SMEs' market orientation toward public sector customers in public procurement

Saastamoinen, Jani; Reijonen, Helen; Tammi, Timo

doi:10.1108/ijpsm-05-2020-0131

Cited by 13 publications

(28 citation statements)

References 55 publications

(113 reference statements)

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“…Following previous studies (e.g. Reijonen et al , 2016; Flynn and Davis, 2017; Saastamoinen et al , 2020), we use the number of bids submitted (BIDS) and the number of contracts (CONTRACTS) won as a consortium as the proxies for activity and success in public sector tenders.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Bartlett scores of the resulting extracted components were used as the variables of interest in regression analyses. Since our dependent variables are count variables, we follow Saastamoinen et al (2020) and use negative binomial regression to investigate how networks are correlated with submitted consortium bids and won consortium contracts [2]. We also carry out a robustness check, using ordinary least squares (OLS) regression.…”

Section: Methodology and Datamentioning

confidence: 99%

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The importance of SMEs’ network partners in consortium bidding for public sector tenders

Reijonen

Saastamoinen

Tammi

2021

IJPSM

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PurposeThe aim is to examine the importance small and medium-sized enterprises (SMEs) see in different network partners regarding successful tendering in public procurement, and whether this perception predicts the number of joint bids and wins.Design/methodology/approachThe data were collected by an electronic questionnaire which was sent to the registered users of the leading electronic platform for public procurement in Finland. The data were analysed with statistical methods.FindingsThe findings suggest that a favourable perception of the importance of horizontal networks in public procurement is associated with a larger number of joint bids and better success in joint bidding. However, the results do not establish a positive correlation between vertical networks and consortium bidding.Research limitations/implicationsThe data were collected from a single EU country. Since the criteria for bidding consortia may vary between countries, different results might have been achieved from other countries.Practical implicationsSMEs should be encouraged to form bidding consortia and acquire related experience. Policymakers should minimise barriers to consortium bidding, e.g. by offering more information. They should also assess the merits of joint bidding because they rarely encourage SMEs to bid as a consortium.Social implicationsConsortium bidding is a way of enhancing SMEs’ possibilities to participate in public tender contests, even in large contracts.Originality/valueWhile consortium bidding has been recognised to enhance SMEs’ possibilities of participating in public procurement, there is limited research into how SMEs’ network collaborations relate to bidding as a consortium.

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Section: Methodology and Datamentioning

confidence: 99%

Section: Methodology and Datamentioning

confidence: 99%

The importance of SMEs’ network partners in consortium bidding for public sector tenders

Reijonen

Saastamoinen

Tammi

2021

IJPSM

Self Cite

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“…Then, they need to design and commit to a medium-term strategy with allocated resources, and carry out a systematic selection of markets (identifying priority countries/bodies) and prepare to implement the aforementioned strategy. Saastamoinen et al (2020) and Reijonen et al (2016) have already shown that the level of SME participation in public tenders is linked to how entrepreneurial their approach is, i.e. how actively they perform in the initial search and presentation phases of the process.…”

Section: Discussionmentioning

confidence: 99%

The upcoming rise of SMEs in cross-border public procurement: is it a matter of networking capabilities?

et al. 2022

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The participation of SMEs in public procurement is a recurring theme in recent academic literature. However, little attention has been paid to its influence in cross-border procurement. To participate in this market, SMEs must overcome barriers that make the task difficult and minimise their chances of winning contracts. Within this context, dynamic capabilities in general, and networking ones in particular, are crucial to overcome barriers and boost performance. This article presents an abductive qualitative research study of multiple cases using CAQDAS to analyse which networking capabilities prepare SMEs for cross-border public procurement processes. The results show not only how these capabilities have enabled SMEs to perform well in this environment but also which barriers have helped them to overcome each phase of the procurement process. The article also provides recommendations for both SMEs that decide to enter this market and the administrations that wish to support them.

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“…Tendering capabilities and small and medium enterprise involvement in public procurement SME involvement in public procurement is a widely studied topic. Existing research examines aspects that include a firm's strategic orientation, regulatory quality, training, competitiveness and market orientation in relation to SME involvement (Saastamoinen et al, 2020;Tammi et al, 2017;Reijonen et al, 2018). Empirical research examining the influence of tendering capabilities on SME involvement in public procurement is still scarce.…”

Section: Small and Medium Enterprise Governance Mechanisms And Tendering Capabilitiesmentioning

confidence: 99%

An examination of SME involvement in public procurement under bid lot sizing

Namagembe

Mpeera

Kalid

2021

JOPP

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Purpose This study aims to examine the influence of market logics on tendering capabilities and small and medium enterprise (SME) involvement in public procurement, the influence of SME governance mechanisms on tendering capabilities and SME involvement in public procurement and the influence of tendering capabilities on SME involvement in public procurement. Design/methodology/approach Data was collected from owners/managers of SMEs registered by the Public Procurement and Disposal of Public Assets Authority. The SPSS software and CB-SEM software were used to obtain results on the influence of market logics on tendering capabilities and SME involvement in public procurement, the influence of SME governance mechanisms on tendering capabilities and SME involvement in public procurement and the influence of tendering capabilities on SME involvement in public procurement. Findings Findings indicated that SME involvement in public procurement is mainly influenced by their governance mechanisms whilst both market logics and governance mechanisms had a positive influence on tendering capabilities of SME firms. Market logics and tendering capabilities had no effect on SME involvement. Research limitations/implications The study mainly focussed on SMEs’ involvement in public procurement. The research has implications for decision makers in government and SME firms concerned with enhancing levels of SME involvement in public procurement activities. Originality/value Many governments are now focussing on procurement lot sizing so as to increase SME involvement in public procurement. Despite the use of lot sizing, SME involvement in public procurement is still low in many developing countries and also declining in others. Aspects such as market logics and governance mechanisms that may help understand the variations in involvement have not been given significant attention.

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SMEs' market orientation toward public sector customers in public procurement

Cited by 13 publications

References 55 publications

The importance of SMEs’ network partners in consortium bidding for public sector tenders

The importance of SMEs’ network partners in consortium bidding for public sector tenders

The upcoming rise of SMEs in cross-border public procurement: is it a matter of networking capabilities?

An examination of SME involvement in public procurement under bid lot sizing

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