The effects of social procurement policy on companies in the construction industry: an international comparison of Australia and Scotland

Abstract

Purpose: This paper aims to compare the effects of social procurement policies on companies in the Victorian and Scottish construction industries. Scotland and Victoria have led the way in the recent revival of social procurement. Design/methodology/approach: Semi-structured interviews were undertaken with 27 organisations and 28 participants who have experience of implementing social procurement policies into the construction industries of both jurisdictions. Findings: Findings contribute important new comparative insights from multiple stakeholder perspectives, into the effects of social procurement policies on firms operating in the construction industries of the two jurisdictions. Findings indicate an increasing awareness of social procurement in the construction industries of both Scotland and Victoria. However, differences in policy design determine the nature and extent of this awareness, the level of empowerment felt by actors and the social impact these new policies have in practice. It is concluded that to maximise the social impact of social procurement policies into major industries like construction, policymakers need to carefully consider supply-side limitations, the political context into which social procurement is being implemented and the way they prescribe what types of social value they want to create and for whom. Social implications: Successful social procurement policy implementation into the construction industry can have significant positive social implications for the communities in which the industry builds due to the large numbers of people it employs and its large multiplier effect into the wider economy. Originality/value: By investigating the effects of social procurement policies on a cross-section of organisations from across the construction industry supply chain, this international study, contributes new comparative insights to the emerging bodies of research on the impact of public procurement on companies in major industries like construction.