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Unveiling dynamic capabilities in public procurement: Myths, realities, and strategic transformation

Author: Ndrecaj, Vera,Tlemsani, Issam,Hashim, Mohamed Ashmel Mohamed
Publisher: Basel: MDPI
Year: 2025
DOI: 10.3390/admsci15040134
Source: https://www.econstor.eu/bitstream/10419/321278/1/admsci-15-00134.pdf
Nd ecaj, Ve a; Tlemsani, Issam; Hashim, Mohamed Ashmel Mohamed
A icle
Un eiling dynamic capabili ies in public p ocu emen :
My hs, eali ies, and s a egic ans o ma ion
Adminis a i e Sciences
P o ided in Coope a ion wi h:
MDPI – Mul idisciplina y Digi al Publishing Ins i u e, Basel
Sugges ed Ci a ion: Nd ecaj, Ve a; Tlemsani, Issam; Hashim, Mohamed Ashmel Mohamed (2025) :
Un eiling dynamic capabili ies in public p ocu emen : My hs, eali ies, and s a egic ans o ma ion,
Adminis a i e Sciences, ISSN 2076-3387, MDPI, Basel, Vol. 15, Iss. 4, pp. 1-21,
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Recei ed: 27 Janua y 2025
Re ised: 24 Ma ch 2025
Accep ed: 25 Ma ch 2025
Published: 3 Ap il 2025
Ci a ion: Nd ecaj, V., Tlemsani, I., &
Mohamed Hashim, M. A. (2025).
Un eiling Dynamic Capabili ies in
Public P ocu emen : My hs, Reali ies,
and S a egic T ans o ma ion.
Adminis a i e Sciences,15(4), 134.
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admsci15040134
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A icle
Un eiling Dynamic Capabili ies in Public P ocu emen : My hs,
Reali ies, and S a egic T ans o ma ion
Ve a Nd ecaj 1,* , Issam Tlemsani 2and Mohamed Ashmel Mohamed Hashim 1
1Ca di School o Managemen Ca di Me opoli an Uni e si y, Llanda Campus, Ca di CF5 2YB, UK;
mmohamedhashim@ca di me .ac.uk
2The Cen e o In e na ional Business, Ga eshead NE8 1AN, UK; [email p o ec ed]g.uk
*Co espondence: nd ecaj@ca di me .ac.uk
Abs ac : This s udy explo es he applica ion o he dynamic capabili ies (DCs) sensing,
seizing, and ans o ming in s a egic public sec o p ocu emen (SPSP) and examines
whe he hese capabili ies ep esen a angible eali y o a concep ual my h. D awing on
quali a i e da a om six Welsh local au ho i ies (WLAs), his esea ch in es iga es he
ex en o which DCs enable o ganiza ions o na iga e complex p ocu emen en i onmen s
and achie e s a egic ans o ma ion. The indings e eal signi ican a ia ions in he
ope a ionaliza ion o DCs. La ge au ho i ies demons a ed obus sensing and seizing
capabili ies, le e aging ma ke in elligence, collabo a i e ini ia i es, and inno a i e p o-
cu emen s a egies o align wi h b oade o ganiza ional objec i es. Con e sely, smalle
au ho i ies aced ins i u ional ba ie s, such as esou ce limi a ions and leade ship u no e ,
which hinde ed hei abili y o implemen and sus ain DCs e ec i ely. While ans o ma i e
ini ia i es, including ca ego y managemen and inno a i e se ice models, we e e iden
in some cases, challenges in leade ship s abili y and cul u al adap abili y limi ed hei
widesp ead applica ion. This s udy highligh s he gap be ween heo e ical amewo ks and
p ac ical implemen a ion, emphasizing he need o ailo ed app oaches o building DCs in
di e se public sec o con ex s. By mapping p ocu emen DCs and p oposing an in eg a ed
concep ual amewo k, his esea ch con ibu es o he li e a u e on s a egic managemen
in public p ocu emen and o e s ac ionable insigh s o policymake s and p ac i ione s.
Fu u e esea ch should explo e DCs in b oade public sec o se ings.
Keywo ds: dynamic capabili ies; public sec o p ocu emen ; pe o mance e ec i eness
1. In oduc ion
The con empo a y socio-economic landscape p esen s a unique challenge o public
sec o o ganiza ions, emphasizing he need o s a egic public p ocu emen (PSP) as a
le e o c ea ing alue beyond me e cos e iciency. Public p ocu emen , in ol ing he
acquisi ion o goods, se ices, and wo ks, has become a c i ical ins umen o ad ancing
social, economic, and en i onmen al goals. Howe e , he sec o is o en cha ac e ized by a
dicho omy: while being equi ed o adhe e o s ingen egula o y amewo ks ha ensu e
ai ness and anspa ency, public p ocu emen mus simul aneously espond o complex
and dynamic challenges (Uya a e al.,2020). Con en ional p ocu emen sys ems ha e
p o en in lexible in esponding o dis up ions such as supply chain c ises, pandemics,
and geopoli ical ensions (Wo ld Bank,2024). This dual p essu e demands a pa adigm
shi om adi ional compliance-d i en p ac ices o s a egic app oaches ha inco po a e
adap abili y, inno a ion, and p oac i e go e nance.
Adm. Sci. 2025,15, 134 h ps://doi.o g/10.3390/admsci15040134
Adm. Sci. 2025,15, 134 2 o 21
Dynamic capabili ies (DCs), an o ganiza ion’s abili y o sense, seize, and ans o m
in esponse o a apidly e ol ing en i onmen , o e a compelling lens o examining and
enhancing PSP p ac ices. Roo ed in he seminal wo k o Teece e al. (1997), he DCs ame-
wo k p o ides a heo e ical ounda ion o unde s anding how o ganiza ions can achie e
sus ained pe o mance by in eg a ing and econ igu ing in e nal and ex e nal esou ces.
