Browsing by Author "Patajoki, Ulla"
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Item Humanitaarisen logistiikan haasteet ja ongelmat(2010) Patajoki, Ulla; Hinkka, Ville; Informaatio- ja luonnontieteiden tiedekunta; Immonen, StinaItem Towards a successful contractual relationship - Public service procurement from a small business perspective(2013) Patajoki, Ulla; Koskelainen, Katja; Perustieteiden korkeakoulu; Perustieteiden korkeakoulu; School of Science; Smeds, RiittaThe share of small-and medium-sized enterprises (SMEs) in public procurement lags behind their actual economic role. Both SMEs and large organizations face challenges in public procurement but often small businesses' resources are scarcer and they experience greater difficulties. SMEs' more active participation in public procurement could increase competition, encourage innovativeness, contribute to job creation and economic development, and lead to better public services. The aim of this thesis is to find out why it may be challenging for SMEs to become suppliers for the public sector and what factors promote SMEs' participation and success in public procurement. The study also defines the concept of a successful contractual relationship in the context of public service procurement. The majority of the empirical material was gathered in a case study which was conducted in collaboration with a large Finnish municipality. Data collection and analysis methods are qualitative, including interviews, observations of group discussions, and textual analysis. Both procurer representatives and suppliers were included. The public procurement process is studied through its three phases: planning, tendering, and contract implementation and follow-up. Based on both theoretical and empirical findings of the study, the success of a contractual relationship consists of two dimensions: relationship value and relationship quality. Due to legislation and different environments, the formation of successful contractual relationship seems to be more challenging in the context of public procurement than in the private sector. The planning and tendering phases are extremely important for the success of a contractual relationship. Also the quality of contracts and tendering documents may indicate the success of a relationship. Knowledge sharing is the major enabler of successful relationship and it is needed in all phases of the procurement process. Challenges that SMEs face in public procurement remain the same in all industries and it seems that problems are related to the structures and procedures rather than to specific substances. There seems to be no fundamental hindrances to SME participation in public procurement as long as contract sizes remain moderate. What is needed is an active role of companies as well as reciprocal knowledge sharing and interaction in all phases of the public procurement process.