Internal stakeholders and public procurement performance in the perspective of stakeholders’ and transaction costs theories

ABSTRACT

This paper analyzed the performance of administrative contracts for the provision of services in the light of stakeholder and transaction costs theories. The research identifies the perception of internal stakeholders regarding the multiple objectives in public procurement, particularly how they perceive the influence of bounded rationality, opportunism, uncertainty, and frequency of transactions on the delivery of outsourced services. The propositions of stakeholder theories show that, in addition to the already recognized contracting versus contracting opportunism, there are potential conflicts of interest within the contracting body to prioritize different performance dimensions. As the main impact, integrating stakeholder and transaction costs theories can contribute to a greater understanding of the dynamics and results observed in public contracts, especially in dimensions beyond the reduction of contracted prices.

Keywords:
stakeholders; transaction costs; conflicts; performance; public procurement