Abstract
In the public tender processes of large international contracts, the organizational legitimacy is considered a prerequisite to limit the risk of engagement with companies that do not have it. The instrument usually used by the contracting parties is the Pre-qualification Questionnaire, which acts as a real entry barrier for contractors to participate in subsequent tenders. In this research we analyze the legitimacy requirement in tender processes. We focus on large contracts, mainly for the public sector but not limited to, based on documents accessible through public digital media. The research defines and provides content to the variables that shape the different legitimacy sorts required to the organizations to participate in large construction and trade tenders. The results suggest that the legitimacy requirements to the bidders are multidimensional, which entails that to participate in public tenders several legitimacy dimensions are evaluated. The weight of the different kinds of legitimacy in relation to the legitimacy global requirements is also analyzed.
Highlights
One of the most common procedures to contract projects and/or building works, as well as products and services acquisition, is a tender system
If an organization does not comply with the laws under coercion, what could be its behavior with the contracting party who cannot directly exercise coercion? We found 5 concepts especially sought by the contracting parties
Cognitive legitimacy What is it that makes a company understandable, allowing to assign an identity? We found in the Pre-Qualification Questionnaire (PQQ) four major issues that together help to get a general image of the organization: Financial soundness; Industry associations and partner firms; products and services Quality; Brand
Summary
One of the most common procedures to contract projects and/or building works, as well as products and services acquisition, is a tender system. Since most tenders use the bidder legitimacy as a first selection filter, organizational legitimacy is an excellent theoretical framework to improve our understanding about this process In this sense, the objectives of the State or private contracting organizations are multiple. Obtaining companies assessment as members of a familiar and non-problematic category of organizations This way to proceed is aligned with the principle of cognitive economy (Rosch, 1978). It has been suggested recently that the first step to evaluate an organization is to analyze its legitimacy degree and once the filter is overcome, more technical requirements should be evaluated (Bitektine, 2011) In this way, the decision-making process is simplified. Evaluators would initially classify organizations based on certain key characteristics, such as legitimacy, and should select the most attractive organization (e.g., that one with the best technical conditions) of that group (Zuckerman, 1999)
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