How do strategic networks influence awarding contract? Evidence from French public procurement

Abstract

PurposeThe purpose of this paper is to study how networks may influence the awarding of a contract. In particular, the authors explore strategic networks originating from cooperative relationships.Design/methodology/approachBased on notices of contracts awarded in the French public sector, the authors identified 10,377 partnership relations within 4,242 strategic alliances. The authors represented the system of relations in a graph. The authors used the networks depicted to measure a set of relational properties and build a structural equation model (partial least squared-path modeling).FindingsThe results highlight two important elements. First, the authors reveal the impact of the strength of weak and strong ties on contract awarding. Second, the authors show that the strength of weak ties is magnified by lead partners.Originality/valueThe findings provide insight into strategic behavior that can influence awarding contract. The authors also provide public principals with new means to improve their partner relations.