While DCs a e ex ensi ely s udied in p i a e sec o con ex s, hei applica ion in he public
sec o emains unde explo ed, pa icula ly conce ning p ocu emen . This gap unde sco es
he no el y o his esea ch: applying and empi ically es ing he DCs amewo k in PSP
o examine i s e icacy and ans o ma i e po en ial. The concep o dynamic capabili ies
o e s a no el solu ion by enabling public p ocu emen agencies o sense, seize, and econ-
igu e p ocu emen s a egies in esponse o ex e nal shocks (
Nd ecaj,2018
;Teece,2023;
Nd ecaj e al.,2023b
). The applica ion o dynamic capabili ies in public p ocu emen ep e-
sen s a pa adigm shi , as i challenges con en ional p ocu emen models ha p io i ize
compliance o e adap abili y (Ka el & Me gel,2023). Unlike p i a e sec o p ocu emen ,
which equen ly le e ages agile and inno a i e sou cing s a egies, public p ocu emen
is o en cons ained by legal, poli ical, and ins i u ional ac o s (Flynn & Da is,2023).
T adi ional public p ocu emen models emphasize compliance, cos educ ion, and s an-
da diza ion, o en a he expense o lexibili y and inno a ion (Flynn & Da is,2017;Adam
& Lindahl,2019). The applica ion o dynamic capabili ies in public p ocu emen challenges
his s a us quo by emphasizing agili y, s a egic lea ning, and esou ce econ igu a ion o
c ea e long- e m alue a he han ocusing solely on sho - e m cos e iciency.
Welsh local au ho i ies (WLAs) se e as a pe inen con ex o his explo a ion. Col-
lec i ely alloca ing o e GBP 6 billion annually in p ocu emen expendi u es, WLAs ha e
he po en ial o in luence socio-economic ou comes signi ican ly. Despi e his po en ial, dis-
pa i ies in o ganiza ional size, capaci y, and s a egic o ien a ion aise ques ions abou he
eadiness and abili y o hese au ho i ies o embed DCs in o hei p ocu emen p ocesses.
This s udy adop s a quali a i e, mul i-case app oach, analyzing six WLAs o in es iga e
he in eg a ion and ope a ionaliza ion o DCs in PSP. I seeks o de e mine whe he he
applica ion o DCs is a p ac ical eali y o emains a heo e ical cons uc in his domain.
The con ibu ions o his pape a e h ee old. Fi s , i ex ends he heo e ical discou se
on DCs by examining hei applicabili y wi hin he public sec o , pa icula ly in PSP. Ex-
is ing s udies ha e la gely concen a ed on he p i a e sec o , ocusing on ma ke -d i en
o ganiza ions, lea ing a signi ican gap in unde s anding how DCs can be le e aged in
egula ed, public con ex s. Second, his s udy de elops and es s a no el concep ual ame-
wo k ha in eg a es he h ee co e clus e s o DCs wi hin he p ocu emen cycle: sensing,
seizing, and ans o ming. This amewo k no only ad ances heo e ical insigh s bu also
se es as a p ac ical ool o public o ganiza ions aiming o enhance hei p ocu emen
s a egies. Finally, he indings con ibu e o he b oade policy discou se by o e ing ac-
ionable ecommenda ions o policymake s and p ac i ione s o build s a egic capabili ies,
imp o e p ocu emen e iciency, and deli e long- e m public alue.
The implica ions o his esea ch a e signi ican . By empi ically demons a ing how
dynamic capabili ies can be in eg a ed in o PSP, his s udy p o ides a oadmap o public
sec o o ganiza ions o ansi ion om eac i e, compliance-o ien ed p ac ices o p oac i e,
s a egy-d i en app oaches. I highligh s how sensing capabili ies enable o ganiza ions o
an icipa e ma ke ends, egula o y shi s, and s akeholde needs; how seizing capabili ies
empowe hem o make in o med decisions, op imize esou ces, and os e inno a ion; and
how ans o ming capabili ies d i e con inuous imp o emen , ensu ing adap abili y in he
ace o e ol ing challenges. These insigh s a e pa icula ly c i ical in he con ex o WLAs,
whe e esou ce cons ain s and bu eauc a ic ine ia o en impede s a egic ans o ma ion.
Adm. Sci. 2025,15, 134 3 o 21
The indings also e eal an impo an dicho omy be ween la ge and smalle local
au ho i ies. La ge au ho i ies end o demons a e g ea e s a egic alignmen , le e aging
DCs o ele a e p ocu emen p ac ices, whe eas smalle au ho i ies o en s uggle due o
limi ed capaci y and a unc ional, a he han s a egic, o ien a ion owa d p ocu emen .
This dispa i y unde sco es he need o ailo ed in e en ions, such as capaci y-building
p og ams, leade ship de elopmen , and collabo a i e p ocu emen models, o b idge he
gap and ensu e equi able ou comes ac oss public sec o en i ies.
This pape is o ganized as ollows: Sec ion 2p o ides a comp ehensi e e iew o
he li e a u e on PSP and DCs, iden i ying key heo e ical ad ancemen s and empi ical
gaps. Sec ion 3ou lines he concep ual amewo k, explo ing he in e play be ween DCs
and PSP p ac ices. Sec ion 4de ails he me hodology, desc ibing he quali a i e mul i-case
app oach and da a collec ion me hods employed. Sec ion 5p esen s he indings, o e ing
insigh s in o he s a egic applica ion o DCs in WLAs. Finally, he pape concludes wi h a
discussion o he heo e ical, p ac ical, and policy implica ions, highligh ing con ibu ions
o he ield and p oposing a enues o u u e esea ch.
In conclusion, his s udy add esses a c i ical gap in he li e a u e by examining he ole
o dynamic capabili ies in s a egic public p ocu emen . I p o ides empi ical e idence and
heo e ical ad ancemen s ha b idge he di ide be ween abs ac concep s and p ac ical
eali ies, ad ancing he s a egic ans o ma ion o public p ocu emen in pu sui o g ea e
e ec i eness and public alue. By demons a ing how DCs can be ope a ionalized in PSP,
his esea ch o e s a pa hway o public o ganiza ions o na iga e complex challenges,
seize oppo uni ies, and achie e sus ainable ou comes.
2. Li e a u e Re iew
2.1. Theo e ical De elopmen and Cha ac e is ics o Dynamic Capabili ies
The concep o dynamic capabili ies (DCs) has eme ged as a cen al pilla in s a egic
managemen li e a u e, o e ing an explana ion o how o ganiza ions achie e and sus ain
compe i i e ad an age in apidly changing en i onmen s. The amewo k is buil a ound
concep s o su icien gene ali y ha can be eadily applied in any o ganiza ional se ing.
