THEORETICAL FOUNDATIONS OF THE ORGANIZATION OF PUBLIC PROCUREMENT IN THE REGULATION OF THE ECONOMY

Abstract

In the context of climate change as a grand challenge, this article offers insights on market shaping from research on industrial networks and institutional work to the market practice perspective. The purpose of the study is to conceptually integrate policy practices and market practices aimed at coping with climate change using public procurement as a case. We draw upon a conceptual model distinguishing three separate market practice categories: market exchange, market representation, and market normalizing. In expanding the model with policy actors deliberate market shaping activities, we locate institutional work as part of the larger set of normalizing practices. Based on the extended model, we find two concepts worthy to be at the core of the analysis: translation within and between market practice categories, and temporality attributes of institutional work and market actor innovations. In an empirical study, reflecting an on-going abductive research process on market shaping, the article scrutinizes how government institutional work in Sweden can make public procurement contribute to innovations related to market practices. Based on a study of government documents, we formulate three propositions, on translation, temporality and market representation. The study suggests that temporality dimensions in institutional work to develop policy innovations and translation of the innovations to exchange practices affect the intended effects on procurement behavior. It also shows that policy innovations performed by institutional work might be in conflict with established norms to which actors might continue to adhere, requiring added translation efforts, and delaying climate mitigating effects. Based on the empirical observations, the article argues that value chains, as a model for market representation, may have the performative power to shape and reshape markets.