University of Twente Student Theses


Improving customer attractiveness and supplier satisfaction in public procurement : A case study

Vilkuna, Valtteri (2023) Improving customer attractiveness and supplier satisfaction in public procurement : A case study.

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Abstract:Due to changing dynamics in business relationships, buying organisations are now increasingly competing for the best and most competent suppliers, who can choose which organisations they want as customers. To secure these suppliers, customers must strive to be attractive, whereas keeping the suppliers and developing the relationships requires keeping the suppliers satisfied. While several means to fulfil these objectives have been identified in the private sector, the issue remains rather unexplored in the context of public procurement. This thesis employs a framework derived from existing literature on the subject, categorising the influencing factors of customer attractiveness and supplier satisfaction based on their nature. A single case study is conducted, with a Finnish social and healthcare services provider as the public case organisation, and interviews to the organisation and its suppliers as the primary data source. Through content analysis, conclusions are drawn about the current state and improvement areas of public procurement, concerning customer attractiveness and supplier satisfaction. While prior literature suggests a relatively weak current state of customer attractiveness and supplier satisfaction in public procurement, the results of this study point out several strengths as well. The highest impact on customer attractiveness is possessed by market growth and economic factors, which belong to the strengths of public procurement, due to factors such as high purchase volumes and demand stability. In terms of supplier satisfaction, the highest impact is factors related to relational behaviour and operative excellence. Although public procurement’s current state is sufficient, further improvement is achievable by increasing focus on aspects such as contact accessibility and effective communication.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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