Antecedents and Consequences of Sourcing Strategy Appropriateness in Public Procurement

Abstract

Based on a sample of 350 sourcing professionals, this study examines the antecedents and consequences of sourcing strategy appropriateness in public procurement using structural equation modeling. Requirement criticality, the severity of a bid protest, sufficiency of procurement administrative lead time, and contracting officer authority affect sourcing strategy appropriateness, which, in turn, affects supplier performance and compromised technical evaluation of an offeror’s proposal. This research is the first to explore the appropriateness of sourcing strategy and its impact on public management objectives such as value for money. Based on the findings, theoretical and managerial implications are offered.