A he same ime, i inco po a es se s o mic o- ounda ions ha can be adop ed by p ac i-
ione s as well as by esea che s o add ess speci ic si ua ions (Teece,2023). Fi s in oduced
by Teece e al. (1990), DCs a e de ined as he “ i m’s abili y o in eg a e, build, and econ ig-
u e in e nal and ex e nal compe encies o add ess apidly changing en i onmen s”. Unlike
ope a ional capabili ies, which ocus on e iciency and s abili y, DCs emphasize adap abili y,
lexibili y, and inno a ion, allowing i ms o ealign esou ces and compe encies o mee
new challenges and oppo uni ies (Zah a & Geo ge,2002).
The ea ly heo e ical de elopmen o DCs emphasized hei ole in ola ile and unp e-
dic able en i onmen s, whe e adi ional s a egies may ail o deli e sus ainable ou comes.
Teece and Pisano (1994) a gued ha DCs a e c i ical o i ms ope a ing in indus ies cha -
ac e ized by apid echnological change and globaliza ion. By ocusing on o ganiza ional
lea ning, inno a ion, and s a egic lexibili y, DCs enable i ms o na iga e unce ain y and
main ain a compe i i e edge (Teece e al.,1997;Eisenha d & Ma in,2000).
Howe e , he de elopmen o he DC amewo k has no been wi hou i s challenges.
One o he main c i iques is he ambigui y su ounding i s de ini ions and bounda ies
(Eas e by-Smi h & P ie o,2008). Schola s ha e used a ied e ms such as “abili ies”,
“ ou ines”, “pa e ns”, and “s a egic o ien a ions” o desc ibe DCs, leading o a lack o
consensus (Zollo & Win e ,2002;Win e ,2003). While Teece e al. (1997) ocused on he
p ocesses o sensing, seizing, and ans o ming, o he s ha e expanded he amewo k o
include mic o- ounda ions and con ex -speci ic a ibu es (Hel a e al.,2007).
Adm. Sci. 2025,15, 134 4 o 21
2.2. De ining A ibu es o Dynamic Capabili ies
Eisenha d and Ma in (2000) ca ego ized DCs as p ocesses ha a e eplicable ac oss
i ms bu di e in hei execu ion based on ma ke dynamics. In mode a ely dynamic
ma ke s, DCs a e o en s uc u ed and sys ema ic, while in high- eloci y ma ke s, hey
end o be expe imen al and i e a i e. Amb osini and Bowman (2009) added a esou ce-
based pe spec i e, emphasizing he ole o DCs in c ea ing alue by eshaping esou ce
con igu a ions. This pe spec i e highligh s ha he e ec i eness o DCs depends on hei
alignmen wi h o ganiza ional goals and ex e nal condi ions.
Empi ical s udies suppo he signi ican impac o DCs on o ganiza ional pe o -
mance. Fo example, P ie o e al. (2009) ound ha i ms wi h well-de eloped DCs exhibi
supe io inno a ion capabili ies and ma ke esponsi eness. Simila ly, Sal a o and Re up
(2011) demons a ed ha DCs con ibu e o long- e m adap abili y and compe i i eness
by os e ing con inuous lea ning and esou ce in eg a ion. Table 1summa izes he key
cha ac e is ics o DCs and hei implica ions o o ganiza ional success.
Table 1. Cha ac e is ics o dynamic capabili ies. Sou ce: Au ho s.
Cha ac e is ic Desc ip ion
Agili y and Adap abili y Enables esponsi eness o o ganiza ional and ma ke changes
(Teece,2010,2018a).
Lea ning O ien a ion Facili a es con inuous imp o emen and inno a ion h ough
o ganiza ional lea ning (Mu,2017).
S a egic Flexibili y Allows adap a ion o compe i i e p essu es and eme ging
oppo uni ies (B eznik & Laho nik,2016).
Inno a ion and
En ep eneu ship
D i es en e p ise pe o mance h ough inno a i e p ac ices
(Schoemake e al.,2018).
In eg a ion o Resou ces
Aligns in e nal and ex e nal esou ces o enhanced pe o mance
(Teece,2012;Teece e al.,2016).
S a egic Vision Con ibu es o long- e m planning and compe i i e ad an age
(Teece,2014).
Ma ke Sensing Iden i ies ends, cus ome needs, and compe i i e dynamics
(Teece,2018b;Wa ne & Wäge ,2019).
Risk Managemen Balances isk- aking and mi iga ion in unce ain con ex s
(Amb osini & Bowman,2009).
Rou ine and Adap i e
P ocesses
Combines s abili y wi h adap abili y o op imize pe o mance
(Eisenha d & Ma in,2000).
Long-Te m O ien a ion Focuses on sus ainable ad an ages a he han sho - e m gains
(Teece e al.,1997).
While he p i a e sec o has ex ensi ely applied he DCs amewo k o enhance
compe i i eness, i s adop ion in he public sec o emains limi ed. This gap p o ides
an oppo uni y o explo e how DCs can add ess he unique challenges o public sec o
o ganiza ions (PSOs), such as bu eauc a ic cons ain s, accoun abili y equi emen s, and
esou ce limi a ions (Piening,2013).
2.3. Dynamic Capabili ies in Public P ocu emen : Sensing, Seizing, and T ans o ming
Public sec o p ocu emen (PSP) ep esen s a c i ical unc ion o deli e ing public
se ices, d i ing economic de elopmen , and achie ing social and en i onmen al objec i es.
T adi ionally, PSP has been cha ac e ized by i s compliance-d i en na u e, ocusing on
anspa ency, accoun abili y, and cos e iciency. Howe e , he g owing complexi y o public
se ice deli e y has necessi a ed a shi owa d mo e s a egic and inno a i e app oaches
(Ha ley & Rashman,2018).

Adm. Sci. 2025,15, 134 5 o 21
The applica ion o DCs in PSP o e s a heo e ical amewo k o enhancing s a egic
decision-making and alue c ea ion. The mic o- ounda ions o DCs sensing, seizing, and
ans o ming a e pa icula ly ele an o add essing he dynamic challenges o public
p ocu emen .
