Public buying decisions: A framework for buyers and small firms

Purpose: The aim of this paper is to explore the factors that influence buyer decision-making in public procurement. The objective is to better understand the processes and conditions that support different supply arrangements, which maximise SME participation. Design/methodology/approach: The paper uses case study evidence of contract awards across multiple organisational contexts including: a local authority, commercial semi-state, police force, and a tourist agency. Findings: National policy and the role of procurement exerted mixed effects upon the cases. The procurement processes were broadly similar and included cross-functional teams, consideration of trade-offs and market research. Research limitations/implications: The paper highlights the transition of public organisations toward strategic procurement including supplier engagement. Practical implications: This offers buyers a decision support tool that promotes equal opportunities for SME participation, a key goal of EU procurement. The implications for suppliers of each buying decision are also outlined. The concept of practical rationality is used to support the framework. Originality/value: A normative framework of public procurement decision-making is generated from the cases. Buying complexity and supplier engagement are two conditions that support a 2×2 decision framework. The framework extends efficient and central-buying decisions to include adapted and balanced decisions. This range offers buyers a decision support tool that promotes equal opportunities for SME participation, a key goal of EU procurement. The implications for suppliers of each buying decision are discussed.