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The purpose of this paper is to show that for frequently procuring public clients: the reasoning behind the use of procurement instruments is a process in its own right that requires managerial and scientific attention; modeling this process contributes to making sensible procurement choices; and managing this process is a relevant factor in the client’s development toward strategic procurement.

A model is developed to conceptualize the reasoning behind procurement instruments. Using this model in a case study, the reasoning behind the evolution of a particular procurement instrument as applied by a public infrastructure management organization is reconstructed.

The case study results show that an initially explicitly formulated set of main reasons for operating a qualification system can implicitly evolve over time into a different set of reasons. From a managerial point of view, explication of implicit reasons is important to both avoid the risk that the real value of the procurement instrument remains undetected as well as properly assess its strategic alignment with higher level strategies. The conceptual model proves to be a useful tool to support that.

Bringing the reasoning behind the use of procurement instruments to the fore, this study explores an area of construction procurement research that is positioned between the disciplines of purchasing and supply management, knowledge management and strategic management.

The development of innovative procurement instruments can be costly and risky. To capitalize on successful innovative instruments, it is essential that these are reused. However, reuse can be problematic in project-based public client organizations. This paper aims to apply the ambidexterity concept of integration mechanisms to examine how such reuse can be facilitated.

An initial framework is developed to conceptualize and contextualize the ambidexterity integration mechanism for the procurement function of a multi-project public client. Concluding that, in this situation, an organizational procedure is an appropriate interpretation of the integration mechanism, a design science project is carried out to develop and implement a procedure in a real-life setting.

Reconstructed reuse patterns confirm the need to have an actionable integration mechanism implemented. Integration, in the sense of drawing benefits from successful one-off innovative procurement instruments, may fail unnoticed if not organized and deliberately managed. The procedure developed in the design science project demonstrates how such integration can be achieved.

Although research on ambidexterity has grown exponentially in the past decade, it is yet to be applied in the field of public procurement. Furthermore, the application of design science research is novel in this field of literature. The paper illustrates how both can help solve a relevant organizational problem.

While the need for strategic alignment in public management has been recognized, there is a lack of conceptual clarity to support its application in practice. Focusing on the specific field of public procurement, this paper clarifies and illustrates how the concept of strategic alignment can be applied when strategizing the public procurement process.

The current literature on strategic alignment in public procurement is critically reviewed to identify ambiguities that hamper its application in practice. Based on this review, an analytical framework is developed that conceptualizes strategic alignment as that between the procurement instruments used in a sourcing project and the corresponding higher-level strategies. The framework is empirically illustrated by applying it in a case study that reconstructs the procurement strategy for an innovation project

Strategic alignment in the public procurement process can be demonstrated by identifying, explicating and logically linking reasoning and trade-off decisions on competing priorities across multiple levels and dimensions of strategy

Although creating alignment between policy and public procurement practice is generally held to be important in the public management literature, it is only discussed on high levels of abstraction. This paper provides clarity by investigating alignment in greater detail.

Since procurement is seen as a crucial element in project success, many methods have been developed to manage this process and many papers written about this issue. A remarkable contribution in this field comes from Dean Kashiwagi who underpins his support for the Performance Information Procurement System (PiPS) with claims of high project performance and client satisfaction. Kashiwagi’s explanation for PiPS’s success is based on a theoretical framework that is related to staff members’ ability to deal appropriately with information by making sound decisions based on more than implicit expectations and tacit experience. This does not, however, provide a fully satisfactory explanation. Our paper provides an overview of perspectives taken from the New Institutional Economics which, we argue, are better able to explain the effects of PiPS. The linking of these ideas to innovative PiPS elements makes it possible to effectively select and apply appropriate PiPS elements within suitable projects in the Dutch construction industry. This will enhance industry performance and should thus be of interest to all stakeholders.

Traditional contracting often leads to claims during construction by contractors, increasing transaction costs for both parties in the form of policing and enforcement costs. Partnering is widely advocated as a governance form to more cooperative relationships between client and contractor. However, partnering requires a significant investment in elaborating a specific procurement approach, and is regarded as inappropriate for small, one-off, less complex projects. Dutch municipal governments are searching for alternative solutions to increase cooperation with contractors and reduce transaction costs by applying immediate post contractual negotiations in traditionally procured projects. We studied four such municipal projects which have shown that immediate post contractual negotiations achieve the effects of partnering despite the initial traditional procurement procedures. These negotiations seem to reduce the transaction costs of traditional procurement making them particularly applicable in smaller projects where high set up costs would not be justifiable due to their limited size, complexity, or cost.