2.3.1. Sensing Capabili ies in Public P ocu emen
Sensing capabili ies a e he ounda ion o dynamic capabili ies, enabling o ganiza ions
o iden i y oppo uni ies and h ea s in hei ex e nal en i onmen . In he con ex o
PSP, sensing capabili ies in ol e p oac i e moni o ing o ma ke ends, policy changes,
and s akeholde needs (Ca meli & Tishle ,2004). By ga he ing and analyzing ele an
da a, public o ganiza ions can an icipa e changes and adap hei p ocu emen s a egies
acco dingly (Teece,2007).
E ec i e sensing capabili ies equi e a combina ion o en i onmen al scanning, s ake-
holde engagemen , and ma ke in elligence. Fo example, public p ocu emen eams mus
s ay a uned o shi s in supplie capabili ies, echnological ad ancemen s, and egula o y
equi emen s (Hel a & Pe e a ,2014). By aligning p ocu emen ac i i ies wi h o gani-
za ional goals and policy objec i es, sensing capabili ies ensu e ha public p ocu emen
deli e s alue beyond cos sa ings (Pee & Kankanhalli,2016).
Despi e hei impo ance, he de elopmen o sensing capabili ies in PSOs is o en hin-
de ed by s uc u al and cul u al ba ie s. Bu eauc a ic ine ia, siloed decision making, and
limi ed access o eal- ime in o ma ion a e common challenges (Loade ,2007). Addi ionally,
he emphasis on compliance and isk a e sion may discou age inno a i e app oaches o
sensing (Caldwell e al.,2009).
2.3.2. Seizing Capabili ies in Public P ocu emen
Seizing capabili ies build on he insigh s gained h ough sensing by enabling o ga-
niza ions o ac on iden i ied oppo uni ies. In PSP, seizing capabili ies in ol e esou ce
mobiliza ion, decision making, and he implemen a ion o p ocu emen s a egies. These
capabili ies a e c i ical o achie ing policy goals, os e ing inno a ion, and enhancing
se ice deli e y (B eznik & Laho nik,2016).
Key componen s o seizing capabili ies include supplie selec ion, con ac nego i-
a ion, and isk managemen . By adop ing e idence-based decision-making p ocesses,
public o ganiza ions can op imize p ocu emen ou comes and c ea e alue o s akeholde s
(
Mu,2017
). Fo ins ance, s a egic pa ne ships wi h supplie s can enhance inno a ion and
sus ainabili y in p ocu emen p ac ices (Kay e al.,2018).
Howe e , seizing capabili ies in PSOs a e o en cons ained by esou ce limi a ions,
agmen ed p ocesses, and ins i u ional ine ia (Salge & Ve a,2011). The complexi y o
public p ocu emen egula ions u he complica es decision-making, equi ing a balance
be ween compliance and lexibili y (Haw ysz,2021).
2.3.3. T ans o ming Capabili ies in Public P ocu emen
T ans o ming capabili ies enable o ganiza ions o adap hei s uc u es, p ocesses,
and esou ces o changing en i onmen s. In PSP, hese capabili ies acili a e he adop-
ion o inno a i e p ocu emen models, digi al ans o ma ion, and s akeholde col-
labo a ion (
Kim e al.,2011
). T ans o ming capabili ies a e pa icula ly ele an o ad-
d essing long- e m challenges such as sus ainabili y, inclusi i y, and economic esilience
(Wa ne & Wäge ,2019).
Public o ganiza ions wi h s ong ans o ming capabili ies demons a e a commi men
o con inuous imp o emen and lea ning (Nd ecaj e al.,2023a). Fo example, hey may
implemen pe o mance measu emen amewo ks, os e c oss-sec o pa ne ships, and
le e age digi al echnologies o enhance p ocu emen e iciency (Pede sen,2017). Howe e ,
Adm. Sci. 2025,15, 134 6 o 21
esis ance o change, egula o y cons ain s, and a lack o s a egic ision o en hinde
ans o ma i e e o s in PSOs (Ha ley & Rashman,2018).
2.4. In eg a ing Dynamic Capabili ies in Public Sec o P ocu emen
The in eg a ion o sensing, seizing, and ans o ming capabili ies p o ides a comp e-
hensi e amewo k o enhancing PSP p ac ices. Table 2highligh s he di e ences be ween
adi ional and s a egic app oaches o public p ocu emen , emphasizing he ole o DCs in
os e ing inno a ion and alue c ea ion. Whe eas, Figu e 1p o ides dynamic capabili y
mic o- ounda ions o public sec o p ocu emen con as ing bo h app oaches.
Table 2. Public p ocu emen capabili ies: adi ional s. s a egic app oach. Sou ce: Au ho s.
Mic o-Founda ion T adi ional App oach S a egic App oach
Sensing Focus on compliance and immedia e needs P oac i e ma ke analysis and inno a ion
Seizing T ansac ional decisions E idence-based, alue-d i en s a egies
T ans o ming Inc emen al p ocess imp o emen s O ganiza ional lea ning and ans o ma ion
Figu e 1. Dynamic capabili y mic o- ounda ions o public sec o p ocu emen . Sou ce: Au ho s.
2.5. Implica ions o Policy and P ac ice
The in eg a ion o DCs in o PSP has signi ican implica ions o policy and p ac ice
(Ka el & Mazzuca o,2018). Fi s , i enhances he s a egic o ien a ion o public p ocu emen
by shi ing he ocus om sho - e m cos sa ings o long- e m alue c ea ion. Second,
i p o ides a amewo k o add essing sys emic challenges such as bu eauc a ic igidi y,
esou ce cons ain s, and accoun abili y equi emen s. Thi d, i highligh s he impo ance
o leade ship, collabo a ion, and inno a ion in d i ing p ocu emen ans o ma ion.
Adm. Sci. 2025,15, 134 7 o 21
While he heo e ical po en ial o DCs in PSP is well-es ablished, u he empi ical
esea ch is needed o alida e hei applicabili y in di e se public sec o con ex s. By b idg-
ing he gap be ween heo y and p ac ice, his s udy aims o con ibu e o he e ol ing
discou se on DCs and hei ole in enhancing public p ocu emen .
3. Me hodology
This s udy adop s a quali a i e esea ch me hodology o in es iga e he applica ion o
he dynamic capabili ies (DCs) sensing, seizing, and ans o ming in s a egic public sec o
p ocu emen (SPSP). I also explo es he a ia ions in eadiness o s a egic ans o ma ion
among public sec o en i ies o a ying sizes. The me hodology is d i en by wo cen al
esea ch ques ions: (1) How do DCs acili a e na iga ion h ough complex en i onmen s
wi hin public sec o p ocu emen ? (2) How does eadiness o s a egic ans o ma ion
di e among public sec o en i ies o di e en sizes in hei p ocu emen app oaches?
