Creating value in infrastructure procurement: a practice-based view

Abstract

Purpose: Public procurement in infrastructure has acute economic, social and environmental impacts. When purchasing and supply management (PSM) practices are understood holistically and implemented effectively, they hold great potential for creating value. This study aims to examine how PSM practices adopted by buyers contribute to multidimensional value creation. Design/methodology/approach: Using informant data from 20 semi-structured interviews, public buyer and supplier perspectives are incorporated to provide a detailed overview of adopted PSM practices and their links to value creation. Findings: The in-depth empirical analysis of PSM practice-value connections from a buyer organization perspective expands the fragmented knowledge on individual PSM practices in infrastructure focused on project-level success. Current practices are primarily aimed at improving procurement process effectiveness; the role of these practices in promoting innovation is also acknowledged. Social implications: The empirical analysis highlights the importance of sharing and harmonizing PSM practices between buyer organizations. This key takeaway encourages buyer organizations, suppliers and policymakers to consider and evaluate the identified practice-value links, enabling improvements in activities, expectations and preconditions for value creation through infrastructure procurement. Originality/value: Existing infrastructure procurement research emphasizes project-level perspectives but often overlooks enduring PSM practices. To the best of the authors’ knowledge, this study is one of the first empirical investigations into value creation through PSM practice adoption in public procurement, advancing practice-based view theory. The findings indicate that PSM practices add organizational value and possess the potential to drive societal benefits, extending impacts beyond the immediate organizational context.