Ways to improve the project management efficiency in a centralized public procurement system: A structural equation modeling approach

Wang, Y; Liu, J; Zuo, J and Rameezdeen, R (2020) Ways to improve the project management efficiency in a centralized public procurement system: A structural equation modeling approach. Engineering, Construction and Architectural Management, 27(1), pp. 168-185. ISSN 0969-9988

Abstract

Purpose: The purpose of this paper is to investigate driving factors that improve the project management efficiency (PME) in centralized public procurement systems. Design/methodology/approach: Employees in four public-sector organizations in China were surveyed. The structural equation modeling was employed to examine the relationship amongst those variables. Findings: Organizational culture (OC) is an effective method to improve PME, and employee quality is the most critical factor of OC in this system. Job satisfaction (JS) is another significant contributor to PME and satisfaction with fairness of salary in this system being the key factor of JS. Job analysis (JA) has indirect influence on PME through JS and OC, whereas the job structure in this system is the most critical factor for JA. Practical implications: An operational way to improve PME is to implement it from the perspectives of employee, organization and technique. At the organizational level, it is imperative to strengthen the OC by a well-structured recruitment system and to improve PME via well-design training. At the person level, both financial (i.e. income and welfare) and career incentives (i.e. promotion opportunities and a sense of belonging) are proposed to achieve employees' JS to improve PME. At the technique level, JA approach (i.e. job rotation) is recommended to enlarge the positive influence of OC and JS on PME. These can not only ensure the management professionalism in a centralized public procurement system but can also motivate employees and maximize PME. Originality/value: PME in a centralized public procurement system will be improved by addressing these key factors and their interrelationships. This provides detailed pathways for the centralized public procurement system to achieve better PME via optimal OC and JS and reasonable JA in China. In addition, the institutional and administrative traditions may vary significantly across cities, regions and countries. Therefore, such contextual differences should be taken into consideration for the improvement of PME in a centralized public procurement system.

Item Type: Article
Uncontrolled Keywords: management; organization; project management; questionnaire survey
Index terms: survey, job analysis, structural equation modelling, organizational culture, professionalism, China, questionnaire, career, methodology, critical factor, job satisfaction, promotion, satisfaction, efficiency, project management, recruitment, procurement system, income, fairness
Subjects: risk assessment, workforce, data collection methods, contractual arrangements, economic analysis, project delivery, Geography, project management theory and practice, professional development, management, performance management, research methods, leadership, statistical analysis, sociology
Topics: Organizational Design, Human Resources, Quality Management, Risk Management, Procurement, Business Strategy, Geographical Context, Project Management, Research Practice, Information Management
Descriptive scope: 5 PCTEA

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