The use o quali a i e me hods ensu es an in-dep h explo a ion o he con ex ual
and nuanced applica ion o DCs wi hin public sec o o ganiza ions. This me hodological
choice aligns wi h he s udy’s aim o unde s anding eal-wo ld p ocesses and unco e ing
heo e ical insigh s ha can ad ance he discou se on s a egic public p ocu emen .
3.1. Da a Collec ion
To add ess he esea ch ques ions, a mul i-me hod quali a i e app oach was employed.
Da a we e collec ed h ough six case s udies, six ocus g oups, and wel e semi-s uc u ed
in e iews wi h p ocu emen p o essionals, manage s, and heads o p ocu emen . This
iangula ion o da a sou ces ensu es he obus ness and eliabili y o he indings, enabling
he syn hesis o insigh s ac oss di e en pe spec i es (Yin,2014;Saunde s e al.,2023).
By in eg a ing mul iple da a collec ion me hods, his s udy cap u es he complexi y o
DC applica ion and p o ides a comp ehensi e unde s anding o o ganiza ional eadiness
o s a egic ans o ma ion. Each me hod complemen s he o he s, con ibu ing o a holis ic
iew o he phenomena unde in es iga ion.
3.1.1. Case S udies
The case s udy app oach is pa icula ly sui ed o explo a o y esea ch seeking o
unde s and con empo a y phenomena wi hin hei eal-li e con ex (Eisenha d ,1989;
Yin,2014
). This s udy includes six case s udies o Welsh local au ho i ies (WLAs), each
selec ed o e lec a ange o o ganiza ional sizes and p ocu emen s a egies. The case
s udies p o ide de ailed insigh s in o he ope a ionaliza ion o DCs and he a iabili y in
s a egic ans o ma ion eadiness. Each case s udy examines he ollowing aspec s:
1. O ganiza ional s uc u e and p ocu emen s a egies.
2.
The in eg a ion o DCs (sensing, seizing, and ans o ming) in p ocu emen p ocesses.
3. Challenges and enable s o s a egic ans o ma ion.
The selec ion o six Welsh local au ho i ies was unde aken o ensu e a comp ehensi e
ep esen a ion o di e se p ocu emen p ac ices ac oss di e en council s uc u es, inancial
capaci ies, and s a egic app oaches. The chosen au ho i ies e lec a b oad spec um o
p ocu emen s a egies, aligning wi h a ious policy p io i ies such as alue c ea ion,
sus ainabili y, social alue, and egula o y compliance.
The selec ion c i e ia included he ollowing:
1.
Di e si y in expendi u e le els: Councils wi h a ying p ocu emen budge s we e cho-
sen, anging om GBP 98 million o GBP 390 million annually, o cap u e di e ences
in inancial cons ain s and s a egic p ocu emen esponses.
Adm. Sci. 2025,15, 134 8 o 21
2.
S a egic ocus a eas: The au ho i ies ep esen di e en p ocu emen p io i ies, in-
cluding s a egic p ocu emen (CCC1 and CCC2), alue in eg a ion (MCC), alignmen
wi h he Well-being o Fu u e Gene a ions (Wales) Ac 2015 (CCBC), and social- alue-
d i en p ocu emen (PCC and NCC).
3.
Geog aphical ep esen a ion: Councils om di e en egions we e selec ed o ensu e
a balanced iew o p ocu emen p ac ices ac oss Wales.
4.
Alignmen wi h policy objec i es: The councils e lec a ying le els o engagemen
wi h policy amewo ks such as sus ainabili y, isk managemen , and economic g ow h.
5.
S akeholde engagemen : Each council p o ides a unique p ocu emen s uc u e,
ensu ing meaning ul insigh s om ocus g oups and semi-s uc u ed in e iews wi h
p ocu emen p o essionals and senio manage s.
This ca e ully cu a ed selec ion allows o a obus compa a i e analysis o p ocu e-
men challenges and bes p ac ices ac oss di e en local go e nmen se ings in Wales.
Mos impo an ly, i allows a deepe unde s anding o how con ex ual ac o s in luence he
applica ion o DCs. Table 3p o ides an o e iew o he case s udies and he da a cap u e
echniques used.
Table 3. O e iew o he case s udies and da a cap u e echniques.
Case S udies—B ie Desc ip ion and Key Objec i es Six Focus G oups 12 Semi-S uc u ed In e iews
CCC1: This council spends o e GBP 390 million annually,
balancing budge cu s wi h inc easing policy expec a ions.
The ocus is on s a egic p ocu emen and alue c ea ion in
challenging inancial con ex s.
P ocu emen p o essionals
(90 min)
Head o commissioning and
p ocu emen and h ee
p ocu emen manage s
(60 min each)
CCC2: Spending GBP 215 million annually, his council
emphasizes s a egic hinking and sus ainabili y in
p ocu emen p ac ices.
Audi and isk manage ,
ca ego y manage o ice , and
s a egic p ocu emen
manage
S a egic p ocu emen manage
MCC: This council ocuses on in eg a ing alue in o each
s age o he p ocu emen cycle, wi h GBP 98 million annual
expendi u e ac oss di e se supplie s.
P ocu emen s a S a egic p ocu emen manage
CCBC: Spending GBP 251 million annually, his council aligns
p ocu emen wi h cul u al, social, economic, and
en i onmen al objec i es unde he Well-being o Fu u e
Gene a ions (Wales) Ac 2015.
P ocu emen s a Head o p ocu emen and wo
p ocu emen manage s
NCC: Wi h annual spending o GBP 150 million, his council
in eg a es social, economic, and en i onmen al conside a ions
in o p ocu emen .
P ocu emen s a S a egic p ocu emen manage
PCC: Spending GBP 250 million annually, his council
emphasizes social alue, local economic g ow h, and
en i onmen al sus ainabili y.
