Procurement Ethics and Performance of State-owned enterprises in the United States

  • Azumendi Boardman Brown George Washington University
  • Stanbury Cowden George Washington University
  • Schnackenberg Murph Wright George Washington University

Abstract

Procumbent ethics is critical in enhancing the performance of organizations. The study's objective was to look at state-owned enterprises' procurement ethics and performance in the United States. The study adopted the explanatory research design. The target population included six federal-owned enterprises in the United States. These enterprises included Commodity Credit Corporation, Federal Crop Insurance Corporation, Millennium Challenge Corporation, Pension Benefit Guaranty Corporation, Tennessee Valley Authority, and Federal Crop Insurance Corporation. The key respondents in the study included managers and support staff. Questionnaires were used to collect the data. The study found that procurement ethics is positively and significantly related to performance. The ethic procurement ethics include demonstrating high levels of integrity, transparency and accountability in the procurement process. The study concluded that integrity in leaders includes being honest, trustworthy and reliable in an organization. Leaders with integrity act per their words and accept their mistakes instead of hiding them, blaming their team, or making excuses. A leader has to set a good example and be honest with the other members who contribute significantly to achieving organizational goals. Understanding the way to improve accountability in the public sector is essential to ensure sound management. Transparency creates trust and encourages information sharing, which is critical in the organization. Leaders demonstrate accountability by taking responsibility for the outcomes of their actions and decisions regardless of the consequences. The leaders with integrity act per their words and accept their mistakes instead of hiding them, blaming their team, or making excuses. The study recommended the leaders of the enterprises need to set a good example and be honest with the other employees who contribute significantly to achieving organizational goals. Leaders in the government of the USA are supposed to carry the torch as noble servants of society and must never exploit their obligation to serve the public and also the fatal distractions of pride and vanity should be highly avoided. It is also recommended that the federal state enterprises be regularly checked by the agencies responsible for oversight.

Keyword: Procurement Ethics, Performance, State-owned enterprises, United States

Author Biographies

Azumendi Boardman Brown, George Washington University

 Postgraduate student, George Washington University

Stanbury Cowden, George Washington University

Lecturer, George Washington University

Schnackenberg Murph Wright, George Washington University

Lecturer, George Washington University

References

Aivazian, V. A., Ge, Y., & Qiu, J. (2020). Can corporatization improve the performance of state-owned enterprises even without privatization? Journal of corporate finance, 11(5), 791-808.

Andrés, L. A., Guasch, J. L., & Azumendi, S. L. (2019). Governance in state-owned enterprises revisited: the cases of water and electricity in Latin America and the Caribbean. World Bank Policy Research Working Paper, 4(1), 128-135

Boardman, A. E., & Vining, A. R. (2017). Ownership and performance in competitive environments: A comparison of the performance of private, mixed, and state-owned enterprises. The Journal of Law and Economics, 32(1), 1-33.

Brown, M. E., & Mitchell, M. S. (2019). Ethical and unethical Leadership: Exploring new avenues for future research. Business Ethics Quarterly, 20(4), 583-616.

Bruton, G. D., Ahlstrom, D., & Li, H. L. (2020). Institutional theory and entrepreneurship: where are we now and where do we need to move in the future? Entrepreneurship theory and practice, 34(3), 421-440.

Chintraruck, A., & Walsh, J. (2016). Bangkok and the Floods of 2011: Urban Governance and the Struggle for Democratization. Disaster governance in urbanizing Asia, 6 (13) 195-209).

Felix, C. O., (2019). Examining leadership style and ethical reasoning in Nigeria public sector (Doctoral dissertation, Universiti Utara Malaysia).

Khudhair, A. A., Norwani, N. M., Khalid, A. A. H., & Aljajawy, T. M. (2019). The Relationship between Transparency and Financial Performance in Iraqi Corporations. Transylvanian Review of Administrative Sciences, 57(2), 18-41

Liddle, J. (2018). Aligning vertical structures and horizontal relationships: collaborative leadership and accountability mechanisms to enhance economic growth in England. International Review of Administrative Sciences, 84(4), 659-674.

MacAvoy, P. W., Stanbury, W. T., Yarrow, G., & Zeckhauser, R. (Eds.). (2017). Privatization and state-owned enterprises: Lessons from the United States, Great Britain and Canada (Vol. 6). Springer Science & Business Media.

Ramamurti, R., & Vernon, R. (2018). Privatization and control of state-owned enterprises. World Bank Publications.

Schillemans, T. (2021). Moving beyond the clash of interests: On stewardship theory and the relationships between central government departments and public agencies. Public Management Review, 15(4), 541-562.

Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784-1810.

Shapiro, J. P., & Stefkovich, J. A. (2020). Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge, London

Stan, C. V., Peng, M. W., & Bruton, G. D. (2014). Slack and the performance of state-owned enterprises. Asia Pacific Journal of Management, 31(2), 473-495.

Suddaby, R. (2015). Can institutional theory be critical? Journal of Management Inquiry, 24(1), 93-95.

Tang, J., Tang, Z., & Cowden, B. J. (2017). Exploring the relationship between entrepreneurial orientation, CEO dual values, and SME performance in state–owned vs. nonstate–owned enterprises in China. Entrepreneurship Theory and Practice, 41(6), 883-908.

Wright, B. E., Hassan, S., & Park, J. (2019). Does a public service ethic encourage ethical behaviour? Public service motivation, ethical leadership and the willingness to report ethical problems. Public Administration, 94(3), 647-663.

Zeckhauser, R. J., Horn, M., Murphy, K. J., & Peltzman, S. (2020). The control and performance of state-owned enterprises. In Privatization and state-owned enterprises (pp. 7-75). Springer, Dordrecht.
Published
2021-07-31
How to Cite
Brown, A. B., Cowden, S., & Wright, S. M. (2021). Procurement Ethics and Performance of State-owned enterprises in the United States. Journal of Procurement & Supply Chain, 5(2), 1-9. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-procurement-supply/article/view/849
Section
Articles