PurposeSocial procurement policies are an emerging policy instrument being used by governments around the world to leverage infrastructure and construction spending to address intractable social problems in the communities they represent. The relational nature of social procurement policies requires construction firms to develop new collaborative partnerships with organisations from the government, not-for-profit and community sectors. The aim of this paper is to address the paucity of research into the risks and opportunities of entering into these new cross-sector partnerships from the perspectives of the stakeholders involved and how this affects collaborative potential and social value outcomes for intended beneficiaries.Design/methodology/approachThis case study research is based on a unique collaborative intermediary called Connectivity Centre created by an international contractor to coordinate its social procurement strategies. The findings draw on a thematic analysis of qualitative data from focus groups with 35 stakeholders from the construction, government, not-for-profit, social enterprise, education and employment sectors.FindingsFindings indicate that potentially enormous opportunities which social procurement offers are being undermined by stakeholder nervousness about policy design, stability and implementation, poor risk management, information asymmetries, perverse incentives, candidate supply constraints, scepticism, traditional recruitment practices and industry capacity constraints. While these risks can be mitigated through collaborative initiatives like Connectivity Centres, this depends on new “relational” skills, knowledge and competencies which do not currently exist in construction. In conclusion, when social procurement policy requirements are excessive and imposed top-down, with little understanding of the construction industry's compliance capacity, intended social outcomes of these policies are unlikely to be achieved.Originality/valueThis research draws on theories of cross-sector collaboration developed in the realm of public sector management to address the lack of research into how the new cross-sector partnerships encouraged by emerging social procurement policies work in the construction industry. Contributing to the emerging literature on cross-sector collaboration, the findings expose the many challenges of working in cross-sector partnerships in highly transitionary project-based environments like construction.

COVID-19 has created or amplified economic and social crises internationally. Australia entered its first recession in 30 years and saw a significant rise in unemployment. In response, Australian governments have increased their commitments to infrastructure construction to stimulate the national economy and combined this with new social procurement policies that aim to create social value for targeted populations like Indigenous peoples and unemployed youth. However, emerging social procurement research in construction shows a disconnect between policymakers and the practitioners who must implement them. Therefore, the aim of this paper is to provide theoretical and practical insights on creating social value in the context of construction employment created by new social procurement policies. Reporting a survey of 107 construction workers in Australia, it is shown that social procurement policies and construction employers can create social value when they provide work benefits like adequate pay and training and development and cultural benefits like inclusive workplaces. Recommendations are made to demonstrate how the results presented in this article can be used by contractors to create social value. This research is significant for advising how increased infrastructure spending commitments in Australia can create social and economic outcomes for workers, ensuring a sustainable recovery from COVID-19 crises.

There has been a recent proliferation of social procurement policies in Australia that target the construction industry. This is mirrored in many other countries, and the nascent research in this area shows that these policies are being implemented by an emerging group of largely undefined professionals who are often forced to create their own roles in institutional vacuums with little organisational legitimacy and support. By mobilising theories of how organisational champions diffuse innovations in other fields of practice, this paper contributes new insights into the evolving nature of these newly emerging roles and the motivations which drive these professionals to overcome the institutional inertia they invariably face. The results of semi-structured interviews, with fifteen social procurement champions working in the Australian construction industry, indicate that social procurement champions come from a wide range of professional backgrounds and bring diverse social capital to their roles. Linked by a shared sense of social consciousness, these champions challenge traditional institutional norms, practices, supply chain relationships, and traditional narratives about the concepts of value in construction. We conclude that, until normative standards develop around social procurement in the construction industry, its successful implementation will depend on external institutional pressures and the practical demonstration of what is possible in practice within the performative constraints of traditional project objectives.

Governments of highly developed western nations with colonised Indigenous populations such as Australia, Canada and South Africa are increasingly turning to social procurement policies in an attempt to solve social inequities between Indigenous people and other citizens. They seek to use policies and funds attached to infrastructure development and construction to encourage private sector companies to provide training, employment and business opportunities for Indigenous people in the communities in which construction occurs. This paper outlines the rise of these policies and their origins, and critiques their connection to Indigenous people's human rights, impact measurement, evaluation and accountability mechanisms. In doing so this paper also explores benefits and potential of social procurement policies, as well as risks. Drawing on insights from an Aboriginal-developed evaluation framework, Ngaa-bi-nya, and Indigenous Standpoint Theory, this paper highlights Indigenous peoples' definitions of value and outlines their relevance to social procurement. Introducing the notion of cultural counterfactuals into social impact measurement research, it also offers a new conceptual framework to enable policymakers and practitioners to more accurately account for social procurement value and impact, including Indigenous people's notions of social value.

Purpose The purpose of this paper is to explore the barriers to entry for Indigenous businesses into the Australian construction industry. Design/methodology/approach A national survey was conducted with 33 Indigenous businesses operating in the Australian construction industry. Findings The findings show that Indigenous enterprises face similar challenges to many small non-Indigenous enterprises wishing to enter the industry. These include adjusting to unique construction industry cultures and practices, breaking into existing business networks and building social capital and being under-cut by industry incumbents and competitors when tendering for projects. These barriers are similar to those faced by other non-Indigenous social enterprises, although Indigenous enterprises do appear to experience relatively greater difficulty in starting-up their businesses and in securing sufficient capital, finance and assistance to enable them to scale-up and tender for normal work packages at a competitive price. Research limitations/implications The results are limited to Australian Indigenous businesses. The survey does not allow a comparison of non-Indigenous and Indigenous businesses, although comparison of results with existing non-Indigenous research into small to medium-sized firms in construction does allow some tentative insights. These need to be explored further. Practical implications These results indicate that there are significant barriers to be addressed within the Australian construction industry if government indigenous procurement policies are to achieve their stated aims of increasing the number of Indigenous firms in the industry. The results also have important implications for Indigenous businesses and for non-Indigenous firms operating in the Australian construction industry. Social implications This is an important gap in knowledge to address if countries like Australia are to redress the significant inequalities in income and health suffered by Indigenous populations. Originality/value In countries like Australia, with significant Indigenous populations, governments are seeking to address persistent disadvantage by using new social procurement initiatives to create quasi construction markets for Indigenous enterprises to participate in the construction industry. While there is an emerging body of research into the barriers facing mainstream small to medium-sized enterprises and, to a lesser extent, social enterprises in construction, the barriers to entry facing Indigenous construction enterprises have been largely ignored.