Apa, R and Sedita, S R (2017) How (do) internal capabilities and the geography of business networks shape the performance of contractors in public procurement tenders? Evidence from the construction industry. Construction Management and Economics, 35(7), pp. 404-419. ISSN 01446193
Abstract
Public procurement tenders (PPTs) represent one of the largest sources of income for construction companies; the identification of factors that could favour the winning of these projects becomes more and more interesting. Our work aims to explore how firm-specific capabilities (project management, project administration and innovation) and the geography of its business network shape the success of contractors in winning PPTs, measured as the average value of projects won by the firms. We propose an empirical study of contractors involved in public procurement projects in the construction industry in three Italian regions from 2008 to 2012 employing a fuzzy set qualitative comparative analysis. This methodology allows analysing how different combinations of causal conditions contribute to an outcome. Our research highlights that there are three successful strategies for firms attempting to obtain high-value PPT projects: (1) invest in high-level project management capabilities, engage in business networks with distant clients and intensify innovation capacity; (2) invest in high-level project administration capabilities, engage in business networks with local clients and suppliers (within 100 km), report a large number of certifications and show a high innovation capacity; and (3) invest in growth strategies to increase the size of the company.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction industry; fuzzy set; project management; public sector procurement |
| Index terms: | fuzzy set, project management, project administration, construction industry, income, empirical study, construction company, strategy, qualitative comparative analysis, certification, high-value, public sector procurement, evidence, methodology |
| Subjects: | economic analysis, contractual arrangements, administration, organization, evaluation and assessment methods, industry analysis, administrative processes, decision-making and optimization, project management theory and practice, research methods, management |
| Topics: | Contract Administration, Procurement, Business Strategy, Research Practice, Project Management |
| Descriptive scope: | 4 PCTA |
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