In construction, literature interorganizational cooperation is argued to be an important aspect of construction innovation. From this perspective, several distinct bodies of literature provide relevant insights. In literature on complex product systems (CoPS), it is argued that construction industry is a CoPS industry and that in CoPS industries systems integrators set‐up and coordinate interorganizational innovation. Furthermore, various bodies of literature provide information about factors that affect the success of innovation and interorganizational cooperation. The purpose of this paper is to integrate the findings from these bodies of literature.

To uncover the present state of knowledge about systems integrators, a comprehensive literature review is conducted. Furthermore, the paper analyzes various fields of literature to derive an overview of factors which have been empirically related to the success of innovation and interorganizational cooperation.

First, this paper structures the current knowledge on the role and characteristics of systems integrators. Subsequently, the paper translates this knowledge to the context of construction industry and discusses the basis for classifying a firm as a systems integrator in construction industry. Furthermore, the paper presents a list of relevant success factors derived from literature on new product development, strategic networks and alliances, open innovation, and construction innovation.

By integrating various bodies of literature, this paper provides a solid base for future theory development on how firms achieve interorganizational innovation in construction industry.

The purpose of this article is to explore the ability of a novel psychological theory of how people make decisions, narrative‐based decision theory, to help explain people's decisions about whether to continue investment in a research and development (R&D) project (R&D progress decisions).

The paper applies the new theory to an empirical finding of existing research on R&D progress decisions; the finding that instruction in the sunk cost principle seems to mitigate the sunk cost effect in R&D progress decision‐making.

By interpreting the empirical finding in terms of narrative‐based decision theory, the paper is able to clarify and extend an earlier explanation for the empirical finding. More specifically, by drawing on narrative‐based decision theory the paper is able to provide a more detailed explanation of how the predictor variable (sunk cost) and the moderator variable (instruction in the sunk cost principle) may exert an influence.

Based on the result of the exploration, the authors call for further investigations into narrative‐based decision theory's value in explaining R&D progress decisions, and other management decisions.

Furthermore, the authors call for investigations into how narrative‐based decision theory may help decision‐makers in improving the quality of R&D progress decisions.

Narrative‐based decision theory is a recent theory from the field of naturalistic decision‐making. To the authors' knowledge, this is the first article that, by using an example, illustrates how the theory may help in explaining the findings of empirical research on management decisions.

The purpose of this paper is to provide insights into the reasoning behind the development of new procurement approaches by public sector clients.

A case study approach focuses on a procurement development process by a public sector client. It investigates the reasoning behind various applications of the project alliancing concept in rail infrastructure projects over a period of 15 years. Alliancing applications are singled out and mapped against a number of criteria derived from literature on alliancing. The reasoning behind these applications and their differences are reconstructed from contextual documentation. Theories and concepts from the fields of strategic management and knowledge management literature are used to analyse the results.

The development process seems to be evolutionary rather than deliberately planned. The uncovered variations in alliancing applications can only to a very limited extent be explained by the reconstructed reasoning. This suggests that the applied designs are mostly based on implicit reasoning by individual project teams. From a strategic management perspective, the development pattern resembles the emergent type of strategy formation.

This study offers an initial insight into the reasoning processes behind the (re-)design of procurement approaches within a public sector client organization. A unique feature of this study is that these reasoning processes are explored from the strategy formation perspective that conceptually links the design of new procurement approaches to strategic management theory.

The purpose of this study is to analyse, from the perspective of agency theory, differences between client and contractor in their perceptions of changes in uncertainty and in inclination to opportunistic behaviour while using a performance-based procurement procedure. In agency theory, dealing appropriately with the uncertainty and opportunism that results from information asymmetry is an essential precondition for successful procurement.

The procurement procedure analysed is the Performance Information Procurement System (PiPS). PiPS is a performance-based procurement method that uses historic performance information to select the expected best performing contractor. In a theoretical model, a PiPS is interpreted as a set of contractual and organisational safeguards. Through a survey, based on this model, the perceived effects of the PiPS safeguards for both clients and contractors are investigated.

Both clients and contractors believe that applying PiPS introduces safeguards that reduce transaction uncertainty. The perceived changes in the discouragement to use opportunistic behaviour when using PiPS differ between client and contractor. Clients do not know and contractors are sceptical as to whether applying PiPS discourages opportunistic behaviour. This difference in perceptions can be explained by the often-traditional background of the two parties’ project teams and the existence of information asymmetry.

This is one of the first studies to show that changes in the transaction environment in a performance-based procurement process are perceived differently by the client and the contractor. It is necessary to align the roles of both parties to avoid problems related to opportunistic behaviour.