Abstract

This article investigates how the use of discretion in public–private contracts interplays with transactional complexity in influencing contract renegotiations. Motivations for contract renegotiations may be positive, negative (e.g., opportunistic), or neutral, and we argue that allowing discretion at the award stage may promote a more relational approach to contracting that fosters cooperation and productive adaptation. Using a dataset of 12,189 renegotiated contracts from the Tenders Electronic Daily eProcurement platform—based on European Union public procurement directives—we apply regression analyses and propensity score matching to examine how contracts are awarded and renegotiated. Our findings suggest that contracts awarded with government discretion are associated with renegotiations that are viewed more positively and less likely to be perceived as opportunistic. However, this beneficial role for discretion appears to be mitigated by contract transactional complexity, making this a critical consideration in efforts to improve the governance of provider relationships and increase public value. By integrating insights from incomplete and relational contracting theories, this study contributes to the public administration and management literature by demonstrating how discretion and complexity jointly shape contract renegotiation dynamics, informing governance strategies that balance flexibility and accountability in public procurement.

Resumo

Este artigo explora como a discricionariedade governamental e a complexidade transacional em contratos público-privados influenciam as renegociações contratuais. As renegociações podem ter motivações positivas, negativas (como oportunistas), ou neutras. Argumentamos que permitir discricionariedade na fase de adjudicação (quando o contrato é formalmente atribuído ao vencedor) pode promover uma abordagem mais relacional, incentivando a cooperação e a adaptação produtiva. Utilizando um conjunto de dados com 12.189 contratos renegociados da plataforma de eProcurement Tenders Electronic Daily (TED), baseada nas diretrizes de contratação pública da União Europeia, aplicamos análises de regressão e propensity score matching para examinar como os contratos são concedidos e renegociados. Nossos resultados indicam que contratos com discricionariedade governamental estão associados a renegociações percebidas de forma mais positiva e menos oportunistas. No entanto, o papel benéfico da discricionariedade é mitigado pela complexidade transacional, destacando a importância de considerar esse aspecto ao aprimorar a governança de parcerias privadas e aumentar o valor público. Ao integrar insights das teorias de contratos incompletos e relacionais, este estudo contribui para a literatura em administração pública e gestão ao demonstrar como discricionariedade e complexidade moldam conjuntamente a dinâmica das renegociações contratuais, informando estratégias de governança que equilibram flexibilidade e responsabilidade na contratação pública.

Résumé

Cet article examine comment l’usage de la discrétion dans les contrats public-privé interagit avec la complexité transactionnelle pour influencer les renégociations contractuelles. Les motivations des renégociations peuvent être positives, négatives (par exemple, opportunistes) ou neutres. Nous soutenons que permettre une certaine discrétion à l’étape de l’attribution du contrat peut favoriser une approche plus relationnelle, encourageant la coopération et une adaptation efficace du contrat. En utilisant un ensemble de données comprenant 12189 contrats renégociés issus de la plateforme de passation électronique Tenders Electronic Daily (TED), basée sur les directives européennes en matière de marchés publics, nous proposons une analyse économétrique et un propensity score matching pour examiner comment les contrats sont attribués et renégociés. Nos résultats montrent que les contrats attribués avec discrétion gouvernementale sont associés à des renégociations perçues de manière plus positive et moins susceptibles d’être jugées opportunistes. Cependant, ce rôle bénéfique de la discrétion semble atténué par la complexité transactionnelle des contrats, soulignant l’importance de prendre en compte cet aspect pour améliorer la gouvernance des relations avec les prestataires et accroître la valeur publique. En intégrant les perspectives des théories des contrats relationnels et incomplets, cette étude contribue à la littérature en administration publique et en gestion en démontrant comment discrétion et complexité façonnent conjointement la dynamique des renégociations contractuelles, informant ainsi les stratégies de gouvernance qui équilibrent flexibilité et responsabilité dans la passation des marchés publics.

This article is published and distributed under the terms of the Oxford University Press, Standard Journals Publication Model (https://dbpia.nl.go.kr/pages/standard-publication-reuse-rights)
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