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All content in this area was uploaded by Wendy van der Valk on Feb 16, 2018
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Lessons in Procuring Complex Services
... This process is closely related to whatHenneberg et al. (2009)call a relational value strategy characterised by collaborative interactions between dyadic exchange partners. The interaction between buyer and supplier intensifies at each transition stage because with the increase of performance and infrastructural complexity the service delivery of both organisations becomes more interdependent (Van derValk and Wynstra, 2010). In our cases, the agencies increased their focus on operating the road network and providing services to users (e.g. ...
Purpose
– The paper analyses how public buyers transition from procuring single products and services to procuring complex performance (PCP). The aim is to examine the change in the interactions between buyer and supplier, the emergence of value co-creation and the capability development during the transition process.
Design/methodology/approach
– A multiple, longitudinal case study method is used to examine the transition towards PCP. The study deploys rich qualitative data sets by combining semi-structured interviews, focus group meetings and organisational reports and documents.
Findings
– The transition towards PCP can be best described as a learning process which cumulates the knowledge and experience in the client-supplier interaction accompanied by changing contractual and relational capabilities. In public infrastructure this process is not initially motivated by the benefits of value co-creation, but is politically driven.
Practical implications
– The study proposes three generic transition stages towards increased performance and infrastructural complexity moderated by contract duration. These stages may help managers of public agencies to identify the current procurement level and the contractual and relational challenges they need to master when facing higher levels of performance and infrastructural complexity.
Originality/value
– The study adds to the limited empirical and conceptual understanding on the nature of long-term public-private interactions in PCP. It contributes through a rare focus adopting a longitudinal perspective on these interactions in the transition towards PCP.
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