Public procurement change: from price-centric mindset to the value creation for the society

The purpose of this project is to support the change of public procurement from a short-term, price-centric mindset to an understanding of long-term benefits of value creating solutions arising from innovative supplier markets. It examines the dynamic capabilities of suppliers and public buyers in applying outcome-based procurement approach and in the creation of value for the society. It analyzes the role of social capital in improving the practices in public-private supplier relationships. Mixed-methods approach and abductive reasoning is used supporting both theory building and theory testing. Case contexts are local government organizations operating in social and healthcare sector. The three work packages of this project answer to the need to interconnect the different research areas of public procurement. The project also improves the theoretical foundations of public procurement research by linking it to the established theories used in the field of supply chain management.