SMEs' market orientation toward public sector customers in public procurement
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CitationSaastamoinen, Jani. Reijonen, Helen. Tammi, Timo. (2020). SMEs' market orientation toward public sector customers in public procurement. International journal of public sector management, 34 (1) , 1-16. 10.1108/IJPSM-05-2020-0131.
This paper investigates how the market orientation of SMEs toward public sector customers enables firms to participate and succeed in public procurement.
The authors used a survey-based methodology. First, the authors reconfigured an empirical construct of market orientation for private sector markets to measure the market orientation toward public sector customers. Then they conducted a survey of Finnish firms to test the construct and how it predicted firm performance in public procurement.
The authors find empirical support for firms to adopt a market orientation toward public sector customers. Their results suggest that customer and competitor orientations are positive predictors of participating and winning supply contracts in public sector tenders.
Self-reported survey data from a single country may limit the generalizability of results.
This paper is the first to report a market orientation toward public sector customers and describe how it is related to supplier performance in public procurement.