Purpose The infrastructure sector significantly influences economic growth and societal development. Procurement organization can therefore shape infrastructure procurement performance over both short and long time horizons. This study aims to examine how four structural variables, centralization (where procurement authority and responsibilities reside), specialization, participation and standardization, shape infrastructure procurement activities within public organizations. Design/methodology/approach The authors conducted a qualitative multiple-case study of nine Finnish municipalities, using 19 semi-structured interviews with infrastructure procurement actors and analysis of municipal strategy documents. Interview data were coded abductively and compared across cases. Findings This study identifies distinct operational and strategic performance effects associated with structural choices in procurement organization. The findings reveal differences in the relevance of structural variables depending on whether operational or strategic goals are pursued. Centralization supports operational procurement process effectiveness (e.g. procedural support and consistency), but it is less consistently linked with strategic performance in infrastructure procurement. By contrast, standardization and participation are closely connected to strategic performance, particularly through life-cycle integration across planning, construction and maintenance. The findings also indicate that structural variables operate through interdependencies rather than in isolation. Social implications The findings offer practical guidance to public infrastructure practitioners by highlighting the importance of structural design choices in procurement. Emphasizing strategic, life-cycle-oriented procurement can benefit public organizations, particularly within the infrastructure domain. Originality/value Research on procurement organization in local government has largely emphasized operational outcomes and centralization choices. This study distinguishes operational versus strategic performance effects of multiple structural variables in municipal infrastructure procurement and highlights participation as central to life-cycle-oriented procurement.

Purpose This study aims to examine how financial reporting quantity and quality relate to government procurement outcomes in Japan. Grounded in transaction cost economics and principal–agent theory, it examines whether disclosure enhances contract success in competitive tenders and whether political connections substitute for formal transparency. Design/methodology/approach Using Japanese procurement data (2020 and 2021), this study uses probit, ordinary least squares, tobit regressions to examine disclosure effects. The dataset comprises 4,955 firm-years of listed companies winning 6,870 central government tenders sourced from JETRO. It distinguishes competitive from non-competitive tenders and conducts sub-sample analyses by political connection. Endogeneity is addressed using instrumental variables and propensity score matching as robustness checks. Findings Firms with greater quantity and higher-quality reporting are more likely to win contracts in competitive tenders. No such effect is found in non-competitive tenders. Political connections weaken the disclosure–procurement link, indicating a substitution effect. These results highlight the role of formal transparency under institutional constraints. Social implications Enhancing financial reporting transparency can improve fairness and efficiency in public procurement by reducing agency costs. The findings underscore the risks posed by political influence, suggesting the need for regulatory reforms. Disclosure-based competition may broaden contract access and strengthen public trust. Originality/value This study offers novel insights by integrating tender competition and political connection into the analysis of financial reporting in public procurement. It extends prior work by demonstrating how institutional context shapes the informational value of disclosure. The findings inform both corporate strategy and procurement reform, advocating transparency in politically influenced contracting environments.

Purpose Social procurement is an innovative policy tool that integrates social values in public procurement, while leveraging the power of public procurement to address complex social problems. This study aims to examine the implementation of social procurement within the Ministry of Health through cross-sector collaboration among public, private and third-sector organizations. Specifically, the objectives were to analyze how the procurement process contributes to social value creation, identify the main enablers of collaboration and analyze the potential for optimizing social value–based procurement policies. Design/methodology/approach This research used a descriptive qualitative approach, using a case study design. The data collection used was a thematic analysis, conducted through semistructured interviews, focus group interviews and participatory observation, involving 16 stakeholders from government, businesses, community organizations and universities. Data collection focused on cross-sector collaboration through in-house procurement (Swakelola) type III and procurement through suppliers that meet the criteria of Domestic Products and Micro and Small Enterprises (MSEs) and Cooperatives. These mechanisms were evaluated for their potential to create social value. Findings The results show that collaboration between the Ministry of Health and nonprofit social organizations in the procurement of health services through in-house procurement type III produces direct social value. Meanwhile, collaboration between the Ministry of Health and private sector organizations in the procurement of affirmative action policies for MSEs, as well as cooperatives that produce domestic products, creates indirect social value. Leadership, regulations, procurement systems and trust emerged as the primary factors supporting the implementation of social procurement. The strategy for optimizing social procurement is driven by collaborative leadership, which creates collaborative procurement governance and generates social value. Research limitations/implications The limitations of this study include the limited scope of data exploration, which only involved key stakeholders from the public sector, namely, the Ministry of Health and several partners from the nonprofit, private and higher education sectors, including the National Public Procurement Agency. The perspectives of beneficiaries of social programs or services have not been considered, despite their significant role in evaluating the resulting social impact. Similarly, other secondary stakeholders, such as academics, civil society organizations and donor agencies, as well as other key stakeholders, including oversight bodies, have not been adequately accommodated. These limitations in stakeholder exploration and analysis need to be addressed in further research involving multiple stakeholders in assessing social procurement. Practical implications This study recommends that leaders actively encourage cross-sector collaboration in procurement and integrate social values into procurement strategies. Procurement regulations promote collaborative governance in the early stages. Meanwhile, third-sector leaders focus on building internal capabilities, engaging sector dialogue, establishing trust and pursuing social goals. Social implications This study discusses broadening cross-sector stakeholders’ understanding of the importance of governments in developing countries creating social value through the procurement of goods and services. Originality/value This study bridges the gap in social procurement literature by examining its application in Indonesia, providing insight into cross-sector collaboration dynamics and offering policy recommendations. The result contributes to both theory and practice by demonstrating the potential for social procurement to achieve sustainable development goals through leadership.

