Timothy G. Hawkins

Explaining the effectiveness of performance‐based logistics: a quantitative examination

Purpose – Performance‐based logistics (PBL) strategies are providing governments and for‐profit organizations with a contractual mechanism that reduces the life cycle costs of their systems. PBL accomplishes this by establishing contracts that focus on the delivery of performance not parts. PBL establishes a metric based governance structure where suppliers make more profit when they invest in logistics process improvements, or system redesign, that reduces total cost of ownership. While work has been done to outline an overall PBL theoretical framework, the underlying theory explaining the enablers that lead to organizational and team‐level, team‐goal alignment associated with the PBL governance structure requires testing. The purpose of this paper is to quantitatively test previously posited relationships between enablers of PBL and PBL effectiveness. An additional objective is to explore any differences in PBL effectiveness between different business sectors.Design/methodology/approach – A multiple reg...

Enhancing reverse auction use theory: an exploratory study

Purpose – The purpose of this paper is to explore how a sourcing professional arrives at a decision to use an electronic reverse auction (eRA) to source a particular requirement by examining eRA appropriateness.Design/methodology/approach – Past eRA research findings are synthesized into a summary table. From a comprehensive review of the literature, theories of technology adoption, social influence, referent‐dependence theory, and planned behaviour are discussed and synthesized into a model that explains the antecedents of eRA appropriateness. A case study methodology using structured interviews resulted in a refined model that sheds light on some of the controversial findings regarding electronic reverse auction appropriateness.Findings – Expected savings, buyer confidence, and prior eRA sourcing satisfaction are identified as new constructs that help explain the decision to source via eRAs. Additionally, perceived eRA appropriateness is proposed as a new construct that mediates the influence of externa...

“Natural” labeling and consumers’ sentimental pastoral notion

Purpose – This study aims to investigate the appeal of “natural” labeling and builds on past research which suggests that people may have a naive pastoral view of nature and natural entities. “Natural” labeling is pervasive in supermarkets across the USA. Design/methodology/approach – This paper employs a multi-method approach to examine consumer perceptions and beliefs about products labeled “natural”. Qualitative responses are solicited to examine the images and feelings that come to mind when consumers see “natural” labeling on a food product. Two experiments are conducted to examine consumers’ evaluations of “natural” labeling on both food and supplement products. Findings – The results of three studies suggest that “natural” labeling evokes positive feelings and sentimental imagery associated with a pastoral view of nature. These perceptions reinforce beliefs that food and supplement products labeled “natural” possess positive instrumental benefits such as health advantages, lack of contamination and...

Sustainable integrity: how reverse auctions can benefit suppliers in emerging markets

Purpose – The growth of international business persists, particularly in emerging economies. Business in these developing nations is heavily influenced by national culture. In the Middle East and North Africa (MENA) region, buyer-supplier relationships are often negatively influenced by “wasta” – a term associated with power, influence, connection and corruption. Technology-enhanced business processes diffuse as globalization increases. The purpose of this research was to explore whether and, if so, how electronic reverse auction (e-RA) use might be effective in a MENA national culture. Design/methodology/approach – The authors use a case study method based on data collected from 13 interviews with supply chain members extending beyond the dyad to explain: why Middle Eastern bidders participated in an e-RA; the nature of a unique phenomenon in Middle Eastern culture called wasta; and (3) how wasta, e-RA use, and procurement integrity interact in a sustainable way. Findings – This case study extends knowle...

Leveraging strategic sourcing and knowledge management to improve the acquisition of knowledge-based services

Knowledge-based services (KBS) comprise a major portion of services acquired by public organizations. However, their procurement is not well managed; consequently, inefficiencies abound. Therefore, this study explores whether and how KBS can be sourced more efficiently by examining best practices and precepts from knowledge management theory. A spend analysis of one agencyʼs spend is used to identify the types of KBS procured. Interviews from 12 cases are then used to identify best practices and cost drivers in sourcing KBS. Twenty one recommendations for improving efficiency in sourcing KBS are offered. The findings suggest that potential is available from demand reduction strategies, and that public policy governing the procurement of knowledge is needed. The research concludes with theoretical implications and suggestions for future research.