P ocu emen s a
Lead p ocu emen se ice, isk
managemen manage , and
s a egic managemen manage
The case s udy me hod enables he de elopmen o heo e ical insigh s g ounded in
eal-wo ld p ac ices. D awing om he seminal wo k o Yin (2003,2014), his s udy uses
case s udies o explo e unde - esea ched a eas, such as he applica ion o DCs in public
sec o p ocu emen . This app oach aligns wi h calls o mo e quali a i e esea ch in his
ield (Ospina e al.,2018;Mu phy & Wilson,2022).
3.1.2. Semi-S uc u ed In e iews
Semi-s uc u ed in e iews a e a key componen o da a collec ion s a egies, p o-
iding de ailed, pe sonal pe spec i es on he s a egic in eg a ion o DCs in p ocu emen
p ocesses. This me hod allows o lexibili y, enabling he in e iewe o explo e eme ging
hemes and adap ques ions based on esponden s’ insigh s (B yman,2016;Saunde s e al.,
Adm. Sci. 2025,15, 134 15 o 21
CCBC, while ope a ing wi hin budge limi a ions, ocused on changing o ganiza ional
cul u e and s eng hening p ocu emen compliance. These ans o ma i e e o s highligh
he council’s abili y o main ain quali y ou comes while adap ing o ex e nal challenges.
MCC, despi e i s limi ed capaci y, con ibu ed o o ganiza ional ans o ma ion by
encou aging compliance wi h p ocu emen p ocesses and p o iding p oac i e suppo o
di ec o a es. These e o s highligh he council’s abili y o align esou ce e ec i eness wi h
p ocu emen objec i es.
PCC adop ed a p oac i e app oach o ans o ma ion, shi ing owa ds a commis-
sioning council and emb acing inno a i e se ice models. This s a egy e lec s he coun-
cil’s commi men o challenging adi ional p ac ices and deli e ing sus ainable alue
o esiden s.
NCC, al hough in he ea ly s ages o ans o ma ion, aced challenges ela ed o lead-
e ship s abili y and go e nance. Add essing hese issues will be c i ical o he council o
enhance i s ans o ming capabili ies and align p ocu emen p ac ices wi h
s a egic goals
.
S a egic insigh s: T ans o ming capabili ies in s a egic p ocu emen equi e he
con inuous e inemen o p ocu emen p ac ices, emphasizing inno a ion, knowledge man-
agemen , and cul u al change. As shown in Figu e 4, s a egic p ocu emen ans o ma ion
in ol es no only he adop ion o new s a egies bu also he de elopmen o leade ship
and o ganiza ional cul u e. T adi ional p ocu emen , on he o he hand, ends o ocus on
inc emen al imp o emen s wi hin exis ing amewo ks, limi ing i s po en ial o b oade
o ganiza ional impac .
Figu e 4. S a egic p ocu emen ans o ma ion and highe -o de capabili y equi emen s.
Sou ce: Au ho s.
4.2. Compa a i e Analysis and Implica ions
The indings om he six case s udies unde sco e he impo ance o aligning p o-
cu emen p ac ices wi h dynamic capabili ies o achie e s a egic objec i es. While some
councils, such as CCC1 and PCC, demons a ed ad anced capabili ies ac oss all h ee mic o-
ounda ions, o he s, like NCC, aced signi ican challenges in de eloping and implemen ing
hese capabili ies.

Adm. Sci. 2025,15, 134 16 o 21
The compa a i e analysis highligh s se e al key hemes:
1.
Leade ship and go e nance: E ec i e leade ship is c i ical o os e ing s a egic
alignmen and d i ing p ocu emen ans o ma ion. Councils wi h s able leade ship,
such as CCC1, exhibi ed s onge sensing, seizing, and ans o ming capabili ies
compa ed o hose wi h equen leade ship changes, such as NCC.
2.
S akeholde engagemen : Collabo a i e ela ionships wi h in e nal and ex e nal s ake-
holde s enhance p ocu emen capabili ies by os e ing us , anspa ency, and sha ed
alue c ea ion. Councils like CCBC and CCC2 le e aged s akeholde engagemen o
add ess esou ce cons ain s and achie e s a egic ou comes.
3.
Inno a ion and adap abili y: The abili y o adap p ocu emen p ac ices o changing
con ex s and emb ace inno a ion is essen ial o achie ing long- e m sus ainabili y
goals. PCC’s ocus on commissioning and se ice model inno a ion illus a es he
po en ial o s a egic p ocu emen o d i e o ganiza ional change.
4.
Resou ce cons ain s: Limi ed capaci y and esou ces p esen signi ican challenges
o councils like MCC and NCC. Add essing hese cons ain s h ough a ge ed in-
es men s and collabo a ion can enhance p ocu emen capabili ies and ou comes.
The compa a i e analysis o p ocu emen p ac ices be ween la ge and small local au-
ho i ies e eals dis inc di e ences in hei capabili ies and app oaches. These di e ences
a e summa ized in Table 5below.
Table 5. Dis inc di e ences in WLAs’ capabili ies and app oaches.
Aspec La ge Local Au ho i ies Small Local Au ho i ies
Annual P ocu emen
Expendi u e
Highe budge s, e.g., CCC1 wi h
o e GBP 390 million annually.
Lowe budge s, e.g., MCC wi h
GBP 98 million annually.
Sensing Capabili ies
P oac i e ma ke analysis and
s akeholde engagemen ;
es uc u ing a ound ca ego y
managemen (CM) o align wi h
s a egic goals.
Limi ed capaci y leading o
eac i e app oaches; eliance on
ex e nal ini ia i es and ools o
p omo e compliance.
Seizing Capabili ies
Abili y o capi alize on
oppo uni ies h ough s a egic
pa ne ships and esou ce
alloca ion; emphasis on
alue- o -money ou comes.
Ope a ional ocus wi h
cons ain s in le e aging
oppo uni ies; emphasis on
compliance and main aining
con ac egis e s.
T ans o ming
Capabili ies
S ong leade ship d i ing
inno a ion and alignmen wi h
o ganiza ional objec i es;
p oac i e adap a ion o budge a y
cons ain s.
Challenges due o leade ship
u no e and esou ce limi a ions;
e o s ocused on main aining
exis ing p ocesses wi h
inc emen al imp o emen s.
