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Division of activities and tasks - challenges and efficient structures for market-based procurement of public transport services

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  • Markku Tinnilä
  • Jukka Kallio

Abstract

This paper illustrates the challenges of purchasing public services from private markets by analysing the bus tenders in a European city area with a population of approx. 1 million. City bus services have traditionally been organised by public organisations, while recently these are increasingly arranged in a combination of public and private services with a variety of organisational models. The paper analyses the typical challenges connected to public procurement of market-based services, as well as, based on a literature review analyses the case from viewpoints of division of labour, activities and tasks, efficient market structures in bus services, challenges connected to service purchasing, as well as, scale and scope economies in services.

Suggested Citation

  • Markku Tinnilä & Jukka Kallio, 2017. "Division of activities and tasks - challenges and efficient structures for market-based procurement of public transport services," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 10(3), pages 360-380.
    • Handle: RePEc:ids:ijpman:v:10:y:2017:i:3:p:360-380
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