Purchaser-Provider Partnerships In The Public Service: Oh No, Not a New 4Ps for Business Networks!

Abstract

This paper describes the initial establishment of a business-to-business network in a novel context – within and around a government department as it implements Purchaser-Provider relationships. A popular reform in public sector management over recent years has been the establishment of internal competition to increase efficiency and effectiveness under a "Purchaser-Provider" model. We applied the International and Industrial Marketing Purchasing (IMP) framework to capture some of the major transitions occurring within and around this organisation. We found the IMP approach useful for capturing the dynamic emerging structures. Just like relationships in private-sector business, Purchaser-Provider tends to operate as a network, with a mix of cooperation and competition, rather than competition alone. The public-sector context is unusual in that the network has been established by moving from an administrative control structure, cooperation alone, rather than from an open market, with competition alone. Implications for further research are raised.