Purpose Sustainable public procurement (SPP) is a significant lever for governments to fulfil Sustainable Development Goal 12.7. Recently, the literature has begun to research how systemic intermediaries can support a transition process toward SPP; however, this process has only been examined qualitatively. The purpose of the study is to provide a first quantitative analysis of such an intermediary by examining a SPP initiative called “pact for sustainable procurement” in Germany. Design/methodology/approach The paper analyses a repeated survey among municipalities in the region over three periods from 2018 to 2022, both among municipalities that joined the pact and those that did not. The paper used chi² tests of independence and a set of logit regressions. Findings The pact, as a bottom-up SPP initiative, had a large, significant and robust effect on the likelihood of municipalities implementing SPP and assuming an SPP role. Furthermore, this paper confirms findings about the importance of top-level commitment, knowledge and organizational culture in implementing SPP, as well as organizational size. Social implications The paper presents findings on how to effectively implement SPP at the municipal level, using a bottom-up approach based on a voluntary agreement among different municipalities in a metropolitan region. Originality/value The paper makes a significant contribution by providing the first quantitative analysis of the effects of systemic intermediaries in implementing SPP. It analyses the case of a bottom-up SPP initiative at the municipal level, which can be emulated, and offers insights into the ongoing discussion about factors in implementing SPP.

Purpose This study aims to determine and prioritize the critical success factors (CSFs) that drive the procurement process of artificial intelligence (AI) systems in the public sector in the Indian context. It addresses the peculiar challenges and exigencies of procurement processes of AI systems in public sector organizations and develops a hierarchical model for guiding policymakers. Design/methodology/approach This study uses a research methodology that includes: identifying potential CSFs through literature review and expert consultations, developing a structural self-interaction matrix and performing cross-impact matrix multiplication applied to classification analysis for classifying CSFs based on driving and dependence powers. The study also uses interpretive structural modelling to establish relationships among these factors. Findings Fourteen CSFs are found in this study, which shape public procurement of AI. These influential factors cut across technical, organizational, regulatory as well as socio-economic aspects. This model is arranged hierarchically to indicate how these identified CSFs fit together thereby providing a roadmap towards successful procurement of AI systems. All other CSFs depend on or are influenced by stakeholders’ coordination and collaboration, which means that it is the most important one. Practical implications The results present a hierarchical model for navigating the intricacies of public sector AI procurement. Consequently, this model may support public organizations to enhance service delivery, optimize resource allocation and improve decision-making processes. It also addresses the need for an organized approach to the procurement of AI systems in developing countries such as India where extant guidelines are either insufficient or non-existent. Implementing these CSFs can result in more efficient, transparent and accountable procurement practices of AI systems, ultimately impacting positively on public service outcomes. Social implications The hierarchical model and classification of CSFs provide an alternative view regarding what entails successful AI systems’ acquisition stressing out particular requirements and obstacles associated with it within developing countries’ public sector agencies. It is in line with achieving sustainable development goals (SDGs) 9 which is industry, innovation and infrastructure and SDG 12 which is responsible consumption and production. Originality/value This study provides a new perspective by developing a comprehensive structured framework for the procurement of AI systems in the public sector. It fills gaps existing in research by offering a structural model on how to increase organization efficiency through the procurement of AI systems. The hierarchical model and classification of CSFs provide an alternative view regarding what entails successful AI acquisition, stressing particular requirements and obstacles associated with it within developing countries’ public sector agencies.

