Explaining sme participation and success in public procurement using a capability-based model of tendering

Flynn, Anthony; Davis, Paul K.

doi:10.1108/jopp-17-03-2017-b003

Cited by 24 publications

(35 citation statements)

References 53 publications

(111 reference statements)

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“…Even if it is acknowledged that lot-wise tenders are beneficial for SMEs, that judgement is often based on the deductive observation of SMEs’ proposals and government action plans (articulation of political will to support SMEs) (Loader, 2015). Other recent studies have addressed SMEs in public procurement, but they have adopted another focus (Stake, 2015; Flynn and Davis, 2017; Reijonen et al , 2014; Karjalainen and Kemppainen, 2008). Except for the data of this study, there are a lack of quantitative data available to assess the effectiveness of lot-wise tenders in public procurement, whereas there are numerous claims to enforce lots in public procurement as a means to support SMEs.…”

Section: Discussionmentioning

confidence: 99%

“…That poses the question of how contract awards can be distinguished with regard to competition. In contrast to other approaches (Flynn and Davis, 2017), this study ranks the legally given types of award procedures according to competition. For example, an open procedure is advertised in publicly available media so that anyone who is interested in the contract will be invited to tender to ensure maximum competition (European Commission, 2014b).…”

Section: Methodsmentioning

confidence: 99%

“…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. Tammi et al (2014) focused on SMEs themselves and their strategies, aspirations and abilities in public procurement.…”

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

confidence: 99%

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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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Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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

confidence: 99%

See 1 more Smart Citation

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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“…In the field of smart cities, the involvement of start-ups and SMEs in public procurement for innovation is considered essential, as they intensify competition by offering greater choices to the public purchasers with their skills and competencies to create innovative products [36]. From a sustainability and social perspective, encouraging the SMEs' involvement in public contracting contributes to the economic and social health of a region, creating jobs and fostering entrepreneurship and innovation throughout the wider economy [37][38][39].…”

Section: Innovation-friendly Considerations In the European Public Prmentioning

confidence: 99%

Mechanisms for Innovative-Driven Solutions in European Smart Cities

Manika

2020

Smart Cities

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Innovative procurement is an important tool for smart cities to improve the effectiveness and efficiency of public services, especially in sectors such as smart living (for example, health conditions), smart mobility, or smart environment (with emphasis on waste and water management). The European Union (EU) public procurement legislative framework encourages the deployment of innovation by several means (including, inter alia, the introduction of competitive procedures promoting innovation, use of award criteria based on factors other than price, and the life-cycle approach) and sets the scene for a more strategic procurement for EU smart cities. Despite the proven benefits of innovative procurement, public authorities, driven mainly by their preference to follow traditional tender procedures under solely budgetary considerations, have hesitated to introduce innovation. The case study of Greece is examined, and it is concluded that despite the adopted policy measures that are conducive for mainstreaming innovation procurement, innovation procurement in Greece is at an early development stage. One of the reasons that hinder the application of innovation-oriented procedures by public purchasers is their insufficient knowledge of the available legal framework. The broad objective of this article is to outline the main innovation-friendly tools, as set out in the applicable European public procurement legislative framework that smart cities should adopt in order to make strategic use of innovative procurement.

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“…Moreover, public procurement of innovation supports access to markets for SMEs and help address major societal challenges (European Union, 2018). The benefits of public sector contracting to SMEs lies in its ability to stimulate innovation when buyers insist on technologically-sophisticated products that encourage firms to develop novel service solutions (Georghiou et al , 2014; Flynn and Davis, 2017). Following the enactment of the new EU procurement directive (Directive 2014/24/EU), it is important to gain more insights into the implementation of public procurement of innovative solutions at an organizational level, an aspect that has not been addressed explicitly by extant literature.…”

Section: Introductionmentioning

confidence: 99%

Implementing public procurement of innovations in an organization: lessons from Norway

Mwesiumo

Olsen

Svenning

et al. 2019

JOPP

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Purpose The purpose of this paper is to explore the drivers, enablers, barriers, key success factors, pitfalls and benefits of implementing public procurement of innovations (PPoI) in an organization. Design/methodology/approach The study deployed multiple-case design, whereby six case organizations were selected according to purposeful sampling. Data collection was carried out through in-depth semi-structured one-on-one interviews with key informants. Data analysis involved coding, synthesis, categorization and aggregation. Findings The study revealed that implementation of PPoI represents significant change in an organization, and thus, it identifies key enablers and barriers that organizations must overcome. Furthermore, the study revealed that implementation of PPoI is a necessary but not sufficient condition for reaping its benefits. Moreover, the study identified key success factors for achieving the desirable results and potential pitfalls that organizations should avoid to ensure that the execution phase is not hurt. Social implications Overall, the findings of the study imply that PPoI and the practices associated with it are valuable to the organizations implementing it and society at large. Thus, time and financial investments and the costs associated with the challenges and barriers of implementing it are justified by the resulting wider benefits and outcomes. Originality/value The study contributes by providing useful insights related to implementation of PPoI at an organizational level. Considering that extant literature provides limited insights on this subject, findings of this study should be of interest to researchers, public authorities, procurement practitioners, small- and medium-sized enterprises and other stakeholders. In particular, the study contributes to the body of knowledge on PPoI and offers actionable implications to both practitioners and policymakers.

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Explaining sme participation and success in public procurement using a capability-based model of tendering

Cited by 24 publications

References 53 publications

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

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

Mechanisms for Innovative-Driven Solutions in European Smart Cities

Implementing public procurement of innovations in an organization: lessons from Norway

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