Comparative Analysis of Supplier Collaboration in Public vs. Private Sectors

Thesis Abstract

This study investigates how supplier collaboration differs between public and private sector procurement systems, addressing persistent concerns about efficiency, innovation, and resilience in supply chains amid rising digitalization and regulatory complexity. The problem centers on whether structural and organizational factors inherent to public sector procurement—such as transparency mandates, risk aversion, and multi-stakeholder accountability—unintentionally constrain collaborative practices that are more prevalent in private sector settings, potentially impacting value creation, supplier development, and overall supply chain performance. The aim is to compare the extent, quality, and outcomes of supplier collaboration across sectors, identify drivers and barriers, and develop a framework to enhance cross-sector collaborative capacity. Specific objectives are (1) to measure the level of supplier collaboration using a composite index that integrates information sharing, joint innovation, risk-sharing, and performance alignment; (2) to examine the influence of institutional factors (regulatory rigor, contract type, and governance quality) on collaboration intensity; (3) to assess the impact of supplier collaboration on procurement performance metrics (cost savings, cycle time, and supplier innovation) within each sector; (4) to explore moderating effects of organizational culture and digital maturity; and (5) to propose context-sensitive practices to improve collaboration across public and private procurement environments. The methodology adopts a cross-sectional comparative design, targeting procurement professionals and supplier managers within 60 public institutions and 60 private firms across a diversified industry spread in a large metropolitan region. Stratified random sampling yields 240 respondents (120 from each sector), supplemented by 40 in-depth interviews with senior procurement leaders to capture contextual nuances. Data are collected via a structured questionnaire validated through content and construct validity checks, pilot-tested with 30 respondents, and complemented by semi-structured interview guides. The instrument measures collaboration dimensions (information sharing, joint problem-solving, co-design, and performance alignment), institutional factors (regulatory stringency, contracting rules, and governance), and performance outcomes (cost reductions, cycle time, supplier-initiated innovations, and quality improvements). Reliability is ensured through Cronbach’s alpha coefficients exceeding 0.80 across scales. Quantitative data are analyzed using descriptive statistics, t-tests for mean differences, and multivariate regression analyses to identify determinants of collaboration and its impact on performance. A hierarchical linear modeling (HLM) approach tests cross-level effects of institutional factors on collaboration outcomes, while propensity score matching (PSM) mitigates selection bias in sectoral comparisons. Qualitative data from interviews are analyzed thematically with a coding framework grounded in the relational and resource-based views, triangulated with survey results to illuminate causal mechanisms and contextual contingencies. Theoretical grounding draws on transaction cost economics and the relational view, with explicit incorporation of the public value governance framework to interpret sector-specific dynamics. Expected findings indicate higher collaboration depth and more frequent joint initiatives in the private sector, driven by flexible contracting, faster decision cycles, and stronger supplier development programs, while public sector collaboration exhibits stronger compliance-driven information sharing but lower alignment on innovative outcomes due to compliance and risk considerations. The study anticipates that digital maturity and organizational culture positively moderate collaboration in both sectors, with digital platforms amplifying information sharing and joint problem-solving. The contribution to knowledge lies in a rigorously comparative, theory-driven understanding of supplier collaboration mechanisms, their outcomes, and the role of sector-specific governance in shaping collaborative capacity. The study aims to produce a practical framework of cross-sector best practices, including policy recommendations for public procurement reforms, contract design that fosters collaboration without compromising accountability, and managerial guidance on building supplier relationships and co-innovation programs. The main conclusion is that while private-sector procurement generally facilitates more robust collaboration and innovation, targeted governance reforms, digital enablement, and culture-shaping initiatives can substantially elevate public sector collaboration, reducing performance gaps and enabling more resilient, value-driven supply networks. Recommendations include adopting hybrid contracting models that incentivize joint outcomes, investing in interoperable information systems, and implementing transparent yet flexible evaluation criteria to balance accountability with collaborative agility. Further research is suggested to explore sector-specific subcontexts (healthcare, infrastructure, and energy) and longitudinal studies to assess causality over time.