Combinatorial auctions in public procurement: Experiences from sweden

Traditional auction mechanisms support price negotiations on a single item. The Internet allows for the exchange of much more complex offers in real-time. This is one of the reasons for much research on multidimensional auction mechanisms allowing negotiations on multiple items, multiple units, or multiple attributes of an item, as they can be regularly found in procurement. Combinatorial auctions, for example, enable suppliers to submit bids on bundles of items. A number of laboratory experiments has shown high allocative efficiency in markets with economies of scope. For suppliers it is easier to express cost savings due to bundling (e. g., decreased transportation or production costs). This can lead to significant savings in total cost of the procurement manager. Procurement negotiations exhibit a number of particularities: It is often necessary to consider qualitative attributes or volume discounts in bundle bids. These complex bid types have not been sufficiently analyzed. The winner determination problem requires the consideration of a number of additional business constraints, such as limits on the spend on a particular supplier or the number of suppliers. Iterative combinatorial auctions have a number of advantages in practical applications, but they also lead to new problems in the determination of ask prices. In this paper, we will discuss fundamental problems in the design of combinatorial auctions and the particularities of procurement applications.Reprint of an article from WIRTSCHAFTSINFORMATIK 47(2)2005:126–134.

Best practices, policy and innovations in the administration of healthcare in developing communities and countries. For administrators, academics, researchers and policy leaders. Includes peer reviewed research papers. Edited by Dr. Judith Shamian, President Emeritus, International Council of Nurses, Professor and Co-investigator with the Nursing Health Services Research Unit, Lawrence S. Bloomberg Faculty of Nursing, University of Toronto, Toronto, ON

Public sector purchasing of health services: A comparison with private sector purchasing

PurposeWhile the term “entrepreneurship” is not exclusively a private sector phenomenon, it is usually associated with private sector business activity and more specifically with small to medium enterprises. However, over the last two decades it has appeared in the public administration literature with increasing frequency. The recent research in public sector entrepreneurial activity makes an exploratory comparative analysis of the key components that are applicable from private sector entrepreneurship timely as the topic is emerging as an area of academic inquiry and research. The purpose of this paper is to provide a comparative analysis of private and public sector entrepreneurship using an analytical model from private and public sector entrepreneurship.Design/methodology/approachA clear understanding of the research issues involved requires an appreciation of the nexus between private sector entrepreneurship and the more limited research field of public sector entrepreneurship. The paper identifies and examines the historical and evolutionary research on entrepreneurship as a basis for analysis of public and private sector entrepreneurship.FindingsThe paper provides a comprehensive analysis that highlights key similarities, differences or a combination between public and private sector entrepreneurship and develops an existing model and framework for a systematic approach to the public sector entrepreneurial process.Originality/ valueBased on this exploration, new insights about public sector entrepreneurship are developed, practical implications for public sector entrepreneurs on how to approach public sector entrepreneurship more systematically and effectively are presented and opportunities for further research are identified.

BackgroundSouth Africa has large public and private sectors and there is a common perception that public sector hospitals are inefficient and ineffective while the privately owned and managed hospitals provide superior care and are more sustainable. The underlying assumption is that there is a potential gap in management capacity between the two sectors. This study aims to ascertain the skills and competency levels of hospital managers in South Africa and to determine whether there are any significant differences in competency levels between managers in the different sectors.MethodsA survey using a self administered questionnaire was conducted among hospital managers in South Africa. Respondents were asked to rate their proficiency with seven key functions that they perform. These included delivery of health care, planning, organizing, leading, controlling, legal and ethical, and self-management. Ratings were based on a five point Likert scale ranging from very low skill level to very high skill level.ResultsThe results show that managers in the private sector perceived themselves to be significantly more competent than their public sector colleagues in most of the management facets. Public sector managers were also more likely than their private sector colleagues to report that they required further development and training.ConclusionThe findings confirm our supposition that there is a lack of management capacity within the public sector in South Africa and that there is a significant gap between private and public sectors. It provides evidence that there is a great need for further development of managers, especially those in the public sector. The onus is therefore on administrators and those responsible for management education and training to identify managers in need of development and to make available training that is contextually relevant in terms of design and delivery.

Public procurement fulfils an important role in the economy and public expenditure of a country and can be regarded as a critical indicator of the effectiveness of a government, because it is a central aspect of public service delivery. Notwithstanding various reforms made to date to public sector procurement in South Africa and the application of Supply Chain Management as a strategic policy strategic instrument, the South African public procurement system still faces several challenges and has been strongly criticised. This paper aims to understand the current public procurement environment in South Africa, its dilemmas and challenges, and to propose that public procurement be refocused towards a strategically placed business process, implemented by well-trained and competent procurement officials. The purpose is to provide a theoretical foundation as well as practical guidance regarding the role of public procurement in the South African public sector. The methodology involved an intensive literature study and document analysis to evaluate various official policy documents and official publications to determine the status of South African public procurement. The study found that the majority of challenges faced by public procurement in South Africa can probably be attributed to the implementation of the system, rather than to the system itself. In the shorter and longer term, the public procurement system in South Africa will have no choice but to emerge as a stronger, more resilient, streamlined and efficient provider of goods and services for the greater good of all.

