Procurement under pressure: shifting governance strategies in turbulent times

Abstract

Organizations in the public sector generally use contractual governance mechanisms to govern buyer–supplier relationships. Little is known about what happens when procurement is put under pressure and which governance strategies are used in such turbulent times. News articles, parliamentary documents, and internal communication regarding the procurement of personal protective equipment during the COVID-19 crisis in the Netherlands were analysed to address this question. The findings show a brief shift from contractual to relational governance, followed by an attempt to return to contractual governance, albeit with different procedures. After the contract closes, limited governance strategies are applied, resulting in ‘laissez-faire’ governance.