Research project

Public procurement change: from price-centric mindset to the value creation for the society, Julkisen hankinnan muutos: hintakeskeisyydestä yhteiskunnallisen arvon luontiin (INNOPROCU)

Project Details

Start date: 01/09/2020

End date: 31/08/2024


Academy of Finland


Public procurement can create societal benefits with
effective public services by utilizing the market potential of innovative
suppliers. However, public procurement mainly uses cost- and resource-based
approach, and thus, fails to realize its’ value for society. Hence, new knowledge
is needed of ways how public procurement could apply outcome-based procurement
approach and create value for citizens with innovative private sector suppliers
and capable public procurement. Therefore, the purpose of this project is to support
the change of public procurement
from a short-term, price-centric mindset to an understanding of long-term
benefits of value creating solutions arising from innovative supplier markets. Theoretical
implications are expected to achieve by linking theories utilized in the field
of supply management such as resource-based view and social capital theory with
public procurement and further develop theories (i.e. practice-based view) to
be applied in the new context. The project aims to provide a tested framework
presenting how public procurement and its suppliers can create value for society.
The project gives insights on how to improve the capabilities of public
procurement and the supplier relationship practices of local government
organization in order to reach the long-term value creation.

Last updated on 2022-11-01 at 11:54