Public procurement and business performance in COVID-19 situation: Decline in firms' entry

Morimoto, E and Arai, K (2024) Public procurement and business performance in COVID-19 situation: Decline in firms' entry. International Journal of Construction Management, 24(14), pp. 1589-1598. ISSN 1562-3599

Abstract

This study compares the public procurement and bidding behavior of businesses under the declaration of a state of emergency owing to the spread of COVID-19 with the procurement trends in previous years for each local development bureau. The results showed that the trends of both procurers and participants by year did not change significantly compared to those in the past. However, a major problem was found in that the number of participants was decreasing in the districts under the declaration. On the one hand, looking at the trends by district and time period as an effect of this, the trends of participants and the impact on bidding prices after participation were generally considered to have been calm, partly because the policy of flexible response to the situation on the ordering side was clarified. On the other hand, it should be noted that this phenomenon of entry may lead to a decrease in productivity through less stimulus for innovation. The economic situation is still in a state of hibernation even in mid-2021. In particular, large-size construction businesses have the flexibility to respond to this situation. Consequently, this cohort study can provide an opportunity for causal inferences.

Item Type: Article
Uncontrolled Keywords: bid; business behavior; Japan; public procurement
Index terms: bidding, business performance, Japan, COVID-19, local development, productivity
Subjects: urban design, Geography, health risk and incident analysis, management, performance measurement, bidding
Topics: Geographical Context, Business Strategy, Health and Safety, Procurement, Quality Management, Urban Studies
Descriptive scope: 2 PC

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here