Visits to the Client when Competing for New Consulting Projects

Applied Economics, Vol. 35(14), 1531-41, 2003

22 Pages Posted: 22 Jul 2020

See all articles by Roger Svensson

Roger Svensson

Research Institute of Industrial Economics (IFN)

Date Written: June 21, 2002

Abstract

Consulting firms (CFs) sell services on a project basis to many clients and must therefore continuously tender for new contracts. One frequently used strategy by CFs is to visit the clients in connection to the tenders. The reasons to the visits are: (1) to influence the client in his decision-making (e.g., marketing, bribing); and/or (2) to source information about the project so that a better proposal can be submitted. Using a unique database on individual export proposals submitted to emerging markets, which of these two reasons is the most important is examined empirically. The estimations show that influencing the client dominates as explanation to the visits. Although it is not possible to determine whether this influence takes the form of bribing or marketing, all conditions necessary for bribes to occur are fulfilled.

Keywords: Consulting firms, tenders, bribing, contracts. bargaining

JEL Classification: F14, L84

Suggested Citation

Svensson, Roger, Visits to the Client when Competing for New Consulting Projects (June 21, 2002). Applied Economics, Vol. 35(14), 1531-41, 2003, Available at SSRN: https://ssrn.com/abstract=3632337

Roger Svensson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

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