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Inducing sustainability innovations through public procurement

Percy, Anton LU and Pietzcker, Amos LU (2022) BUSN09 20221
Department of Business Administration
Abstract
Aim of the study: The study aims to investigate the theoretical gap on how sustainability innovations can be induced through demand-side innovations within public procurement.

Theoretical perspective: This paper utilizes transaction cost economics theory to describe the contractual relationship between PTAs and PTOs within public procurement in the public transport industry. By analyzing barriers and enablers within demand-side innovation, the study describes the dynamics of sustainability innovations within public procurement.

Method: To answer the research question, a qualitative single-case study of public procurement within the Swedish public transport industry is conducted, utilizing an abductive approach. The empirical... (More)
Aim of the study: The study aims to investigate the theoretical gap on how sustainability innovations can be induced through demand-side innovations within public procurement.

Theoretical perspective: This paper utilizes transaction cost economics theory to describe the contractual relationship between PTAs and PTOs within public procurement in the public transport industry. By analyzing barriers and enablers within demand-side innovation, the study describes the dynamics of sustainability innovations within public procurement.

Method: To answer the research question, a qualitative single-case study of public procurement within the Swedish public transport industry is conducted, utilizing an abductive approach. The empirical material was gathered through eleven semi-structured interviews with representatives from PTAs, PTOs and an industry organization, which were examined using thematic analysis.

Empirical analysis: The empirical findings elicited several barriers towards sustainability innovations, namely issues with designing tender documents and including innovation in quality evaluations. Regarding non-economically motivated sustainability innovations, the findings revealed goal conflicts and lack of incentives as barriers with political will acting as an inducing force. Lastly, the empirical material emphasized the importance of close collaboration between PTAs and PTOs to induce sustainability innovations.

Discussions and conclusion: The findings underlined that there is a market failure in the provision of non-economically motivated sustainability innovations which can be addressed by demand-side innovation measures. Within the refined conceptual model, a key insight revolved around the crucial role of quality evaluations in the procurement process around innovation, which was only described marginally in previous research. From a practical perspective, the findings elicited three levers available to managers aiming at inducing sustainability innovations in the procurement process, namely a contractual, relational, and organizational lever. (Less)
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author
Percy, Anton LU and Pietzcker, Amos LU
supervisor
organization
course
BUSN09 20221
year
type
H1 - Master's Degree (One Year)
subject
keywords
Public transport, Demand side innovation, Public procurement, Sustainability innovations
language
English
id
9088616
date added to LUP
2022-07-01 15:35:43
date last changed
2022-07-01 15:35:43
@misc{9088616,
  abstract     = {{Aim of the study: The study aims to investigate the theoretical gap on how sustainability innovations can be induced through demand-side innovations within public procurement. 

Theoretical perspective: This paper utilizes transaction cost economics theory to describe the contractual relationship between PTAs and PTOs within public procurement in the public transport industry. By analyzing barriers and enablers within demand-side innovation, the study describes the dynamics of sustainability innovations within public procurement. 

Method: To answer the research question, a qualitative single-case study of public procurement within the Swedish public transport industry is conducted, utilizing an abductive approach. The empirical material was gathered through eleven semi-structured interviews with representatives from PTAs, PTOs and an industry organization, which were examined using thematic analysis.

Empirical analysis: The empirical findings elicited several barriers towards sustainability innovations, namely issues with designing tender documents and including innovation in quality evaluations. Regarding non-economically motivated sustainability innovations, the findings revealed goal conflicts and lack of incentives as barriers with political will acting as an inducing force. Lastly, the empirical material emphasized the importance of close collaboration between PTAs and PTOs to induce sustainability innovations.

Discussions and conclusion: The findings underlined that there is a market failure in the provision of non-economically motivated sustainability innovations which can be addressed by demand-side innovation measures. Within the refined conceptual model, a key insight revolved around the crucial role of quality evaluations in the procurement process around innovation, which was only described marginally in previous research. From a practical perspective, the findings elicited three levers available to managers aiming at inducing sustainability innovations in the procurement process, namely a contractual, relational, and organizational lever.}},
  author       = {{Percy, Anton and Pietzcker, Amos}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Inducing sustainability innovations through public procurement}},
  year         = {{2022}},
}