PurposeThere is a global upsurge of regulatory policies and frameworks for the implementation of social value in the procurement of construction works. However, there has not been adequate academic research on the critical drivers for integrating social value in the procurement of construction works. This study, therefore, aims to explore the critical drivers for integrating social value into the procurement of construction works in Ghana.Design/methodology/approachA systematic review of the related literature was conducted to identify 16 critical drivers for integrating social value in the procurement of construction works. A sample of 123 professionals was randomly selected to answer a survey questionnaire on these identified drivers. Data retrieved were analyzed by mean scores, standard deviation and exploratory factor analysis.FindingsThe results indicated that critical drivers for the implementation of social value in construction works can be clustered into two major components, namely, desire for transformation and leadership and entrepreneurial drivers.Social implicationsThis study has implications for public administration and practice in the procurement of infrastructure projects as a vehicle for attaining social objectives. The study represents empirical evidence of the critical drivers that can serve as a catalyst for the implementation of social value in the construction sector. The two major clusters of drivers for the implementation of social value identified by this study have the potential to speed up efforts toward decision-making on the critical drivers that will enhance the implementation of social value in the procurement of construction works for positive social changes in communities where construction works are undertaken.Originality/valueThis study advances the global discourse on social value in construction management literature. The value of the study lies in the identification and discussion of two critical all-encompassing drivers for integrating social value into construction procurement; hence, providing a nuanced understanding of how procurement processes could be enhanced in the built environment.

PurposeThis paper aims to compare the effects of social procurement policies on companies in the Victorian and Scottish construction industries. Scotland and Victoria have led the way in the recent revival of social procurement.Design/methodology/approachSemi-structured interviews were undertaken with 27 organisations and 28 participants who have experience of implementing social procurement policies into the construction industries of both jurisdictions.FindingsFindings contribute important new comparative insights from multiple stakeholder perspectives, into the effects of social procurement policies on firms operating in the construction industries of the two jurisdictions. Findings indicate an increasing awareness of social procurement in the construction industries of both Scotland and Victoria. However, differences in policy design determine the nature and extent of this awareness, the level of empowerment felt by actors and the social impact these new policies have in practice. It is concluded that to maximise the social impact of social procurement policies into major industries like construction, policymakers need to carefully consider supply-side limitations, the political context into which social procurement is being implemented and the way they prescribe what types of social value they want to create and for whom.Social implicationsSuccessful social procurement policy implementation into the construction industry can have significant positive social implications for the communities in which the industry builds due to the large numbers of people it employs and its large multiplier effect into the wider economy.Originality/valueBy investigating the effects of social procurement policies on a cross-section of organisations from across the construction industry supply chain, this international study, contributes new comparative insights to the emerging bodies of research on the impact of public procurement on companies in major industries like construction.

PurposeWhile operational performance is important for a company's competitiveness and profitability, this study claims that procurement may be required to drive operational performance. This study aims to focus on how procurement practices is related to operational performance among selected manufacturing firms.Design/methodology/approachThe model was tested on a sample of 329 manufacturing firms in clothing and textiles, chemicals and plastics, food and beverages processing, wood processing, metal processing and pharmaceutical manufacturing industries in a developing economy.FindingsThe results indicate that firms with higher and optimal level of procurement practices achieve higher levels of operational performance. Regardless of the H1 rationale, this study suggests that increasing procurement techniques has a limit in terms of improving operational performance. This study establishes that extreme level of procurement practices is associated with decreasing operational performance.Practical implicationsThis study calls attention to how managers can guide organizations in refining their procurement strategies and practices; there is the need to strive to strike a balance between diversification and efficiency in procurement.Social implicationsManufacturing firms are often integral parts of local communities. The decisions they make regarding procurement practices can impact the economic health of these communities. Striking a balance between diversification and efficiency can contribute to sustainable business practices that benefit both the company and the local community.Originality/valueAs the main contribution, this study brings the additional perspective that extreme level of procurement practices is associated with decreasing operational performance.

PurposeInfrastructure forms a basis for the operations and sustainability of the modern society. This paper aims to recognize value creation from the infrastructure procurement ecosystem perspective to achieve those goals. The pursuit of enhancing value creation involves an examination of infrastructure procurement challenges, boundaries as well as boundary spanners that facilitate effective knowledge transfer and interaction.Design/methodology/approachThe qualitative study is based on content analysis of 25 thematic interviews. Data was transcribed and coded via Atlas.ti software.FindingsInfrastructure procurement value creation challenges appear complex and related to boundaries that hamper collaboration, coordination and knowledge sharing. Our results show that these boundaries locate within and between different levels of procurement ecosystem. Therefore, value creation in infrastructure procurement requires boundary spanners for leveraging knowledge sharing and interaction. Artifacts, discussion, processes and brokers as identified boundary spanners are strongly nested and interrelated in the industry. Special attention should be given to supporting individuals to act as brokers, since they play the key roles in trust building, culture steering and usage of other boundary spanners.Social implicationsPromoting value creation in infrastructure procurement helps to achieve socio-economic development goals.Originality/valueThis study offers a unique perspective on value creation in the context of infrastructure by adopting an ecosystem lens and examining boundary crossing mechanisms. The results support future development of collaboration and knowledge sharing practices fostering procurement productivity.