Investigation of procurement risk management strategies in the post-contract award phase

Abstract

Yates, Nicky - Associate SupervisorThis research empirically investigated how procurement risk management (PRM) strategies are used to manage risks in the post-contract award phase. Through three sequential papers, this study adopted multiple methods to gain insights into the procurement risks, risk management strategies, and risk management tools and techniques used in the post-contract award phase in manufacturing sector. Paper 1 is a literature review of the risk management strategies used in the three procurement phases: pre-contract, selection and contracting, and post-contract award. The author conducted an SLR of 100 peer-reviewed articles published between 2000 and 2025. The key findings of this study are twofold. First, it synthesized four main themes: procurement risks, procurement risk management tools and techniques, procurement risk mitigation strategies, and factors that influence the selection of risk mitigation strategies across the three procurement phases. Second, the findings highlighted that procurement risk management tools and techniques in the post-contract award phase have been neglected in the literature compared to the pre-contract, and selection and contracting phases. Paper 2, an empirical study, adopted a qualitative approach to gain insights into procurement risk management in the post-contract award phase. The author interviewed Procurement professionals (23) from 7 manufacturing industries in the United Kingdom (UK) and highlighted three key findings based on the interview insights. First, the results identified five risk categories: supplier performance, contract design, supplier relationship, ethical, and disruption risks. Second, procurement professionals combined technological tools, such as data analytics and machine learning, with human engagement techniques, including site visits and review meetings, to identify and assess risks and plan mitigation strategies. Third, a combination of preventive and reactive PRM strategies were implemented in the post-contract award phase. Paper 3, an empirical study, examined how sociological mechanisms affect procurement risks and procurement risk management performance during the post-contract award phase. A quantitative survey was conducted among 313 procurement professionals from the US automotive manufacturing industry. This study has four key findings. First, combining trust with information sharing, commitment, and flexibility mitigates the negative effects of switching costs on procurement risk management performance than using trust alone. Second, combining trust with information sharing, commitment, and flexibility mitigates the negative effects of switching costs and negotiation costs on procurement risk management performance than using trust alone. Third, sociological constructs are insufficient as PRM mechanisms to mitigate the negative impact of environmental uncertainties on procurement risk management performance. Fourth, sociological constructs are insufficient as PRM mechanisms to mitigate the negative influence of supplier opportunistic behaviours on procurement risk management performance. Overall, this thesis makes several key contributions and extends the literature in the following ways. This SLR study contributes to the existing literature by aligning the fragmented strands of risk management literature and systematically synthesizing the procurement risks, the tools and techniques for identifying, assessing, and mitigating risks, and the risk mitigation strategies in each procurement phase. Second, it provides a new, empirically based procurement risk management model that integrates procurement risk identification, assessment, and mitigation strategies into the post-contract award phase. Third, it provides new empirical evidence that combining trust with information sharing, commitment, and flexibility mitigates the negative effects of switching costs and negotiation costs on procurement risk management performance more effectively than using trust alone. Fourth, it provides new empirical evidence that combining trust with information sharing, commitment, and flexibility mitigates the negative effects of switching costs and negotiation costs on procurement risk management performance than using trust alone.PhD in Leadership and Managemen