This analysis unde sco es he need o ailo ed s a egies ha conside he unique
challenges and s eng hs o bo h la ge and small local au ho i ies o enhance hei p ocu e-
men p ac ices and public alue c ea ion. The indings also demons a e ha dynamic
capabili ies play a c ucial ole in enabling s a egic public p ocu emen . While he le el o
capabili y de elopmen a ies ac oss he case s udies, he in eg a ion o sensing, seizing,
and ans o ming capabili ies is essen ial o achie ing o ganiza ional objec i es and de-
li e ing public alue. The analysis highligh s he need o s ong leade ship, s akeholde
engagemen , and a p oac i e app oach o inno a ion and adap abili y. By add essing hese
ac o s, public sec o o ganiza ions can enhance hei p ocu emen p ac ices and con ibu e
o sus ainable de elopmen goals.
Adm. Sci. 2025,15, 134 17 o 21
5. Un eiling Dynamic Capabili ies in S a egic Public Sec o P ocu emen :
A My h o Reali y?
The explo a ion o dynamic capabili ies (DCs) wi hin s a egic public sec o p ocu e-
men (SPSP) p o ides insigh s in o hei applicabili y and e ec i eness. The indings ac oss
six case s udies e eal signi ican a ia ions in he ealiza ion o sensing, seizing, and
ans o ming capabili ies, p omp ing a c i ical e alua ion o whe he DCs in SPSP ep esen
eali y o emain aspi a ional.
5.1. Sensing Capabili ies: B idging Awa eness and Ac ion
Sensing capabili ies enable o ganiza ions o ga he , analyze, and espond o ma ke
ends, egula o y changes, and s akeholde needs (Teece,2007,2018b,2023). The case
s udies demons a ed bo h s eng hs and weaknesses in his a ea:
•
Successes: WLAs like CCC1 and CCBC exhibi ed obus sensing capabili ies h ough
ini ia i es such as es uc u ing p ocu emen unc ions, adop ing ca ego y man-
agemen (CM), and pa icipa ing in collabo a i e p ocu emen e iews. These
e o s aligned hei p ocu emen p ac ices wi h b oade s a egic objec i es and
ex e nal dynamics.
•
Challenges: Con e sely, WLAs such as NCC s uggled wi h e ec i e sensing due
o pa ial CM implemen a ion, leade ship ins abili y, and limi ed esou ces. These
ba ie s hinde ed hei abili y o an icipa e and espond o p ocu emen needs, align-
ing wi h exis ing li e a u e on bu eauc a ic cons ain s and limi ed access o imely
in o ma ion (Flynn & Da is,2017).
While some WLAs demons a ed s ong alignmen be ween heo e ical amewo ks
and p ac ice, o he s exposed gaps in implemen a ion, highligh ing he p ac ical challenges
o le e aging sensing capabili ies consis en ly.
5.2. Seizing Capabili ies: Ac ing on Oppo uni ies
Seizing capabili ies e lec an o ganiza ion’s abili y o ansla e oppo uni ies in o
ac ionable ou comes (Eisenha d & Ma in,2000). The case s udies e ealed mixed esul s:
•
P oac i e examples: WLAs like CCC1 and CCC2 le e aged seizing capabili ies o
d i e p ocu emen ans o ma ion. CCC1 es uc u ed i s p ocu emen unc ion o
align wi h s a egic goals, while CCC2 emb aced collabo a ion wi h Pemb okeshi e o
enhance p ocu emen e iciency and communi y bene i s.
•
Ba ie s: WLAs such as NCC aced limi a ions in le e aging seizing capabili ies due
o budge cons ain s, esou ce sho ages, and o ganiza ional ine ia. These challenges
e lec Uya a’s (2010) asse ion ha esou ce limi a ions hinde s a egic p ocu emen
in he public sec o .
While he heo e ical impo ance o seizing capabili ies is well suppo ed, hei p ac i-
cal ealiza ion emains une en. Challenges such as skill sho ages and limi ed decision-
making agili y o en p e en public sec o en i ies om ully capi alizing on p ocu emen
oppo uni ies.
5.3. T ans o ming Capabili ies: D i ing O ganiza ional Change
T ans o ming capabili ies in ol e econ igu ing esou ces and p ocesses o adap o
changing en i onmen s and achie e long- e m alue (Teece,2007).
•
Exempla y e o s: WLAs such as CCC1 and PCC demons a ed s ong ans o ming
capabili ies h ough inno a i e se ice deli e y models, s akeholde engagemen , and
p ocu emen eam expansions. These ac ions align wi h he li e a u e emphasizing he
impo ance o adap i e esou ce ealloca ion (Pee & Kankanhalli,2016).
Adm. Sci. 2025,15, 134 18 o 21
•
Challenges: O he WLAs, like NCC, s uggled o sus ain ans o ma ion e o s due
o leade ship u no e , cul u al esis ance, and limi ed CM implemen a ion. These
ba ie s echo b oade challenges in public sec o ans o ma ion, whe e igid s uc u es
inhibi sus ained change (Haw ysz,2021).
T ans o ming capabili ies demons a ed he g ea es di e gence be ween heo y and
p ac ice, wi h success ul WLAs showcasing inno a ion while o he s aced signi ican ba ie s.
5.4. Syn hesizing Insigh s: DCs in SPSP—Reali y o My h?
The indings highligh a hyb id eali y: while some WLAs demons a ed e ec i e
applica ion o sensing, seizing, and ans o ming capabili ies, o he s exposed limi a ions
ha unde sco e he gap be ween heo e ical concep s and p ac ical implemen a ion. Key
ac o s in luencing success include he ollowing:
1.
Leade ship: S able, isiona y leade ship p o ed c i ical o os e ing DCs, as seen in
CCC1, while ins abili y in councils like NCC inhibi ed p og ess.
2.
Resou ces: Resou ce cons ain s, including budge s and skill gaps, we e signi ican
ba ie s o DC implemen a ion, aligning wi h Uya a (2010).
3.
Cul u al adap abili y: Councils emb acing inno a ion, such as PCC, we e be e
posi ioned o p ocu emen ans o ma ion han hose esis an o change.
5.5. B idging Theo y and P ac ice
While DCs in SPSP a e no en i ely a my h, hei ull ealiza ion emains inconsis en .
B idging he gap equi es in es men in leade ship de elopmen , esou ce op imiza ion,
and os e ing a cul u e o adap abili y. By add essing hese ac o s, WLAs can enhance
hei dynamic capabili ies and achie e he s a egic po en ial o public sec o p ocu emen .
