Investigating the effect of tendering capabilities on SME activity and performance in public contract competitions

Barriers to SME participation in public procurement have been the focus of research for many years. Much less attention has been paid to the predictors of SME success. This paper examines the role that tendering capabilities - relational and procedural - play in explaining SME activity and performance in public contract competitions. Analysis of primary survey data from 3010 SMEs supports a capability-based perspective. Procedural capability has a significant effect on number of tenders submitted and value of contract sought. Relational capability does not. However, procedural and relational capability each has a significant and positive effect on contract win-ratio and percentage of total revenue derived from public contracts. For SMEs, these findings underline the importance of investing in tendering skills and devising buyer engagement strategies. Enterprise support agencies and public sector organisations can play their part through the provision of targeted training programmes and better communication with SME suppliers respectively

The rhetoric and reality of SMEfriendly procurement

Small- and medium-sized enterprise-friendly policies are central to public procurement. The extent to which these policies have been put into practice has gone largely untested. To address this gap, a survey of SMEs’ reported experiences of policy implementation was conducted. Ireland served as the research context. Policy implementation was found to be limited. Company size was a significant predictor of SMEs’ experiences, with micro-enterprises more negative than small or medium-sized enterprises. The authors explain the policy– practice divide and make recommendations for improvement

Firms’ experience of SME-friendly policy and their participation and success in public procurement

Purpose – The purpose of this study is to test the relationship between firms’ experience of SME-friendly policy and their participation and success in public procurement. Methodology – Hypothesised relationships between SME-friendly policy and three outcome variables - frequency of tendering, success rate in public contract competitions, and commercial orientation towards the public sector - are tested using survey data from 2755 SME respondents. Findings – SME-friendly policy is found to be significant in explaining success rates and commercial orientation towards the public sector marketplace. It is not significant in explaining frequency of tendering. Originality – This study puts forward and tests an original model of SME-friendly procurement policy and its associated outcomes for firms. It develops a comprehensive 16-item instrument to measure SME-friendly procurement policy. It uses SMEs as research informants instead of public buyers. Limitations – The context for the study is Ireland. However, given institutional similarities in national public procurement regimes, particularly among EU Member States, the findings have relevance beyond the Irish context. The research design is cross-sectional and so does not allow for any causal claims to be made

Theory in public procurement research

This paper examines the role of theory in public procurement research. Theoretical rigour is integral to management science, yet little is known on the extent and form of theory in public procurement. With the field starting to mature, addressing this issue is timely. From conducting a systematic literature review we find that 29 percent of articles are theoretically grounded, with the incidence of theory having increased in recent years. Economic, sociological, psychological, and management theories are all in evidence, but micro-economic theories predominate. Our findings also show that survey reporting and case studies account for almost half of all studies; procurement research is focused on organizational-level aspects more than regulatory-policy issues or public buyers; and studies to date have largely emanated from the North American and European regions. The contribution of this paper lies in clarifying the theoretical underpinnings of public procurement. Out of this we highlight the need for greater theoretical rigour, point to the under-use and even absence of theories that could have high validity and utility, and suggest a narrowing of research foci

University-based Technology Start-up Incubators – Evaluating their contribution to the co-production of knowledge, innovation and growth. Experience from the Edge

Policy makers in developed economies see merit in supporting the innovative abilities of technology entrepreneurs. It is hoped that from these highly–educated entrepreneur(s), new technology and service–based firms (NTBFs) can emerge. Indeed empirical evidence suggests that it is fast-growing young innovative firms which provide the bulk of new employment growth (Henrekson & Johansson, 2010; Storey & Greene, 2010). Start-up incubators are one of a number of micro-policy interventions with which states attempt – primarily through publically funded higher education Institutions - to support technology entrepreneurs to develop and commercialise their innovations. Incubator numbers have grown globally from their first appearance in the US in the 1950’s (for urban renewal purposes) to over 2,300 in the US and Europe currently. Since 2000, the number of incubators in US has almost trebled whilst the number in Europe has more than doubled (Bruneel et al, 2012). This latter growth has been driven primarily by technology start-up incubators, with these university – based incubators seen as important growth engines for developing knowledge economies and local and regional economic development (Etzkowitz et al. 2000, Link & Siegel, 2007). Technology start –up incubators are typically located in or near universities as they generally fall under the universities knowledge transfer remit. They typically focus on the research strengths of the university and offer a range of services to academic entrepreneurs and other incubatees such as shared office accommodation, shared support services, business support (hard), business advice (soft) and network provision (Bergek & Norman, 2008). Incubation programmes attempt to contribute to enterprise sustainability and the professional and entrepreneurial development of participants through buffering, which protects participants from the external environment (for a defined period), enabling them to develop their own internal resources; and bridging, which facilitates firms in building sustainable competitive advantage through the acquisition of external resources and networks (Amezcua et al. 2013). ). This paper outlines the methodological and data-related challenges associated with attempting to evaluate the contribution of start-up incubator services and supports to value-adding outputs, outcomes and impact. It advocates theory-based evaluation (TBE) methodology as a possible solution for effective evaluation (and policy learning) in complex research settings such as this, where a study is unable for a variety of reasons, to meet the stringent requirements of an experimental design e.g. random assignment, establishment of counterfactuals, control groups etc. TBE will deliver findings on the contribution of the multiple factors influencing a result showing whether the incubation process in a study made a contribution to an observed result and in what way? Mixed methods research designs and data analysis approaches are particularly suitable for TBE studies. An exploratory case study is used to illustrate the proposed TBE approach

