Government/business relationships: insights into contract implementation

Public procurement activities have long been treated as a minor subset of industrial or business-to-business buying. Consequently, the literature reports sparse research on the nature of government buying or how commercial firms can successfully market to the government. While this lack of research may not have been critical with respect to traditional public buying, recent procurement reforms and new contracting arrangements suggest our knowledge of business-to-business buying is inadequate with respect to the new environment of public buying and government/business relationships. One important and unique issue is how to handle the relationship with business suppliers during the contract implementation process. This paper proposes a taxonomy of government/business relationships as an organizing framework for understanding the complexities of buyer-seller relationships in government contract implementation. Archival case studies provide illustrations and justification for the taxonomy.