Market orientation and smesʼ activity in public sector procurement participation

Abstract

Small and medium enterprises (SMEs) have been found to be under-represented in the awarding of public sector procurement contracts. Currently, very little is known about the strategic and behavioral aspects associated with SMEsʼ participation in public sector procurement. To take a step in filling the gap, we used a conceptual construct known as market orientation (MO). The construct comprises a firmʼs orientation in gathering information on competitors and customers, and using the information to gain competitive advantage. This research found that MO has a positive effect on how active SMEs are in searching information on available requests for tenders and how actively they participate in bidding contests. This work strongly suggests that MO should be taken into account when designing procurement contracts, and MO should be fostered among SMEs.

Citation

Tammi, T., Saastamoinen, J. and Reijonen, H. (2014), "Market orientation and smesʼ activity in public sector procurement participation", Journal of Public Procurement, Vol. 14 No. 3, pp. 304-327. https://doi.org/10.1108/JOPP-14-03-2014-B001