Effectuation is a theory about entrepreneurial problem-solving and management that was first identified by Sarasvathy (2001). Effectual logic has proven to be particularly useful when the company is functioning under the conditions of high uncertainty or goal ambiguity. It is an already widely-studied topic and it has been examined in various contexts, but one field that has completely lacked the attention of the researchers is the business to government context. Our study is focusing on effectuation in business to government context in specific and the aim of our study is to find out (1) how the business to government context influences the application of effectual logic, (2) and what the potential outcomes for innovation are. We used action research to build understanding through a deep involvement with a case organization. Through an experiment involving managers of our case organization, we could find which process is used, and how it relates to the context. Our conclusions show that business to government context sets some limitations to effectual approaches, and we present a framework which represents this effectual process observed in our case organization. In addition, grounded on our previous findings, we analyzed how this practiced process, and the context, set barriers to innovation as well: results such as difficulties to gain pre-commitments, inability to spread risk among stakeholders and difficulty to run pilot projects, are some of the observed findings. On the other hand, we argue that this brought to a focus on incremental innovations, which are new features added to pre-existing products sold to pre-existing clients. At the end of our study we come up with implications for researchers, which could be used to direct future contextual studies regarding effectuation and innovation. But also, some implications for policy makers and managers are presented, so to suggest ways to lower barriers for radical innovation in business to government, and create a more innovative friendly context.

This dissertation begins with a comprehensive examination of the current state of research regarding organizational buying behavior. Through this review we identify a significant gap in our existing knowledge regarding organizational buying behavior in the public sector. Due to the high level of impact that government purchasing has on the economy, and the nuances that differentiate public from private sector purchasing practices, I further explore organizational buying behavior in the public sector to make the following contributions. First, I highlight the common practice in business-to-government (B2G) and business-to-business (B2B) transactions where buyers limit suppliers’ access to them during the buying process. This research terms these buyers “barricaded buyers.” Despite their prominence in practice, research related to barricaded buyers remains virtually non-existent. Therefore, the present research draws on insights gleaned from eight case studies over a period of approximately eighteen months to shed light on this important topic. Second, this dissertation advances a conceptual framework highlighting competitive actions a focal supplier can take to improve its selection likelihood when selling to barricaded buyers. The framework identifies novel ways suppliers can gain advantage by reducing competitive intensity in the pre-barricade phase (e.g., by peacocking) and by enhancing their RFP response quality in the post-barricade phase (e.g., by offering consummate solutions). Importantly, the framework invokes the notion of strategic information disclosure whereby a focal supplier may gain advantage by knowing when to convey what types of information in barricaded buying environments.

This study investigates if a company’s brand identity can be used to influence public authorities in public procurement by possible discretions in the procurement rules, and the importance of this meaning increased business opportunity. The subject of the work, branding in public procurement, is unexplored and may be of interest to a larger market. The study approaches an inductive, explorative, single case study. Literature studies forms a theoretical framework that is combined with interviews with representatives from both public authorities and a company. The study finds that a company can use the part of Brand Identity named Image. To be successful, a company’s image expresses what is important and desired from an authority: security, trust, long-term focus and stability. This reduces the authority’s perceived risk and increases its security, and makes the company a more attractive choice. The study also finds that it is impossible to directly influence an ongoing procurement process. The study is limited to the defense market and procurement of large technical advanced systems, not commodity products. The study focuses on the direct relations between the procuring authority and the tendering industry. It will not discuss the involvement of political forces and their actions, e.g. counter-trade. Possible future research is the following suggestions: Investigation of how political forces have impact on international/ intergovernmental business. This could include the correlation between the size and magnitude of the procurement and political involvement. Investigation of the relationship between the compliance of international procurement rules, the favoring of domestic suppliers, and a nation’s position on Transparency International’s Corruption Perceptions Index. A third extension of this work is to extend its scope to encompass other products or business areas, and make the result more general. The study contributes with knowledge about how branding has influence on public procurement. The result may be of interest to companies, active in the defense market, wanting to increase their competiveness, and for authorities that wish to improve their ability to implement good procurement practices.