Procurement policy and SME participation in public purchasing

Bernard Hoekman; Bedri Kamil Onur Taş

doi:10.1007/s11187-020-00414-z

Procurement policy and SME participation in public purchasing

Bernard Hoekman^*, Bedri Kamil Onur Taş

^*Corresponding author for this work

Economics And Political Sciences

Research output: Contribution to journal › Article › peer-review

18 Citations (Scopus)

Abstract

This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.

Original language	English
Pages (from-to)	383-402
Number of pages	20
Journal	Small Business Economics
Volume	58
Issue number	1
DOIs	https://doi.org/10.1007/s11187-020-00414-z
Publication status	Published - Nov 2 2020

Keywords

Good practice
Lot size
Public procurement
Regulation
SME participation

ASJC Scopus subject areas

General Business,Management and Accounting
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s11187-020-00414-z

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abstract = "This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.",

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note = "Funding Information: We are grateful to four reviewers, Ijaz Nabi, Moussa Saab, Marco Sanfilippo, and Anirudh Shingal, and participants in the 2020 annual conference of the Economic Research Forum for helpful comments on earlier versions. This article draws on work supported by the International Growth Centre under project no. LBN-19056. Funding Information: Open access funding provided by European University Institute - Fiesole within the CRUI-CARE Agreement. Acknowledgments Funding Information: We are grateful to four reviewers, Ijaz Nabi, Moussa Saab, Marco Sanfilippo, and Anirudh Shingal, and participants in the 2020 annual conference of the Economic Research Forum for helpful comments on earlier versions. This article draws on work supported by the International Growth Centre under project no. LBN-19056. Publisher Copyright: {\textcopyright} 2020, The Author(s).",

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doi = "10.1007/s11187-020-00414-z",

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PY - 2020/11/2

Y1 - 2020/11/2

N2 - This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.

AB - This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.

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Procurement policy and SME participation in public purchasing

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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