The contribution of higher education-based technology start-up incubators to the co-production of knowledge, innovation and growth: Experiences from the edge

Start-up incubators are one of a number of micropolicy interventions used by states to support their technology entrepreneurs. Since 2000, the number of incubators in the United States has almost trebled while that in Europe has more than doubled. This article outlines the challenges involved in attempting to evaluate the contribution of the higher education technology start-up incubator process. It advocates theory-based evaluation (TBE) methodology as a possible solution for effective evaluation (and policy learning) in complex research settings such as this, where a study is unable, for myriad reasons, to meet the stringent requirements of experimental research design. TBE delivers findings on the contribution of the multiple factors influencing a result, thus showing whether the incubation process made a contribution to an observed result and in what way. An exploratory case study is used in this article to illustrate how the proposed TBE approach could work

The impact of size on small and medium-sized enterprise public sector tendering

This article examines the relationship between firm size and public sector tendering. The findings show that size, measured by employee number, significantly influences small and medium sized enterprises’ (SMEs) tendering resources, behaviour and success; as such, micro-enterprises are resource-disadvantaged, tender less often and have lower success rates compared to small and medium-sized firms. These findings indicate that SMEs are heterogeneous tenderers, and point to the need for more focused research on how SME characteristics influence ability and willingness to tender

The impact of size on small and medium-sized enterprise public sector tendering

This article examines the relationship between firm size and public sector tendering. The findings show that size, measured by employee number, significantly influences small and medium sized enterprises’ (SMEs) tendering resources, behaviour and success; as such, micro-enterprises are resource-disadvantaged, tender less often and have lower success rates compared to small and medium-sized firms. These findings indicate that SMEs are heterogeneous tenderers, and point to the need for more focused research on how SME characteristics influence ability and willingness to tender

Mapping public procurement in Ireland

This study reports on the results of a nationwide survey of public procurement in Ireland, carried out against a backdrop of central government reform initiatives. The survey was designed to address a knowledge deficit among academics, policy makers and practitioners on the form and functioning of public procurement in Ireland. Thus, a mapping of public procurement was undertaken in 2011 in conjunction with the National Procurement Service (NPS) of Ireland. The population of suppliers and public sector procurers registered on Ireland’s national e-procurement portal was requested to participate in this exercise by completing an online questionnaire. This yielded an extensive dataset relevant to understanding the Irish public procurement market. That data was obtained from both suppliers and public sector procurers allows for comparisons to be made across a range of variables, which is a novel addition to research in the public procurement field. The significance of the research and its findings go beyond Ireland. Contemporary issues of international concern, such as the marketplace impacts of migration to e-procurement, initiatives to create a “level playing field” for small and medium-sized (SMEs) enterprises, and the effects of European Union directives, are analysed and their importance discussed. In the next section the policy environment as it pertains to public procurement in Ireland is described. The design of the research is explained in section three and the survey findings are detailed in section four. These findings are subject to further examination and contextualisation in section five

Sustainable public procurement in practice: Case study evidence from Ireland

It is this sustainable procurement concept that serves as the focus for an exploratory case study of a local government authority in Ireland and its attempts to match procurement processes to corporate objectives. In so doing it helps to address the paucity of research on local government procurement in an Irish context. It is reported that maximising value for money and regulatory compliance need not come at the expense of facilitating small indigenous suppliers, supporting local supply chains, improving environmental outcomes and delivering a better public service. Moreover, the findings show that procurement can play a critical role in giving effect to the corporate objectives of local government authorities. The structure of the paper is as follows. Firstly, an analysis of recent policy as it relates to public sector procurement in Ireland is overviewed. The next section charts the expanding role of public procurement as reflected in both academic and policy developments. Findings from the small but growing literature on sustainable public procurement are then discussed. Thereafter, the research methodology will be outlined and the research findings described