https://doi.org/10.24928/2024/0100
Whose Game Is It? Do Small and Medium Size Enterprises Win Alliance Contracts?
Eelon Lappalainen1, Aku Hänninen2, Olli Seppänen3, Petri Uusitalo4 & Timo Heiskanen5
1Doctoral Candidate, Department of Civil Engineering, Aalto University, Finland, [email protected], orcid.org/0000-0002-7573-344X2Master of Science, Ideastructura Ltd., Finland, [email protected], orcid.org/0000-0001-9451-2725
3Associate Professor, Department of Civil Engineering, Aalto University, Finland, [email protected], orcid.org/0000-0002-2008-5924
4Postdoctoral Researcher, Department of Civil Engineering, Aalto University, Finland, [email protected], orcid.org/0000-0002-5725-906X
5Master of Science, Diamond Consulting Ltd., Finland, [email protected]
Abstract
This empirical archival study investigates the distribution of alliance contracts (ACs) between small and medium-sized enterprises (SMEs) and large enterprises (LEs). Previous research has identified concerns about ACs in relation to the participation of SMEs in public procurement markets in the construction sector. The aim of this study was to understand how these contracts are distributed in the construction sector and to provide additional information for industry players on ACs. The study analyzed 80 investment alliance projects from 2011 to 2023, demonstrating a decreasing trend in SME participation against an increase in LE involvement. The findings revealed a concentration of ACs among a few LEs, with a significant portion of SMEs not participating in these alliances. While 81 SMEs have engaged in Finnish ACs, this number is small compared to the total number of SMEs in the industry, pointing to an imbalanced contract distribution favoring LEs. The study also noted a steady rise in the relative share of alliances in the overall construction market. This research sheds light on the challenges of asymmetric AC distribution and offers valuable insights for public works procurement bodies, industry consultants, and AC participants and researchers, highlighting the need for balanced contract allocation.
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Reference
Lappalainen, E. , Hänninen, A. , Seppänen, O. , Uusitalo, P. & Heiskanen, T. 2024. Whose Game Is It? Do Small and Medium Size Enterprises Win Alliance Contracts?, Proceedings of the 32nd Annual Conference of the International Group for Lean Construction (IGLC 32) , 583-596. doi.org/10.24928/2024/0100
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