An attempt to explain the reasons why industrial equipment suppliers issue non-complying quotations during the tender stage by a survey of their beliefs and attitudes

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An attempt to explain the reasons why industrial equipment suppliers issue non-complying quotations during the tender stage by a survey of their beliefs and attitudes

 

Author: Brown, Walter James
Title: An attempt to explain the reasons why industrial equipment suppliers issue non-complying quotations during the tender stage by a survey of their beliefs and attitudes
Degree: M.B.A.
Year: 1997
Subject: Industrial procurement -- China -- Hong Kong
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: 76, [3] p. : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1410649
URI: http://theses.lib.polyu.edu.hk/handle/200/2321
Abstract: This study attempts to determine the reasons why industrial equipment suppliers in Hong Kong issue noncomplying equipment quotations to main contractors during the tender stage. A questionnaire type survey was administered to gather data by measuring suppliers' beliefs and attitudes toward this behavior. Also, their views towards the beliefs and actions of their competitors and main contractors were assessed. Results based on the collection of data and analysis enables us to gain some insight towards the reasons for this previously unexplored problem. Although not totally conclusive, the research offers several suggestions for the reasons behind this behavior that could provide a valuable basis for further research. The results of this study suggest that several components attributed to supplier's attitude towards submitting a noncomplying quotation have been identified. In general, suppliers indicated they believed that their local environment was extremely competitive. Also, they believed their competitors were quite likely to resort to deceptive practices in their attempt to submit the lowest quotation to the main contractor. Hence some speculative reasons are the intensely competitive environment, the deceptive practices of competitors, and the belief that both competitors and main contractors are mainly concerned with low price quotations. However, a test for the ability of these components to predict intention to issue a noncomplying quotation was not conclusive. The survey included a feasibility test to determine whether the main contractor could likely improve the quality of quotations prepared by suppliers. The results suggest that this may be possible by manipulating 2 factors, namely using an 1SO9000 logo and using type-written request for quotations (RFQ) instead of hand-written ones. Recommendations for doing so and a summary of the findings are explained in the report.

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