Digital Institutional Transformation of Electronic Trading Platforms in the Field of Public Procurement of the Russian Federation

Purpose: the aim of the article is to calculate the reduction in transaction costs when transferring purchases to electronic format, as well as determine the potential for digitizing the consideration of all requirements for procurement participants.

Methods: the study is based on the conceptual provisions of the institutional economic theory, the use of the system approach methodology, the use of survey research methods, and the generalization of expert assessments. The development of the proposed topic is also based on the use of methods of economic and statistical analysis, scientifc abstraction, comparison and scientifc generalizations.

Results: as a result of a detailed analysis, the digital transformation electronic trading platforms into the digital trading platforms was substantiated. The paper also shows the role of electronization and digitalization in reducing transaction costs and time spent on customers. It was revealed that the transfer of authority to the electronic trading platforms not only excludes the possibility of errors, unfair and opportunistic behavior of customers, and as a result – the imposition of fnes, but also reduces the time spent on procurement. The main approaches to improving the contract system, building its digital ecosystem, where the necessary actions are performed by the software and hardware complex, and the contract manager only "accompanies" the purchase, are proposed. The article presents the evolution of the use of digital technologies and the corresponding legal regulation in Russia.

Conclusions and Relevance: the use of digital technologies in public procurement is becoming a factor causing changes in the contractual system. The electronic form of trading has brought a new reality, opportunities for digital transformation are opening up. The use of automated counterparty verifcation technologies in the activities of electronic trading platforms is a potential factor in reducing transaction costs. In the future, it is possible to use digital technology “big data”, which helps to identify and categorize the necessary information regarding the availability of experience in the execution of similar contracts.

1. Nergiz I., Rahim Md.M. Understanding Digital Transformation of Procurement Through E-Procurement Systems Implementation: Business Partner Relationship Perspective. In: Leadership, Management, and Adoption Techniques for Digital Service Innovation, edited by Kamaljeet Sandhu. IGI Global, 2020. Р. 182-206. http://doi:10.4018/978-1-7998-2799-3.ch010 (In Eng.)

2. Balaeva O.N., Yakovlev A.A., Rodionova Y.D., Esaulov D.M. Transaction costs in the public procurement in Russia: macrolevel assessment based on microdata. Journal of institutional studies. 2018; 10(3):58-84. http://doi:10.17835/2076-6297.2018.10.3.058-084 (In Russ.)

3. Volchik V.V., Nechaev A.D. Transactional analysis of the sphere of public procurement: Monograph. Rostov-on-Don, 2015. 144 р. (In Russ.)

4. Mindich D.A. Electronic trading platforms in Russia. Business Strategies. 2014; (6):4. https://doi.org/10.17747/2311-7184-2014-6-4 (In Russ.)

5. Duraku A. Public Expenditures Through Public Procurement. European Journal of Engineering and Formal Sciences. 2018; 2(2):40-49. https://doi.org/10.26417/ejef.v3i1.p40-49 (In Eng.)

6. Kosmol T., Reimann F., Kaufmann L. You'll never walk alone: Why we need a supply chain practice view on digital procurement. Journal of Purchasing and Supply Management. 2019; 25(4):100553. https://doi.org/10.1016/j.pursup.2019.100553 (In Eng.)

7. Bienhaus F., Haddud A. Procurement 4.0: factors influencing the digitisation of procurement and supply chains. Business Process Management Journal. 2018; 24(4):965-984. https://doi.org/10.1108/BPMJ-06-2017-0139 (In Eng.)

8. Martinez Raya A., Gonzalez-Sanchez V.M. Tender Management Relating to Imposition of Public Service Obligations on Scheduled Air Routes: An Approach Involving Digital Transformation of Procurement Procedures in Spain. Sustainability. 2020; 12(13):5322. https://doi.org/10.3390/su12135322(In Eng.)

9. Walker H., Brammer S. The relationship between sustainable procurement and e-procurement in the public sector. International Journal of Production Economics. 2012; 140(1):256-268. https://doi.org/10.1016/j.ijpe.2012.01.008 (In Eng.)

10. Somasundaram R., Damsgaard J. Policy Recommendations for Electronic Public Procurement. The Electronic Journal of e-Government. 2005; 3(3):147-156. URL: https://research.cbs.dk/en/publications/policy-recommendations-forelectronic-public-procurement (In Eng.)

11. Shastitko A.E. Transaction costs (content, assessment and relationship with transformation problems). Voprosy ekonomiki. 1997; (359):65-76 (In Russ.)

12. Singer M., Konstantinidis G., Roubik E., Beffermann E. Does e-procurement save the state money? Journal of Public Procurement. 2009; 9(1):58-76 (In Eng.)

13. Pekolj N., Hodošček K., Valjavec L., Ferk P. Digital Transformation of Public Procurement as an Opportunity for the Economy. LeXonomica. 2019; 11(1):15-42 (In Eng.)

14. Gutselyuk E.F. Electronic auction as a potential factor in reducing the level of corruption when placing state and municipal orders: myth or reality. Terra Economicus. 2011; 9(1-2):51-56 (In Russ.)

15. Lee Y.J., Seong K.S. Developing E-Procurement Systems: A Case Study on the Government E-Procurement Systems in Korea. Public Finance and Management. 2004; 4(2):138-166. URL: https://www.econbiz.de/Record/developing-e-procurement-systems-a-casestudy-on-the-government-e-procurement-systems-inkorea-seong-kyung/10009949214 (In Eng.)