6. Conclusions
This s udy sough o de e mine whe he he applica ion o dynamic capabili ies (DCs)
wi hin s a egic public sec o p ocu emen (SPSP) is a angible eali y o me ely a concep ual
my h. The indings o e nuanced insigh s in o how DCs a e ope a ionalized ac oss di e en
Welsh local au ho i ies (WLAs) and e eal a ying deg ees o implemen a ion success.
Key indings: La ge WLAs demons a ed s ong sensing capabili ies by aligning p o-
cu emen unc ions wi h s a egic objec i es, le e aging ma ke in elligence, and engaging
in collabo a i e ini ia i es. Howe e , smalle au ho i ies aced ins i u ional ba ie s, such as
limi ed esou ces, equen leade ship changes, and he pa ial implemen a ion o ca ego y
managemen . These challenges hinde hei abili y o sense p ocu emen oppo uni ies
e ec i ely, leading o missed oppo uni ies and subop imal ou comes. Thus, while sensing
capabili ies a e c i ical, hei implemen a ion a ies, wi h smalle au ho i ies s uggling o
achie e compa able ou comes.
Seizing capabili ies we e e iden in la ge WLAs, which unde ook p oac i e p ocu e-
men es uc u ing, emb aced inno a i e s a egies, and engaged in in e -o ganiza ional
collabo a ion. These ac ions highligh hei abili y o ac decisi ely on p ocu emen oppo -
uni ies, e lec ing heo e ical p inciples. Howe e , smalle au ho i ies aced challenges
such as budge cons ain s and skill sho ages, limi ing hei abili y o capi alize on p ocu e-
men oppo uni ies. This dispa i y be ween heo y and p ac ice sugges s po en ial my hs
su ounding he uni e sal applicabili y o seizing capabili ies in public p ocu emen .
T ans o ming capabili ies we e e iden in some WLAs, pa icula ly h ough inno a i e
se ice models, enhanced p ocu emen p ocesses, and he de elopmen o s a egic pa ne -
ships. These ans o ma i e e o s demons a e he po en ial o DCs o d i e o ganiza ional
change and deli e s akeholde alue. Ne e heless, smalle au ho i ies encoun e ed di -
Adm. Sci. 2025,15, 134 19 o 21
icul ies sus aining ans o ma ion due o esou ce cons ain s and leade ship ins abili y,
u he emphasizing he gap be ween heo e ical expec a ions and p ac ical eali ies.
Con ibu ions and implica ions: This s udy con ibu es o he s a egic public man-
agemen li e a u e by mapping he mic o- ounda ions o he DCs sensing, seizing, and
ans o ming wi hin he public sec o con ex . I p o ides empi ical e idence o hei
applica ion in SPSP, o e ing a concep ual amewo k ha in eg a es DCs in o public p o-
cu emen s a egies. This amewo k en iches he unde s anding o s a egic managemen
in public p ocu emen and highligh s he condi ions unde which DCs can h i e.
Fo small local au ho i ies, o e coming p ocu emen challenges equi es a mul i-
ace ed app oach ha combines collabo a i e s a egies, leade ship in es men , and egula-
o y imp o emen s. By os e ing s onge pa ne ships, de eloping skilled p ocu emen
leade s, and op imizing p ocu emen amewo ks, small councils can enhance e iciency,
d i e public alue, and imp o e long- e m sus ainabili y, despi e esou ce cons ain s.
Limi a ions: While his s udy o e s aluable insigh s, i s scope is limi ed by i s
quali a i e me hodology and ela i ely small sample size. The indings a e based on 6 case
s udies ou o 22 WLAs, which may no ully cap u e he di e si y o public p ocu emen
p ac ices ac oss di e en con ex s. Addi ionally, he eliance on in e iews wi h ope a ional-
le el p ocu emen p o essionals, while insigh ul, may no ully e lec he pe spec i es o
senio decision make s. Fu u e esea ch should add ess hese limi a ions by inco po a ing
la ge , mo e di e se samples and combining quali a i e and quan i a i e me hods.
Fu u e esea ch di ec ions: Fu u e esea ch on DCs in public p ocu emen should
explo e hei applica ion ac oss a b oade ange o public sec o o ganiza ions and conduc
longi udinal s udies o assess hei e olu ion o e ime. Ex ending he s udy o DCs
beyond dynamic indus ies o he public sec o , as ad oca ed by Eas e by-Smi h e al.
(2009) and Ba e o (2010), can p o ide a deepe unde s anding o hei po en ial. Fu he
di e en ia ion be ween o dina y and dynamic p ocu emen capabili ies, as sugges ed by
Pablo e al. (2007) and Amb osini and Bowman (2009), wa an s empi ical alida ion o
e ine heo e ical models and enhance hei p ac ical ele ance.
In conclusion, while dynamic capabili ies hold p omise o enhancing s a egic public
p ocu emen , hei ealiza ion depends on o ganiza ional con ex , leade ship s abili y, and
esou ce a ailabili y. B idging he gap be ween heo y and p ac ice will equi e conce ed
e o s o add ess hese challenges and build capaci y ac oss public sec o en i ies.
Au ho Con ibu ions: Concep ualiza ion, V.N., me hodology, V.N.; so wa e, V.N.; alida ion,
M.A.M.H., I.T.; o mal analysis, V.N., M.A.M.H., I.T.; in es iga ion, V.N.; esou ces, V.N.; da a
cu a ion, V.N.; w i ing—o iginal d a p epa a ion, V.N.; w i -ing— e iew and edi ing, I.T., and
M.A.M.H.; isualiza ion, V.N., M.A.M.H., I.T.; p ojec adminis a ion, V.N. All au ho s ha e ead and
ag eed o he published e sion o he manusc ip .
Funding: This esea ch ecei ed no ex e nal unding.
Ins i u ional Re iew Boa d S a emen : No applicable.
In o med Consen S a emen : In o med consen was ob ained om all subjec s in ol ed in he s udy.
Da a A ailabili y S a emen : Da a a e con ained wi hin he a icle.
Con lic s o In e es : The au ho s decla e no con lic o in e es .
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au ho (s) and con ibu o (s) and no o MDPI and/o he edi o (s). MDPI and/o he edi o (s) disclaim esponsibili y o any inju y o
people o p ope y esul ing om any ideas, me hods, ins uc ions o p oduc s e e ed o in he con en .