Exploring the role of social capital in public procurement

Abstract

Purpose: This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance. Design/methodology/approach: A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance. Findings: The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process. Practical implications: Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement. Social implications: Improving social dynamics and solutions in public procurement. Originality/value: This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.