Exploration of market competition in governmental procurement on the basis of supplier segments

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Title: Exploration of market competition in governmental procurement on the basis of supplier segments
Authors: Teng, Weichen wcdeng@sce.pccu.edu.tw, Liao, Tien-Tien1
Source: Systems Engineering Procedia. Jun2011, Vol. 2, p406-411. 6p.
Subjects: Economic competition, Government purchasing, Suppliers, Contracting out, Public sector, Private sector, Market segmentation
Abstract: Abstract: Since the 1980s, policies related to outsourcing have steadily emerged in both the private sector and public sector. Indeed, the topics of procurement and outsourcing attract a lot of attention from practitioners and researchers alike. In the private sector, there are many studies discussing how to develop an efficient supplier-buyer relationship in order to optimize an outsourcing strategy; however, few studies discuss similar topics for the public sector. In this paper, we discuss the supplier-buyer relationship in public procurement and outsourcing based on four different role expectation segments of private suppliers: operator, agent, professional, and partner. While the role expectation for an operator is emphasized in the execution of a public buyer''s request, a role expectation for a partner is more collaborative and involves risk sharing. While the role expectation for an agent is based upon business outsourcing, a role expectation for a professional is based upon a specific task. In addition, the paper also investigates market competition in Taiwan''s public procurement and outsourcing based on supplier segmentation. The results show that in the four segments of private suppliers, the market competition for the operator segment is the most competitive because it has the most tenderers in the tendering process; on the other hand, in the cases of finding an agent or a professional, the contract price is positively related to the number of tenderers.These results can help managers in the private sector and officers in the public sector to understand the market competition of governmental procurement and outsourcing, and also help them optimize the outcome by developing an appropriate public-private relationship. [Copyright &y& Elsevier]
Copyright of Systems Engineering Procedia is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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DbLabel: Engineering Source
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  Data: Exploration of market competition in governmental procurement on the basis of supplier segments
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  Data: <searchLink fieldCode="AR" term="%22Teng%2C+Weichen%22">Teng, Weichen</searchLink><i> wcdeng@sce.pccu.edu.tw</i><br /><searchLink fieldCode="AR" term="%22Liao%2C+Tien-Tien%22">Liao, Tien-Tien</searchLink><relatesTo>1</relatesTo>
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  Data: <searchLink fieldCode="JN" term="%22Systems+Engineering+Procedia%22">Systems Engineering Procedia</searchLink>. Jun2011, Vol. 2, p406-411. 6p.
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  Data: <searchLink fieldCode="DE" term="%22Economic+competition%22">Economic competition</searchLink><br /><searchLink fieldCode="DE" term="%22Government+purchasing%22">Government purchasing</searchLink><br /><searchLink fieldCode="DE" term="%22Suppliers%22">Suppliers</searchLink><br /><searchLink fieldCode="DE" term="%22Contracting+out%22">Contracting out</searchLink><br /><searchLink fieldCode="DE" term="%22Public+sector%22">Public sector</searchLink><br /><searchLink fieldCode="DE" term="%22Private+sector%22">Private sector</searchLink><br /><searchLink fieldCode="DE" term="%22Market+segmentation%22">Market segmentation</searchLink>
– Name: Abstract
  Label: Abstract
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  Data: Abstract: Since the 1980s, policies related to outsourcing have steadily emerged in both the private sector and public sector. Indeed, the topics of procurement and outsourcing attract a lot of attention from practitioners and researchers alike. In the private sector, there are many studies discussing how to develop an efficient supplier-buyer relationship in order to optimize an outsourcing strategy; however, few studies discuss similar topics for the public sector. In this paper, we discuss the supplier-buyer relationship in public procurement and outsourcing based on four different role expectation segments of private suppliers: operator, agent, professional, and partner. While the role expectation for an operator is emphasized in the execution of a public buyer''s request, a role expectation for a partner is more collaborative and involves risk sharing. While the role expectation for an agent is based upon business outsourcing, a role expectation for a professional is based upon a specific task. In addition, the paper also investigates market competition in Taiwan''s public procurement and outsourcing based on supplier segmentation. The results show that in the four segments of private suppliers, the market competition for the operator segment is the most competitive because it has the most tenderers in the tendering process; on the other hand, in the cases of finding an agent or a professional, the contract price is positively related to the number of tenderers.These results can help managers in the private sector and officers in the public sector to understand the market competition of governmental procurement and outsourcing, and also help them optimize the outcome by developing an appropriate public-private relationship. [Copyright &y& Elsevier]
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  Label:
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  Data: <i>Copyright of Systems Engineering Procedia is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Value: 10.1016/j.sepro.2011.10.054
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      – Code: eng
        Text: English
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      – SubjectFull: Economic competition
        Type: general
      – SubjectFull: Government purchasing
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      – SubjectFull: Suppliers
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      – SubjectFull: Contracting out
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      – SubjectFull: Public sector
        Type: general
      – SubjectFull: Private sector
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      – SubjectFull: Market segmentation
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      – TitleFull: Exploration of market competition in governmental procurement on the basis of supplier segments
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              Text: Jun2011
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