Socio-economic sourcing: benefits of small business set-asides in public procurement
| Autor: | Michael J. Gravier, Wesley S. Randall, Timothy G. Hawkins |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Government spending
Transaction cost Government Public Administration business.industry 05 social sciences Small business Risk perception Procurement 0502 economics and business Business 050207 economics Set (psychology) 050203 business & management Selection (genetic algorithm) Industrial organization |
| Zdroj: | Journal of Public Procurement. 18:217-239 |
| ISSN: | 1535-0118 |
| Popis: | Purpose Small businesses are critical to economic health and encouraged in government spending by set-asides – annual small business sourcing goals that often are not attained. Little research has explored the negative and risky stigmas associated with small business sourcing. Design/methodology/approach This research explores reduced transaction costs of small business sourcing to government buyers. A survey of 350 government source selections reveals lower transaction costs derived from lower perceived risk of receiving a bid protest and via more efficient source selection processes. Findings Contrary to common bias, the performance level of small businesses is no less than that of large business. Thus, small businesses engender lower transaction costs for correcting supplier’s performance. On the basis of these findings, managerial and theoretical implications are discussed. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|