Structuring for success: how organizational design shapes infrastructure procurement performance

Abstract

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.