IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v67y2024i5d10.1007_s00181-024-02615-x.html
   My bibliography  Save this article

Contesting the public works domain: examining the factors affecting presence and success of SMES in public procurement

Author

Listed:
  • Peter Nemec

    (Technical University of Košice)

Abstract

This study investigates the effects of procurement tools to support small and medium-sized enterprises (SMEs) in public contracts by analysing contract awards for public works published on Tenders Electronic Daily in 2018–2022. Focusing on dividing contracts into smaller lots, a key feature of the 2014 EU modernised procurement framework, this study’s findings reveal that splitting contracts might not necessarily attract SMEs to bid but increases their chances of winning such contracts. Other factors, such as using open and unrestricted bidding procedures and allowing SMEs to showcase their specialisation by awarding contracts based on the best price-quality ratio, positively affect the SMEs’ bidding. The findings of this study emphasise the importance of thoroughly considering individual contract characteristics and overall procurement settings to accommodate SMEs’ limited resource capacities and foster their performance in the public procurement marketplace.

Suggested Citation

  • Peter Nemec, 2024. "Contesting the public works domain: examining the factors affecting presence and success of SMES in public procurement," Empirical Economics, Springer, vol. 67(5), pages 2135-2173, November.
  • Handle: RePEc:spr:empeco:v:67:y:2024:i:5:d:10.1007_s00181-024-02615-x
    DOI: 10.1007/s00181-024-02615-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00181-024-02615-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s00181-024-02615-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anthony Flynn & Paul Davis, 2015. "The rhetoric and reality of SME-friendly procurement," Public Money & Management, Taylor & Francis Journals, vol. 35(2), pages 111-118, March.
    2. Tas, Bedri Kamil Onur, 2020. "SME Participation in Public Purchasing: Procurement Policy Matters," CEPR Discussion Papers 14836, C.E.P.R. Discussion Papers.
    3. Johan Stake, 2017. "Evaluating quality or lowest price: consequences for small and medium-sized enterprises in public procurement," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1143-1169, October.
    4. Clifford P. McCue & Eric Prier & David Swanson, 2015. "Five dilemmas in public procurement," Journal of Public Procurement, Emerald Group Publishing Limited, vol. 15(2), pages 177-207, March.
    5. Peter Nemec & Matus Kubak & Peter Dzupka, 2021. "The Transition of the Visegrad Countries Toward Sustainable Public Procurement," Eastern European Economics, Taylor & Francis Journals, vol. 59(5), pages 487-512, September.
    6. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    7. Caroline Nicholas & Michael Fruhmann, 2014. "Small and medium-sized enterprises policies in public procurement: Time for a rethink?1," Journal of Public Procurement, Emerald Group Publishing Limited, vol. 14(3), pages 328-360, March.
    8. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    9. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.
    10. Juraj Nemec & Matus Grega & Marta Orviska, 2020. "Over-bureaucratisation in public procurement: purposes and results," Public Sector Economics, Institute of Public Finance, vol. 44(2), pages 251-263.
    11. Matus Kubak & Peter Nemec & Robert Stefko & Marcel Volosin, 2023. "On competition and transparency in public procurement during the COVID-19 pandemic in the European Union," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(2), pages 4-23, June.
    12. Kidalov Max V. & Snider Keith F., 2011. "US and European Public Procurement Policies for Small and Medium-Sized Enterprises (SME): A Comparative Perspective," Business and Politics, De Gruyter, vol. 13(4), pages 1-43, December.
    13. Peter Nemec & Robert Stefko & Matus Kubak, 2022. "Better Environmental Value Using Public Procurement: Evidence from Visegrad Group Countries," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 72(4), pages 296-327, December.
    14. Domingo Martin & Isidoro Romero & Douglas Wegner, 2019. "Individual, Organizational, and Institutional Determinants of Formal and Informal Inter‐Firm Cooperation in SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(4), pages 1698-1711, October.
    15. Alessandro Ancarani & Carmela Di Mauro & Tara Hartley & Tünde Tátrai, 2019. "A Comparative Analysis of SME Friendly Public Procurement: Results from Canada, Hungary and Italy," International Journal of Public Administration, Taylor & Francis Journals, vol. 42(13), pages 1106-1121, October.
    16. Barbara Fliess & Carlos Busquets, 2006. "The Role of Trade Barriers in SME Internationalisation," OECD Trade Policy Papers 45, OECD Publishing.
    17. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    18. Kidalov, Max V. & Snider, Keith F., 2011. "US and European Public Procurement Policies for Small and Medium-Sized Enterprises (SME): A Comparative Perspective," Business and Politics, Cambridge University Press, vol. 13(4), pages 1-41, December.
    19. Ferraresi, Massimiliano & Gucciardi, Gianluca & Rizzo, Leonzio, 2021. "Savings from public procurement centralization in the healthcare system," European Journal of Political Economy, Elsevier, vol. 66(C).
    20. Billor, Nedret & Hadi, Ali S. & Velleman, Paul F., 2000. "BACON: blocked adaptive computationally efficient outlier nominators," Computational Statistics & Data Analysis, Elsevier, vol. 34(3), pages 279-298, September.
    21. Jeffrey H. Dyer & Wujin Chu, 2003. "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea," Organization Science, INFORMS, vol. 14(1), pages 57-68, February.
