Dynamic capabilities for SME participation in public procurement

Akenroye, TO; Owens, JD; Elbaz, J; Durowoju, OA

Abstract

Purpose – Although small- and medium-sized enterprises (SMEs) play major roles in most economies in terms
of job creation, innovation and contribution to national income, they are often underrepresented in public
procurement markets. This paper aims to explore how the dynamic capabilities theory can improve SME
participation in public procurement.
Design/methodology/approach – Through a systematic literature review, the paper identifies common
barriers to the effective participation of SMEs in public procurement and explores the applicability of the
dynamic capabilities theory in addressing these barriers.
Findings – A theoretical analysis was conducted to identify possible relationships between the factors
reported in the literature as barriers to SME participation in public procurement and different components of
the dynamic capabilities of firms (i.e. sensing, seizing, reconfiguring and learning). Seven key propositions were
generated to guide future research.
Research limitations/implications – Despite its contributions, this paper is based solely on a systematic
literature review and theoretical analysis. Future studies could use meta-analysis to review multiple studies
relating to the nexus between SMEs and public procurement, hence improving methodological rigour.
Practical implications – The paper contributes to the ongoing debate about whether and how SMEs can
leverage their resources and capabilities to develop self-help strategies to improve participation in public
procurement, an area yet underexplored in the literature.
Originality/value – This is one of the few studies examining the implications of firm-level capabilities of SME
activity in public procurement markets. The findings may be beneficial to SME managers/owners, particularly
regarding firms’ ability to leverage resources and capabilities to participate effectively in public procurement.
Keywords Dynamic capabilities, Resource-based theory, SMEs, Public sector procurement

Citation

Akenroye, T., Owens, J., Elbaz, J., & Durowoju, O. (2020). Dynamic capabilities for SME participation in public procurement. Business Process Management Journal, 26(4), 857-888. https://doi.org/10.1108/bpmj-10-2019-0447

• Journal Article Type: Article
• Acceptance Date: Jan 31, 2020
• Online Publication Date: Mar 22, 2020
• Publication Date: Mar 22, 2020
• Deposit Date: May 13, 2020
• Publicly Available Date: May 13, 2020
• Journal: Business Process Management Journal
• Print ISSN: 1463-7154
• Publisher: Emerald
• Volume: 26
• Issue: 4
• Pages: 857-888
• DOI: https://doi.org/10.1108/bpmj-10-2019-0447
• Publisher URL: https://doi.org/10.1108/BPMJ-10-2019-0447
• Related Public URLs: http://www.emeraldinsight.com/loi/bpmj