Expected, Yet Potentially Abrupt Endings: Exploring Buyer-Supplier Relationship Dynamics in the Public Procurement Process

Abstract

From a legal perspective, a contractual relationship and legal bonds between buyer and supplier in the public procurement context are established when the contract is signed. Consequently, a relationship ceases to exist upon termination of the contract. This relationship ending, although possible to foresee, can still be experienced as abrupt. The reason is that even though the legal bonds cease to exist, the relational and social bonds among the organisations and their employees have longer lifespans than a single contract period. Buyer-supplier relationships undergo several phases, during which the intensity of the interaction varies. Drawing on the literature of public procurement and business-to-business relationship development models, this chapter exemplifies how a relationship between a buyer and supplier(s) may develop – or end – during a public procurement process. The aim is to develop a detailed procurement process model that considers the dynamics of buyer-supplier relationships. Taking a comprehensive look at the procurement process and its various phases provides researchers with new research perspectives on buyer-supplier relationships and their dynamics in public procurement contexts. For practitioners, being aware of the possibilities for buyer-supplier interaction during the procurement process may open up new collaboration opportunities, and thereby a potential for developing public services.