Individual manager experience influences on reverse auction use

Electronic reverse auctions (e-RAs) are complicated sourcing tools that require a degree of mastery in order to achieve desired outcomes. Because the loss of supplier trust lies at the root of the complaints directed toward e-RAs, an individual manager’s experience at building supplier’s trust – or by skilfully implementing or selecting e-RAs – could mitigate this particular downside. These issues prompted an exploration of individual buyer experience as the critical filter through which pass procurement decisions. Findings indicate that the amount of savings is related to the experience specific to e-RA use. General buyer experience predicted e-RA outcomes such as satisfaction and reducing the negative impacts on supplier trust. The presented evidence highlights the difference between knowledge and wisdom – expertise specific to e-RAs may make them more efficient for cost savings, but it takes years of general procurement experience to manage the effects on relationships within and without the organisation.

Federal bid protests: Is the tail wagging the dog?

The fear of receiving a bid protest is said to affect acquisition strategies, yet it has not been empirically explored. Based on the Public Value Framework and interviews with contracting personnel, this research tests a model of antecedents to and consequences of the fear of a protest. Survey data was obtained from a sample of 350 contracting personnel. The fear of protest is mitigated by having sufficient procurement lead time and by source selection experience, and increased by protest risk. Fear of protest increases compromised technical evaluations, added procurement lead time, and transaction costs, while it decreases contracting officer authority and is associated with source selection method inappropriateness. Compromised technical evaluations, in turn, decrease contractor performance while contracting officer authority increases contractor performance. Thus, findings suggest that, indeed, the tail is wagging the dog. The research concludes with several managerial implications, study limitations and future research directions.

DO THE BABY AND THE BATHWATER DESERVE THE SAME FATE? AN EXPLORATORY STUDY OF COLLABORATIVE PRICING IN THE U.S. DEPARTMENT OF DEFENSE

Alpha contracting is a collaborative effort between a buyer and supplier during contract formation to maximize efficiency and effectiveness. Collaborative efforts between the United States Department of Defense and its suppliers have recently been scrutinized. Although several benefits of Alpha contracting are identified within the literature, the phenomenon is not ubiquitous nor is it well understood. Using the case study methodology, this research explores Alpha Contracting to define success and to identify its contributing factors. Additionally, this research identifies antecedents for and consequences of use, variations of the processes employed, and some misuse. The study culminates in the development of a conceptual model of collaborative pricing, and provides five recommendations for enhanced use.

Examining the effects of source selection method on procurement outcomes

Purpose The purpose of this research is to explore the effects of supplier selection method on key procurement outcomes such as procurement lead time (PLT), supplier performance and buyer team size. Design/methodology/approach Data were collected from a sample of 124 archival contract records from the US Department of Defense. A multiple regression model and multivariate analysis of covariance/analysis of covariance models were used to test the effects of source selection method on pertinent procurement outcomes. Findings The trade-off (TO) source selection method increases PLT, as does the number of evaluation factors and the number of proposals received. Substantially larger sourcing teams are also associated with the TO source selection method. Nonetheless, the TO method results in better supplier performance. Practical implications TO source selections yield superior supplier performance than low-bidder methods. However, they are costly in terms of time and personnel. Any assessment of supplier value should consider not only the price premium for higher performance but also the transaction costs associated with the TO method. Originality/value Very little research addresses a buying team’s evaluation of supplier-offered value ex ante and whether that value assessment materializes into actual value-added supplier performance. Low bidder tactics are pervasive, but price (i.e. sacrifice) is only one component of value. Benefits from superior supplier performance may yield greater overall value. If value is critical to the buyer, a TO source selection method – versus a low-bidder approach – is the appropriate tool because of higher supplier performance ex post.

Electronic Reverse Auctions: Spawning Procurement Innovation in the Context of Arab Culture

Government e-procurement initiatives have the potential to transform local institutions, but few studies have been published of strategies for implementing specific e-procurement tools, particularly involving procurement by a foreign government adapting to local culture in the Middle East/North Africa (MENA). This case describes procurement at a forward operating base (FOB) in Kuwait in support of operations in Iraq. The government procurers had to deal with a phenomenon unique to the MENA region: wasta. Wasta is a form of social capital that bestows power, influence, and connection to those who possess it, similar to guanxi in China. This study explores the value proposition and limitations of electronic reverse auctions (eRA) with the purpose of sharing best practices and lessons learned for government procurement in a MENA country. The public value framework provides valuable theoretical insights for the implementation of a new government e-procurement tool in a foreign country. In a culture dominated by wasta, the suppliers enjoyed the transparency and merit-based virtues of eRA’s that transferred successfully into the new cultural milieu: potential to increase transparency, competition, efficiency, and taxpayer savings. The practices provided herein are designed specifically to help buyers overcome structural barriers including training, organizational inertia, and a lack of eRA policy and guidance while implementing a new e-procurement tool in a foreign country.