Unveiling Dynamic Capabilities in Public Procurement: Myths, Realities, and Strategic Transformation

This study explores the application of the dynamic capabilities (DCs) sensing, seizing, and transforming in strategic public sector procurement (SPSP) and examines whether these capabilities represent a tangible reality or a conceptual myth. Drawing on qualitative data from six Welsh local authorities (WLAs), this research investigates the extent to which DCs enable organizations to navigate complex procurement environments and achieve strategic transformation. The findings reveal significant variations in the operationalization of DCs. Larger authorities demonstrated robust sensing and seizing capabilities, leveraging market intelligence, collaborative initiatives, and innovative procurement strategies to align with broader organizational objectives. Conversely, smaller authorities faced institutional barriers, such as resource limitations and leadership turnover, which hindered their ability to implement and sustain DCs effectively. While transformative initiatives, including category management and innovative service models, were evident in some cases, challenges in leadership stability and cultural adaptability limited their widespread application. This study highlights the gap between theoretical frameworks and practical implementation, emphasizing the need for tailored approaches to building DCs in diverse public sector contexts. By mapping procurement DCs and proposing an integrated conceptual framework, this research contributes to the literature on strategic management in public procurement and offers actionable insights for policymakers and practitioners. Future research should explore DCs in broader public sector settings.