Intermediaries in strategic procurement: opportunities and obstacles for public organizations

Sanna Charlotte Eklund

Journal of Public Budgeting, Accounting & Financial Management, 2025, vol. 37, issue 6, 244-262

Abstract: PurposeThis paper explores how the use of intermediaries in public procurement influences the capacity of public organizations to engage in strategic procurement. Focusing on the consultancy brokerage and medical technology sectors in Sweden, the study explores how intermediaries affect accountability and long-term market dynamics, which are central to achieving strategic goals such as innovation and sustainability.Design/methodology/approachThe study draws on 27 interviews with stakeholders from public sector purchasers, intermediary firms, suppliers and industry organizations. Using contingency theory as an analytical lens, the findings are structured around two strategic dimensions: long-term market effects and accountability.FindingsWhile intermediaries are often introduced to increase efficiency and reduce administrative burden, the study finds that they may in practice undermine strategic procurement and reinforce rigidity of the public sector. Specifically, the use of intermediaries may lead to reduced accountability, limited transparency, weakened supplier competition and missed opportunities for innovation. Rather than fostering strategic goals, intermediary arrangements risk reinforcing inflexible procurement practices and distancing public organizations from supply markets.Originality/valueThis paper contributes with new insights into the possibilities and obstacles for public organizations in working strategically with procurement, in contexts where intermediaries are involved. It shows that these arrangements—if not strategically managed—may inhibit rather than support strategic procurement. The findings underscore the need for public organizations to critically assess how intermediary models align with broader public values and strategic ambitions.

Keywords: Intermediaries; Strategic procurement; Public procurement; Innovation; Competition; Accountability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpbafm:jpbafm-02-2025-0052

DOI: 10.1108/JPBAFM-02-2025-0052

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