The operational efficiency in China's private and public sectors presents significant differences that managers are unaware of, leading to increased turnover intentions. The current research covers the impacts of intrinsic and extrinsic job satisfaction on turnover intentions within the Chinese public sector. This research investigates the correlation between job satisfaction and employee turnover intentions in the Chinese public and private sectors. Data were gathered via questionnaires distributed to employees from multiple public and private enterprises and institutions. The findings indicate clear differences between employees in the public and private sectors regarding the influence of job satisfaction on intentions to turnover. Specifically, Chinese public employees show less extrinsic job satisfaction and less desire to quit than employees employed in the private sector. Moreover, compared to employees in the private sector, those working in the public sector have a direct but insignificant negative relationship between extrinsic job satisfaction and turnover intentions. To improve employee motivation, it is recommended that public-sector managers prioritize enhancing extrinsic job factors and consider reallocating dissatisfied employees to more suitable roles. Furthermore, managers should evaluate whether their organization’s turnover rate is overly high, as it will deteriorate productivity and efficiency.

Antiretroviral therapy in countries with low health expenditure

Can Cyprus overcome its health-care challenges?

Both the fourth industrial revolution (Industry 4.0) and its embedded technology diffusion exponentially progress and grow in terms of technical change and socioeconomic impact. The aim of this study was the evaluation of research and development efficiency in the public and private sectors in EU countries. The Data Envelopment Analysis (DEA) methodology, within which the slack-based model was applied, was used to achieve this aim. The Malmquist index (MI) was used to calculate changes in research and development efficiency during 2010/2013 and 2014/2017. The results present a decrease in total Research and Development (R&D) productivity in public and private sectors for an average of EU countries (28). However, Spain, Slovenia, and Portugal (in the public sector), and Ireland and Romania (in the private sector) revealed an increase of a total R&D productivity during 2010/2013 and 2014/2017 that was primarily influenced by an increase of technical efficiency (catch-up effect). Similarly, the results confirm the differences in R&D efficiency in private and public sectors in the European countries. The study’s results also provide a valuable platform for creators of national strategic and innovative investment and educational plans, and creators of relevant policies and create a platform for national and international benchmarking indicators.

BackgroundMalaysia’s public healthcare sector provides a greater volume of medicines at lower overall cost compared to the private sector, indicating its importance in providing access to medicines for Malaysians. However, the Ministry of Health (MOH) has concerns about the continuous increase in the public sector medicines budget, and achieving efficiencies in medicines procurement is an important goal. The objectives of this study were to assess the overall trend in public sector pharmaceutical procurement efficiency from 2010 to 2014, and determine if the three different ways in which MOH procures medicines influence efficiency.MethodsWe matched medicines from the public sector procurement report by medicine formulation to medicines with a Management Sciences for Health (MSH) International Reference Price (IRP) for each year. Price ratios were calculated, and utilizing the information on quantity and expenditure for each product, summary measures of procurement efficiency were reported as quantity- and expenditure-weighted average price ratios (WAPRs) for each year. Utilizing MOH procurement data to obtain information on procurement type, a multiple regression analysis, controlling for factors that can influence prices, assessed whether procured efficiency (relative to IRPs) differed by MOH procurement type.ResultsMalaysia’s public sector purchased medicines at two to three times the IRP throughout the study period. However, procurement prices were relatively stable in terms of WAPRs each year (2.2 and 3.2 in 2010 to 1.9 and 2.9 in 2014 for quantity and expenditure WAPRs, respectively). Procurement efficiency did not vary between the three different methods of MOH procurement. Procurement efficiency of both imported originators and imported generics were significantly lower (P < 0.001 and P < 0.01) than local generic products, and medicine source and category influenced the procurement efficiency of each MOH procurement mechanism.ConclusionThe design of different medicines procurement mechanisms, along with the balance between ensuring competitive procurement prices and adhering to national industry and procurement policies, have not been able to achieve lower public sector medicines procurement prices (relative to IRP). Introducing pooled procurement options along with continuous monitoring of procurement efficiency and exploring ways to improve price competition among local and foreign suppliers is recommended.

Although overprovision of antibiotics in primary care is a key driver of antibiotic resistance, little is known about its determinants in low-income and middle-income countries. Patient demand and financial incentives...

You're the One that I Want! Public Employment and Women's Labor Market Outcomes

Is public service motivation (PSM) higher in the public sector than in the private sector? Or does the level of PSM depend on the task rather than on the sector in which the employee works? It is often difficult to investigate sector differences, as private and public employees typically perform different tasks. Here, we investigate the differences in the PSM levels for a single occupational group performing the same tasks in the private and public sectors: Danish physiotherapists. The article also aims to investigate whether public and private sector employment is related to different types of PSM. The most important findings are that there is no difference in the general level of PSM between employees performing the same tasks in public and private organizations, but whereas private sector physiotherapists seem to be more narrowly oriented toward the user, public sector physiotherapists have a broader orientation toward the public interest.

The COVID-19 pandemic has placed remarkable stress on all aspects of society, from health care and the economy to the psychological well-being of communities. While the crisis is still playing out in the United States and around the world, it is nevertheless appropriate to begin to assess its impact. This article asks: What documentable public failures provide a deeper understanding of the U.S. government COVID-19 responses’ impact on supply chains? Case examples show that markets were adversely affected in ways that caused avoidable shortages of critical goods and supplies. Moreover, public procurement effectiveness was likely reduced by short-run efforts to obtain political advantage. The article begins with a brief review of disaster procurement, highlighting how public procurement professionals tried to respond to the COVID-19 pandemic. The next section delineates three politically led phenomena that adversely impacted procurement’s ability to acquire the needed goods and services, including a lack of cohesive strategy in acquiring essential personal protective equipment; preference for unproven drugs and magical thinking; and cozy relationships between the public and private sectors. The article concludes by discussing the centrality of public sector procurement professionals as a critical link for effective provision of government services, especially in times of crisis.