Procurement in infrastructure : what does theory tell us ?

Infrastructure has particular challenges in public procurement, because it is highly complex and customized and often requires economic, political and social considerations from a long time horizon. To deliver public infrastructure services to citizens or taxpayers, there are a series of decisions that governments have to make. The paper provides a minimum package of important economic theories that could guide governments to wise decision-making at each stage. Theory suggests that in general it would be a good option to contract out infrastructure to the private sector under high-powered incentive mechanisms, such as fixed-price contracts. However, this holds under certain conditions. Theory also shows that ownership should be aligned with the ultimate responsibility for or objective of infrastructure provision. Public and private ownership have different advantages and can deal with different problems. It is also shown that it would be a better option to integrate more than one public task (for example, investment and operation) into the same ownership, whether public or private, if they exhibit positive externalities.Public Sector Economics&Finance,Debt Markets,Infrastructure Economics,Contract Law,Transport Economics Policy&Planning

Analysing B2B electronic procurement benefits – Information systems perspective

This paper presents electronic procurement benefits identified in four case companies. The benefits achieved in the case companies were classified according to taxonomies from the Information Systems discipline. Existing taxonomies were combined into a new taxonomy which allows evaluation of the complex e-procurement impact. Traditional financial-based methods failed to capture the nature of e-procurement benefits. In the new taxonomy, eprocurement benefits are classified using scorecard dimensions (strategic, tactical and operational), which allows the identification of areas of e-procurement impact, in addition the benefits characteristic is captured (tangible, intangible, financial and non-financial)

Leveraging Offshore IT Outsourcing by SMEs through Online Marketplaces

Following their larger counterparts, an increasing number of small firms outsource their IT tasks to lower cost offshore destinations. For small firms, however, offshore outsourcing is a difficult undertaking as it involves high transaction costs. Online marketplaces for IT services, which have recently become available to small firms, make offshore IT outsourcing more accessible and manageable, although differences in the marketplace design result in varying outcomes across the marketplaces. This has consequences for SME’s decision as to which online marketplace to use, because different markets may have different types of benefits and costs. This paper sets to analyze some of the similarities and differences between online marketplaces for IT services and their effects for small firms. First, we analyze if and how online marketplaces reduce small firms’ transaction costs in offshore IT outsourcing. Second, we examine the effects of market entry barriers on outcomes of online marketplaces and their implications for small firms. The results indicate that online marketplaces for IT services do reduce transaction costs for small firms in offshore outsourcing across ten specific market processes. More surprising, however, is the finding that the lower market entry barriers for suppliers result in lower prices for buyers without compromising other aspects of market performance.Offshore IT Outsourcing;Online Market;Process-Stakeholder Analysis;Reverse Auction

Extent of e-procurement use in SMEs: A descriptive study

Although e-procurement is a complex practice, a number of existing studies, however, simplified the representation of the state of e-procurement in an organization to a binary measure. Although this is helpful to understand adoption decisions, it does not completely capture the reach and richness of the use of information technology (IT) innovations. Hence, this study explores the extent of e-procurement use in New Zealand, focusing specifically on the range of e-procurement functionalities used in the manufacturing SMEs. The e-procurement functionalities are seen from the information and transaction perspectives. A cross-sectional survey is used as a methodology for data collection. The SPSS software is used to analyse the data gathered from the 151 senior managers. Our results demonstrate that all of the functionalities, especially those that rely on commonly available technologies, are in use. Nonetheless, complex e-procurement technologies, such as e-auctions, are not common

E-COMMERCE IN AGRICULTURE: DEVELOPMENT, STRATEGY, AND MARKET IMPLICATIONS

Marketing,

An American BSE Crisis: Has it affected the Value of Traceability and Country-of-Origin Certifications for US and Canadian Beef?

With a BSE incident in the United States (US) in December of 2003, questions arose about the effect of the incident on consumers in the US. The purpose of this paper is to determine if traceability systems for beef can help preserve consumer demand following the discovery of BSE. Auctions were conducted approximately 3 weeks before and after the December 2003 BSE incident in the U.S It was found that overall there was no effect on the size of the bribes needed by the BSE incidence. However, for some groups there were important changes. The results indicate that information about traceability and country of origin is valuable to consumers. They also suggest that greater uncertainty about certifications and assurances for beef existed among the participants after December 23rd than before December 23rd.BSE, Traceability, Country-of-origin, Beef market, Auctions, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

Are they all the same? Benefit realisation from e-marketplaces

This paper addresses the issue of benefit realisation from e-marketplaces and examines whether there are significant differences in benefit recognition according to the type of e-marketplace used. An empirical study of two marketplaces and one buying organisation is used to analyse how the realisation of benefits may vary according to different e-marketplace models. A comparison is made between an intermediary and a consortium marketplace before the benefits achieved by the buying organisation are discussed. The study found that although there were distinct differences between the e-marketplaces, many benefits are achievable from both. Benefit realisation was influenced more by the buyer’s procurement strategies than by the features offered

Online Auctions

The economic literature on online auctions is rapidly growing because of the enormous amount of freely available field data. Moreover, numerous innovations in auction-design features on platforms such as eBay have created excellent research opportunities. In this article, we survey the theoretical, empirical, and experimental research on bidder strategies (including the timing of bids and winner's-curse effects) and seller strategies (including reserve-price policies and the use of buy-now options) in online auctions, as well as some of the literature dealing with online-auction design (including stopping rules and multi-object pricing rules).

A Measure of the Factors Impacting the Effectiveness and Efficiency of eBay in the Supply Chain of Online Firms

This research investigates the auction properties that influence eBay\u27s effectiveness (ability to attract bidders) and efficiency (ability to maximize price and profit) as the distribution link of the supply chain. The research extends the literature pioneered by Lucking-Reiley (2000) on eBay auctions. We found that the effectiveness of using eBay is influenced by the item description in the auction heading, the initial price, the timing of the auction and the operating condition of the item, in our case an inexpensive, functional HP 12-C financial calculator. The efficiency of eBay, on the other hand, is influenced by the ability to attract bidders, the pricing factors set up by the seller, the product\u27s description, its operating condition, the timing of the auction, and the method of payment options available to the buyer