This study aims to investigate public procurement efficiency in Armenia as a representative transition economy, with particular attention to its implications for sustainable social development. It addresses a critical paradox whereby extensive digitalization of procurement systems has not translated into commensurate efficiency gains, competition intensity or inclusiveness.
A mixed-methods research design is used, combining documentary analysis, international benchmarking of procurement performance indicators and semi-structured interviews with key stakeholders. The analysis is organized around a three-level governance framework encompassing procedural, organizational and policy dimensions of public procurement.
The results reveal that despite notable progress in e-procurement implementation, significant inefficiencies persist in time-to-award, small and medium-sized enterprise (SME) participation and competitive outcomes. Comparative evidence from transition economies (Georgia and Ukraine) and international best-practice cases (South Korea and Brazil) demonstrates that digitalization alone is insufficient to enhance procurement efficiency in the absence of institutional capacity, regulatory coherence and human capital development.
This study is subject to several limitations. First, the empirical analysis focuses primarily on Armenia, which may limit the generalizability of findings to other transition economies with different institutional contexts. Second, the interview sample size, while sufficient for qualitative saturation, remains limited. Future research could extend the analysis through larger cross-country data sets, longitudinal studies or econometric testing of the strategic procurement enhancement model (SPEM) framework. Despite these limitations, the study provides a robust analytical foundation for comparative research on procurement reform in transition economies.
The study proposes the SPEM, a scalable and policy-oriented framework that integrates five mutually reinforcing components: process re-engineering to streamline procurement cycles; institutional capacity development through systematic training and professionalization; digital governance tools that enhance transparency while ensuring inclusiveness; regulatory coherence to eliminate fragmentation across agencies; and participatory stakeholder engagement to empower civil society and private sector oversight. The model provides actionable guidance for policymakers seeking to design procurement systems that simultaneously improve efficiency, transparency, inclusiveness and sustainable social development in transition economies.
More efficient and transparent public procurement systems have significant social implications for transition economies. By improving competition and reducing discretionary practices, procurement reform can strengthen public trust in government institutions and promote social accountability. Enhanced access for SMEs and regional suppliers supports inclusive economic participation and job creation. Through its emphasis on institutional capacity and stakeholder engagement, the proposed SPEM framework contributes to more equitable procurement outcomes and reinforces the role of public procurement as a tool for sustainable social development.
This paper advances the procurement literature by developing a holistic, context-sensitive model that bridges institutional economics, digital governance and public value theory. By linking empirical evidence with a strategic reform framework, the study offers practical solutions for governments pursuing sustainable and performance-oriented procurement reform.