    22. Tadelis, Steven, 2012. "Public procurement design: Lessons from the private sector," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 297-302.
    23. Kim Loader, 2011. "Are public sector procurement models and practices hindering small and medium suppliers?," Public Money & Management, Taylor & Francis Journals, vol. 31(4), pages 287-294, July.
    24. Eric Prier & Clifford P. McCue & Csaba Csáki, 2021. "Evaluating Decision Speed as a Measure of Public Procurement Performance in the European Single Market," International Journal of Public Administration, Taylor & Francis Journals, vol. 44(13), pages 1065-1075, October.
    25. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    26. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 27-28, January.
    27. Kim Loader, 2007. "The Challenge of Competitive Procurement: Value for Money Versus Small Business Support," Public Money & Management, Taylor & Francis Journals, vol. 27(5), pages 307-314, November.
    28. Jill Juergensen & José Guimón & Rajneesh Narula, 2020. "European SMEs amidst the COVID-19 crisis: assessing impact and policy responses," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 499-510, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Möhring, Niklas & Dalhaus, Tobias & Enjolras, Geoffroy & Finger, Robert, 2020. "Crop insurance and pesticide use in European agriculture," Agricultural Systems, Elsevier, vol. 184(C).
    2. Max Groneck, 2017. "Bequests and Informal Long-Term Care: Evidence from HRS Exit Interviews," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 531-572.
    3. Stefan Boes & Michael Gerfin, 2016. "Does Full Insurance Increase the Demand for Health Care?," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1483-1496, November.
    4. Max Groneck & Frederic Krehl, 2014. "Bequests and Informal Long-Term Care: Evidence from the HRS Exit Interviews," Working Paper Series in Economics 79, University of Cologne, Department of Economics.
    5. Lahiri, Bidisha & Ali, Haider, 2022. "Inspections, informal payments and tax payments by firms," Finance Research Letters, Elsevier, vol. 46(PA).
    6. Kere, Eric Nazindigouba & Choumert, Johanna & Combes Motel, Pascale & Combes, Jean Louis & Santoni, Olivier & Schwartz, Sonia, 2017. "Addressing Contextual and Location Biases in the Assessment of Protected Areas Effectiveness on Deforestation in the Brazilian Amazônia," Ecological Economics, Elsevier, vol. 136(C), pages 148-158.
    7. Hoang, Tuyen Thanh & Nguyen, Cuong Viet & Van Tran, Hoa Thi, 2019. "Are female CEOs more risk averse than male counterparts? Evidence from Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 57-74.
    8. Long Thanh Giang & Cuong Viet Nguyen & Tuyen Quang Tran & Vu Thieu, 2017. "Does Firm Agglomeration Matter to Labor and Education of Local Children? Evidence in Vietnam," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 10(4), pages 1015-1041, December.
    9. Maier, Michael F. & Sprietsma, Maresa, 2016. "Does it pay to move? Returns to regional mobility at the start of the career for tertiary education graduates," ZEW Discussion Papers 16-060, ZEW - Leibniz Centre for European Economic Research.
    10. Jie Wei & Yonghui Zhang, 2022. "Panel Probit Models with Time‐Varying Individual Effects: Reestimating the Effects of Fertility on Female Labour Participation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(4), pages 799-829, August.
    11. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    12. Anderson, Simon & Ciliberto, Federico & Liaukonyte, Jura, 2010. "Getting into Your Head(Ache): The Information Content of Advertising in the Over-the-Counter Analgesics Industry," MPRA Paper 24916, University Library of Munich, Germany.
    13. Hoang, Tuyen Thanh & Nguyen, Cuong Viet & Phung, Tung Duc, 2019. "Do Male CEOs Really Run Firms Better than Female Counterparts? New Evidence from Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 60(2), pages 121-140, December.
    14. Giorgio d'Agostino & Michele Raitano & Margherita Scarlato, 2022. "Job mobility and heterogeneous returns to apprenticeship training in Italy," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 391-423, June.
    15. Nguyen, Cuong, 2012. "Does Urbanization Help Poverty Reduction in Rural Areas?Evidence from a Developing Country," MPRA Paper 48660, University Library of Munich, Germany.
    16. Dang, Hai-Anh H. & Hiraga, Masako & Viet Nguyen, Cuong, 2022. "Childcare and maternal employment: Evidence from Vietnam," World Development, Elsevier, vol. 159(C).
    17. Adetomiwa Kolapo & Akeem Abiade Tijani & Seyi Olalekan Olawuyi, 2024. "Exploring the Role of Farmer-Led Jumpstarting Project on Adoption of Orange-Fleshed Sweet Potato in Nigeria: Implications on Productivity and Poverty," Sustainability, MDPI, vol. 16(16), pages 1-35, August.
    18. Giuseppe Moscelli & Hugh Gravelle & Luigi Siciliani, 2018. "Effects of Market Structure and Patient Choice on Hospital Quality for Planned Patients," School of Economics Discussion Papers 1118, School of Economics, University of Surrey.
    19. Fitzenberger, Bernd & Licklederer, Stefanie & Zwiener, Hanna, 2015. "Mobility across firms and occupations among graduates from apprenticeship," Labour Economics, Elsevier, vol. 34(C), pages 138-151.
    20. O’Brien, James & Do, Phoebe & Edelson, Micaela, 2021. "The effects of fuelwood on children’s schooling in rural Vietnam," Journal of Asian Economics, Elsevier, vol. 72(C).

    More about this item

    Keywords

    Public procurement; SMEs; Public works; Contracts; Dividing contract into lots;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:67:y:2024:i:5:d:10.1007_s00181-024-02615-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.