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Contractors networks in public procurement projects: The case of the construction industry in the Veneto region

Author

Listed:
  • Silvia Rita Sedita

    (University of Padova)

  • Roberta Apa

    (University of Padova)

Abstract

Our work aims to analyze the inter-organizational relationships of contractors in public procurement projects. We investigate how a firm’s network position affects its performance in public procurement practices, measured as the average value of projects won by the firm. To accomplish this objective, we adopt a social network analysis approach to analyze contractor networks. Our evidence comes from an empirical analysis of the network positions of general contractor firms involved in public procurement projects in the construction industry in the Veneto region from 2008 to 2012. Firm performance is affected by firm partnering practices, which are measured in terms of network centrality indicators. We explore how partnering ability, closeness and brokerage influence firm performance and find that a firm’s partnering ability (i.e., the number of direct firm ties within a public procurement network) is crucial in determining the success of the firm’s public procurement practices. Finally, we propose managerial and policy implications for potential regional development.

Suggested Citation

  • Silvia Rita Sedita & Roberta Apa, "undated". "Contractors networks in public procurement projects: The case of the construction industry in the Veneto region," "Marco Fanno" Working Papers 0193, Dipartimento di Scienze Economiche "Marco Fanno".
    • Handle: RePEc:pad:wpaper:0193
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    References listed on IDEAS

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    Cited by:

    1. Martin Warland, 2016. "What kinds of regional innovation systems occur around federal agencies?," Diskussionsschriften credresearchpaper10, Universitaet Bern, Departement Volkswirtschaft - CRED.

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    More about this item

    Keywords

    construction industry; project organizing; public procurement; social network analysis; firm performance.;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction

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