the maritime and air domains. The outcomes indicate a representable accuracy for the estimates produced by the models, which has been considered suitable for the early stages of the bidding process

After-Sales Service Contracting for Excellence in Life-Cycle Cost Management: Numerical Experiments and Systematic Review of Analytical Models

This research adds to the literature and provides insight to practice via three essays that increase understanding about the applications and consequences of the two new approaches to the after-sales service governance: warranty contract and performance-based contracts. First, we attempted to enhance our knowledge of the modeling of the after-sales service process. In the first essay, the research papers with analytical models of after-sales services to present current trends, issues, and future research directions in the literature are classified. In the second essay, the effect of the warranty contract on the supplier's product quality improvement efforts in the context of capital goods is examined. Three sets of optimization models reveal that the existence of a warranty improves product quality. In the third essay, the performance-based contract is examined in the context of the warranty contract. The numerical experimentations conducted demonstrate that the performance-based contract is superior to the warranty contract in terms of the supplier's product quality efforts and the customer's total cost of after-sales services. The alignment of incentives based on the product performance tackles the issues presented in the traditional after-sales service contracting. Collectively, the three studies presented in this research expand our understanding of after-sales service contracts. Thus, the research presents managerial implications and adds to the existing body of knowledge in after-sales service research