16. Campbell J.W. Public Procurement Policy in South Korea: Approaches to Sustainable Development and Anti-Corruption. The Experience of Democracy and Bureaucracy in South Korea. Public Policy and Governance. 2017; (28):159-179. https://doi.org/10.1108/S2053-769720170000028007 (In Eng.)

17. Chaduvula S.C., Chaudhari A.M., Panchal J.H., Atallah M.J. Computing without revealing: A cryptographic approach to eprocurement. Acquisition Research Program. 2018. (In Eng.)

18. Tsygankov S., Gasanova E. Electronification of the public procurement system: a comparative analysis of the experience of the Russian Federation and Ukraine. In: Digital Governance and E-Government Principles Applied to Public Procurement. 2017. Р. 295-305. https://doi.org/10.4018/978-1-5225-2203-4.ch013 (In Eng.)

19. Shmeleva M.V. Digital technologies in state and municipal procurement: the future or reality. Actual problems of Russian law. 2019; 12(109):36-42. https://doi.org/10.17803/1994-1471.2019.109.12.036-042 (In Russ.)

20. Caniato F., Longoni A., Moretto A. Effective eProcurement implementation process. Production Planning & Control. 2012; 23(12):935-949. https://doi.org/10.1080/09537287.2011.586652 (In Eng.)

21. Paulov P.A., Tikhonova K.A. Digital technologies used in the contract system for public procurement. Modern Science. 2020; 4-4:141-144 (In Russ.)

22. Croom S.R., Brandon-Jones A. Key issues in e-procurement: procurement implementation and operation in the public sector. Journal of Public procurement. 2005; 5(3):367-387. https://doi.org/10.1108/JOPP-05-03-2005-B004 (In Eng.)

23. Melnikov V.V., Lukashenko O.A. Evolution of public procurement auctions in Russia. Terra Economicus. 2019; 17(1):150-173. https://doi.org/10.23683/2073-6606-2019-17-1-150-173 (In Russ.)

24. Agapova E.V. Legislation and legislative initiatives on development in the area of procurement of goods, works, services. Scientific news. 2017; (9):36-38 (In Russ.)

25. Chopra A. AI in Supply & Procurement. Amity International Conference on Artificial Intelligence (AICAI), 2019. Р. 308-316. https://doi.org/10.1109/AICAI.2019.8701357 (In Eng.)

26. O’Reilly T. Government as a Platform. Innovations: Technology, Governance, Globalization. 2010; 6(1):13-40. https://doi.org/10.1162/INOV_a_00056(In Eng.)

27. Rodionova O.M. Approaches to the civil legal regulation of relations in the field of digital procurement. In: Legal regulation of the digital economy in the modern conditions of the development of high-tech business in the national and global context: a collective monograph (under the general editorship of Doctor of Law V.N. Sinyukov, D.Sc. M.A. Egorova). Moscow State Law University named after O.E. Kutafin (MSLA): "Prospect", 2019. Р. 189-197 (In Russ.)

28. Volchik V.V. The institutional structure Evolution of public procurement in Russia. Journal of Economic Regulation. 2011; 2(2):56-67 (In Russ.)

29. Neupane A., Soar J., Vaidya K., Yong J. Role of public e-procurement technology to reduce corruption in government procurement. In: 5th International Public Procurement Conference (IPPC5), 17-19 August 2012, Seattle, United States. URL: http://eprints.usq.edu.au/id/eprint/21914 (In Eng.)

30. Korytcev M.A., Belokrylov K.A. The problems of transplantation and modification of economic procurement institutes in modern Russia. Journal of Economic Regulation. 2014; 5(2):33-46 (In Russ.)

31. Rosa I., de Almeida J. Digital transformation in the public sector: Electronic procurement in Portugal. In: Digital Multimedia: Concepts, Methodologies, Tools, and Applications. 2018. Р. 497-518. https://doi.org/10.4018/978-1-5225-3822-6.ch025 (In Eng.)

32. Khabrieva T.Ya. Law Facing the Challenges of Digital Reality. Journal of Russian Law. 2018; 9(261):5-16. https://doi.org/10.12737/art_2018_9_1 (In Russ.)

33. Shamrin A.T. Hello new digital world! Government order: management, placement, provision. 2019; (58):1–2 (In Russ.)

34. Gladilina I.P., Sergeeva S.A., Orlyuk A.V., Stroganova E.V., Shaidullina G.M. Improving procurement management in a digital environment based on procurement monitoring. Financial markets and banks. 2020; (3):128-132 (In Russ.)

35. Tenishev A.P., Teslenko A.V. Criminal law protection amid digital disruption. Law. 2019; (6):124-131 (In Russ.)

36. Smotritskaya I.I. Digitalization of public administration as a new stage of institutional reforms. Institutional aspects of improving the quality of public administration in the context of new strategic challenges. Institute of Economics RAS. Moscow, 2019. Р. 10-25 (In Russ.)

37. Roman A.V., McCue C. E-Procurement: Myth or Reality. Journal of Public Procurement. 2012; 12(2):221-248. https://doi.org/10.1108/JOPP-12-02-2012-B003 (In Eng.)

38. Burkov A.V., Efimov A.R., Ivanov A.Yu. Transaction costs during competitive procedures (for example, educational services). State order: management, placement, provision. 2019; (58):42-47 (In Russ.)