An Investigation into Design and Performance of Supply Chains for Public Procurement Projects

This study provides new insight into current and emerging supply chain approaches and related power relations deriving from public procurement processes within Local Authorities (LAs). Drawing on a mixed-method empirical research (involving data from LAs across the Yorkshire and Humber region of the United Kingdom) this research examines stakeholder pressures, paying particular attention to principal-agent and dependency relationships between public sector and private companies in public procurement projects. Resource Dependency Theory is used as the theoretical framework to support the study. The paper presents and critically evaluates across a set of dimensions, four models of supply chain archetypes deriving from the implementation public procurement projects. These archetypes identify key stakeholders and determine power relations between main contractors, sub-contractors, government agencies and LAs for the delivery of public sector projects. The research carried out in this paper can inform practice, policy and research in aiding public organizations such as LAs in the design of projects before the procurement stage. Also, the research provides useful insight on how the procurement process can serve as a mechanism for LAs to manage activities of agents in order to achieve a range of objectives.