Impact of Policy in Innovating and Transforming Procurement in Infrastructure Projects Managed by Commercial State Owned Enterprises (SOEs)

Abstract

To explore how infrastructure projects in commercial SOEs can achieve the public procurement principles of value for money, efficiency, competitiveness and fairness as stipulated in the preferential procurement policy framework act (PPPFA). An exploratory, qualitative approach was adopted to demonstrate the value that public policies can add in the procurement of products services in infrastructure projects. Data were gathered through documents and analysed using the thematic analysis method. Government interventions through procurement policies have the potential to achieve anticipated results when implemented appropriately. The findings indicate that commercial SOEs with adequate support from the state can utilise mall, medium and micro-enterprises SMMEs to penetrate new markets and leverage on the private sector participation, thereby enhancing entrepreneurial practices and competitive advantage in large infrastructure projects. Preferential treatment policies also have the ability to drive innovation. The study however recommends that close partnerships or relationships with suppliers should be preferred only when the risks outweighs the benefits. This is one of few studies conducted on infrastructure projects in commercial SOEs. The results can therefore only be generalised to similar SOEs. The study has the potential to contribute knowledge in the management of preferential procurement and application of PPPFA in public infrastructure projects managed by commercial SOEs.