Understanding the Innovation Diffusion in the Public Procurement Process in Finland
Peddamudium, Mallikarjun (2023)
2023
Master's Programme in Industrial Engineering and Management
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
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Hyväksymispäivämäärä
2023-11-20
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202311089497
https://urn.fi/URN:NBN:fi:tuni-202311089497
Tiivistelmä
Within the public sector, there is a rising interest in enhancing the efficiency of public procurement. In order to address this interest, one strategy is to establish and refine the public procurement process practices through innovation. However, since the concept of innovation being new there has been very little information known to successfully administer the induction of innovation.
This master’s thesis aim is to identify the scope of diffusing the innovation into the public procurement process in Finland and identify the challenges that arises during the induction of innovation.
The study follows a three step approach: First it begins with the literature review, it explores prior academic research on public procurement process, types of innovation, its scope and challenges. In the next step comes the empirical study, where it contains the interviews with the procurement delegates from the public organizations. The findings from these interviews are then examined. Finally, a synthesis of integration of theoretical knowledge and empirical data offers the fresh insights to this research topic.
The study highlights that the scope of innovation is high in Finland due to the government involvement in the policies making. Since most of the services in Finland being carried out by the public institutes it is easy to induce innovation into the public procurement process. Innovation is divided into three categories: Public Procurement of Innovation (PPoI), Public Procurement for Innovation (PPfI) and Innovative Public Procurement (IPP). The risks portfolio is categorized based on the nature of the risks.
The quantitative interview supports the literature study with the interviewee's perspectives from their practical knowledge and real time experiences. The analysis suggests that the entire public procurement in Finland can be categorized under the three types of innovation based on the nature of procurement. The challenges are also identified by categorizing them under each of these categories. There were few new challenges were also listed besides the ones mentioned in the literature review.
This master’s thesis aim is to identify the scope of diffusing the innovation into the public procurement process in Finland and identify the challenges that arises during the induction of innovation.
The study follows a three step approach: First it begins with the literature review, it explores prior academic research on public procurement process, types of innovation, its scope and challenges. In the next step comes the empirical study, where it contains the interviews with the procurement delegates from the public organizations. The findings from these interviews are then examined. Finally, a synthesis of integration of theoretical knowledge and empirical data offers the fresh insights to this research topic.
The study highlights that the scope of innovation is high in Finland due to the government involvement in the policies making. Since most of the services in Finland being carried out by the public institutes it is easy to induce innovation into the public procurement process. Innovation is divided into three categories: Public Procurement of Innovation (PPoI), Public Procurement for Innovation (PPfI) and Innovative Public Procurement (IPP). The risks portfolio is categorized based on the nature of the risks.
The quantitative interview supports the literature study with the interviewee's perspectives from their practical knowledge and real time experiences. The analysis suggests that the entire public procurement in Finland can be categorized under the three types of innovation based on the nature of procurement. The challenges are also identified by categorizing them under each of these categories. There were few new challenges were also listed besides the ones mentioned in the literature review.