Public Versus Private Sector Procurement Ethics and Strategy: What Each Sector can Learn from the Other

Abstract

The government purchasing market constitutes the largest business sector in the world. While marketers would benefit from a deep understanding of both sectors, how the two sectors differ in terms of ethics and strategy largely remains unknown. The purpose of this research, therefore, is to explore differences between the for-profit and not-for-profit sectors on two critical aspects of business-to-business procurement, ethics and strategy. Using survey data from a sample of 328 procurement professionals in the for-profit and not-for-profit sectors, key differences are explored. Findings suggest that buyers in the for-profit sector are more likely to behave opportunistically. Conversely, the buyers' leaders in the not-for-profit sector behave more opportunistically and are more willing to turn a blind eye to their subordinate buyers' opportunistic behaviors. Additionally, key differences in procurement strategy are unveiled suggesting that not-for-profit procurement practices have some room for improvement. Based on the findings, theoretical and managerial implications are drawn, and a future research agenda is proposed.

Accountability and Reporting in the Fight against Corruption: Preliminary Evidences from the Italian Setting

“…The magnitude and volume of procurement activities, ambiguity regarding the market value of many of the items being purchased, room for political discretion that characterises a huge number of government actors, and interdependence among political, bureaucratic, and business players make government procurement a key site for corruption (Hawkins et al, 2011;Søreide, 2002;Rose-Ackerman, 1999). As a result, a number of governments have strongly remarked that corruption is a dysfunction of public administration that emerges in the presence of monopoly and discretion, and that contrasting these kinds of problems is a policy priority for the development of communities and to achieve accountability demands.…”

“…The promotion of accountability and transparency has led to extensive reforms, which is known as a key site for corruption (Hawkins, Gravier & Powley, 2011;Søreide, 2002;Rose-Ackerman, 1999). Corruption regulation is featured by growing demand for information to divulge among citizens.…”

The Influence of Human Resource Development on Systemic Practices, Utility, and Organizational Results among Contracting Professionals

“…Organizational results include measurements of employee productivity, efficiency, and overall satisfaction. Limited research exists that explores these facets for contracting professionals in the public and private sectors (Hawkins, Gravier, & Powley, 2011).…”

“…Research that compares public and private sector practices is limited (Hawkins et al, 2011). This study addressed the gap in the literature by examining the influence of HRD on systemic practices, utility and organizational results.…”

“…The study provided information to public and private sector organizations, which the study helps, close a gap that existed in the literature through providing insight into the similarities and differences between the public and private sectors amongst contracting professionals (Hawkins et al, 2011).…”