Exporting Consultancy Services in the Infrastructure Sectors: The Determinants of Obtaining Assignments
27 Pages Posted: 18 Sep 2020
Date Written: November 6, 1998
A unique database on individual tender documents is used to analyze the relationship between strategical factors and outcomes when technical consultancy firms (TCFs) compete for foreign assignments in the infrastructure sectors. TCFs, which sell services based on human capital, have a large focus on developing countries and thereby a high dependence on aid organizations. These organizations claim that technological factors as, e.g., the quality of the technical offers and the skill and experience of the TCFs' employees, are the most important factors when tender documents are evaluated. The results of the estimations show, however, that long-term relations between the TCF and the client - especially whether the TCF has had previous experience of, or has visited, the client - are at least as important as traditional technological factors. Local presence in the form of local offices has also some influence on the outcome.
Keywords: consulting firms, export proposals, procurement, development agencies, long-term relationships, asymmetric information
JEL Classification: F14, L84
Suggested Citation: Suggested Citation