Contesting the public works domain: examining the factors affecting presence and success of SMES in public procurement

Peter Nemec ()
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Peter Nemec: Technical University of Košice

Empirical Economics, 2024, vol. 67, issue 5, No 8, 2135-2173

Abstract: Abstract This study investigates the effects of procurement tools to support small and medium-sized enterprises (SMEs) in public contracts by analysing contract awards for public works published on Tenders Electronic Daily in 2018–2022. Focusing on dividing contracts into smaller lots, a key feature of the 2014 EU modernised procurement framework, this study’s findings reveal that splitting contracts might not necessarily attract SMEs to bid but increases their chances of winning such contracts. Other factors, such as using open and unrestricted bidding procedures and allowing SMEs to showcase their specialisation by awarding contracts based on the best price-quality ratio, positively affect the SMEs’ bidding. The findings of this study emphasise the importance of thoroughly considering individual contract characteristics and overall procurement settings to accommodate SMEs’ limited resource capacities and foster their performance in the public procurement marketplace.

Keywords: Public procurement; SMEs; Public works; Contracts; Dividing contract into lots (search for similar items in EconPapers)
JEL-codes: H57 L25 O38 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s00181-024-02615-x

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