Evaluating quality or lowest price: consequences for small and medium-sized enterprises in public procurement

Stake, Johan Y.

doi:10.1007/s10961-016-9477-4

Cited by 29 publications

(25 citation statements)

References 32 publications

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“…Research on the effectiveness of the "EU approach" has cast doubt on the efficacy of some its elements. Stake (2017), using Swedish PP contract award data, concludes that the use of "most economically advantageous" criteria in tender awards rather than lowest price did not increase SME participation and success rates. A reason for this may be the finding by Ancarani et al (2019) based on a survey of SMEs in Canada, Hungary, and Italy that administrative requirements or price competitiveness is not regarded as a major barrier to participation in procurement auctions.…”

Section: Public Procurement Regulation and Smesmentioning

confidence: 97%

Procurement policy and SME participation in public purchasing

Hoekman

Taş

2020

Small Bus Econ

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This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.

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Section: Public Procurement Regulation and Smesmentioning

confidence: 97%

Procurement policy and SME participation in public purchasing

Hoekman

Taş

2020

Small Bus Econ

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“…Surprisingly, research that has focused on SMEs in public procurement is still rather limited (Karjalainen and Kemppainen, 2008; Reed et al , 2005). Several contributions have demonstrated that the successful participation of SMEs in public tendering can lead to a number of economic advantages throughout the public–private supply chain, such as higher innovation rates, and that it is advisable to consider them (Stake, 2015; Carter et al , 1999; Erridge et al , 1998). However, there have not been many studies that address or even test the assumption that SME support through a higher number of lots is effective and actually increases SME success rates.…”

Section: Review Of Small- and Medium-sized Enterprise Support In Public Procurement Through Lotsmentioning

confidence: 99%

“…Additionally, several authors address the issue of SME support, but with another focus. Stake (2015), for example, examined the award criteria and their influence on SME success. Flynn and Davis (2017) examined the influence of the relational or procedural capabilities of an SME with regard to its cooperation with a public buyer.…”

Section: Review Of Small- and Medium-sized Enterprise Support In Public Procurement Through Lotsmentioning

confidence: 99%

Factors that influence the success of small and medium-sized suppliers in public procurement: evidence from a centralized agency in Germany

Glas

Eßig

2018

SCM

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Purpose One of the major methods to promote small- and medium-sized enterprises (SMEs) in public procurement is to split tenders into lots. The basic assumption is that SMEs have better chances of awarding smaller or more specialized contracts. This paper aims to investigate whether this widely accepted assumption is correct. Design/methodology/approach This article examines four hypotheses about the factors that influence SME success in public procurement. The empirical analysis uses real data from 380 contract award files and logistic regression to test the hypotheses. Findings The results show that a higher number of lots in a tender does not significantly increase the success rate of SMEs, and other factors, including the type of public procurement procedure, the number of participating companies and the overall tender volume, significantly influence SME success. Research limitations/implications There are several implications for theory and practice, including the need to further strengthen the academic evaluation of public procurement policies, the suggestion to implement SME support instruments in public legislation with the utmost caution in practice and the managerial indication that SME competitiveness is more relevant to their success in public bidding than public support policies. Originality/value The findings stand in fundamental contrast to the legal regulations, which postulate that lots are the driving force for SME promotion in public procurement. This is also in contrast to public procurement policies that, for many years, have recommended splitting contracts into smaller lots to become SME-friendly.

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“…The use of the MEAT criteria as one of the award criteria and its effects has been the subject of several studies. Stake [26] has investigated the effect of the MEAT criteria on small and medium-sized enterprises (SMEs) in public procurement. The study used procurement data from Sweden and found no significant effect on SME participation in procurement calls for tenders as a result of using MEAT in firm evaluations.…”

Section: Introductionmentioning

confidence: 99%

Sustainable Public Procurement in Central European Countries. Can It Also Bring Savings?

2020

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The efficiency of public resource use and its strategic framework with respect to sustainable public procurement policies, such as the most economically advantageous tender (hereafter MEAT), has become an important topic nowadays. Therefore, the study examines the determinants of savings creation within MEAT in Central European countries. It uses a dataset published in the Tenders Electronic Daily database in 2017–2018 about contract award notices and carries out a generalized linear model to study the determinants of savings creation within MEAT. The findings suggest that when services are procured within MEAT, the savings are considerably higher than compared to works. If the framework agreement takes place in a procurement process, the savings are significantly smaller. In cases where the subject of procurement is not co-financed by EU funds, the savings are higher than in the case that they are. If an open type of procurement is used, the savings are seemingly smaller than in cases where a non-open type of procurement takes place. When the contract is awarded to a single supplier, the savings are higher than otherwise. A higher number of total offers, as well as a higher number of offers from small and medium-sized enterprises, induce higher savings. It can be concluded that the use of sustainable public procurement subtly reduces the creation of savings.

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Evaluating quality or lowest price: consequences for small and medium-sized enterprises in public procurement

Cited by 29 publications

References 32 publications

Procurement policy and SME participation in public purchasing

Procurement policy and SME participation in public purchasing

Factors that influence the success of small and medium-sized suppliers in public procurement: evidence from a centralized agency in Germany

Sustainable Public Procurement in Central European Countries. Can It Also Bring Savings?

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