Delivering integrated solutions in the public sector: The unbundling paradox

Jens K. Roehrich, Nigel D. Caldwell

    Research output: Contribution to journalArticle

    Abstract

    The paper analyzes changes in suppliers' organizational structures to deliver integrated solutions by examining the bundling across different project phases with a focus on realizing risk transfer and through-life innovation. A multiple, longitudinal case study method is used to examine changes in integrated solution provision in Public Private Partnerships over a 15-year period. The study deploys rich data sets by combining 108 government reports with 38 interviews. Findings examine organizational transformation and suggest that as a response to the need to be competitive the solutions provider ‘unbundles’ the bundle of integrated solutions by creating sub-units to handle distinct phases. The paper questions whether bundling the different management and procurement phases of a major project into one contract is appropriate. Managers must weigh the transactional cost savings of dealing with a prime contractor against not only the transactional costs of dealing with distinct contractors for individual phases, but also the comparative ability of the two options to deliver.

    Original languageEnglish
    Pages (from-to)995
    Number of pages1007
    JournalIndustrial Marketing Management
    Volume41
    Issue number6
    DOIs
    Publication statusPublished - Aug 2012

    Fingerprint

    Public sector
    Integrated solutions
    Unbundling
    Paradox
    Contractors
    Bundling
    Longitudinal case study
    Government
    Innovation
    Organizational transformation
    Risk transfer
    Organizational structure
    Managers
    Costs
    Public-private partnerships
    Procurement
    Suppliers
    Case study method
    Cost savings

    Keywords

    • Bundling
    • Integrated solutions
    • Customized solutions
    • Organizational transformation
    • Longitudinal case studies

    Cite this

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    Delivering integrated solutions in the public sector: The unbundling paradox. / Roehrich, Jens K.; Caldwell, Nigel D.

    In: Industrial Marketing Management, Vol. 41, No. 6, 08.2012, p. 995.

    Research output: Contribution to journalArticle

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    AU - Caldwell, Nigel D.

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    AB - The paper analyzes changes in suppliers' organizational structures to deliver integrated solutions by examining the bundling across different project phases with a focus on realizing risk transfer and through-life innovation. A multiple, longitudinal case study method is used to examine changes in integrated solution provision in Public Private Partnerships over a 15-year period. The study deploys rich data sets by combining 108 government reports with 38 interviews. Findings examine organizational transformation and suggest that as a response to the need to be competitive the solutions provider ‘unbundles’ the bundle of integrated solutions by creating sub-units to handle distinct phases. The paper questions whether bundling the different management and procurement phases of a major project into one contract is appropriate. Managers must weigh the transactional cost savings of dealing with a prime contractor against not only the transactional costs of dealing with distinct contractors for individual phases, but also the comparative ability of the two options to deliver.

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