The influence of business and political ties on supplier selection decisions: the case of the Nigerian public sector

Extant relevant literature suggests that nonmarket elements such
as social ties are important strategic options that may help organisations
enhance their competitiveness relative to other competitors when bidding for
important supply jobs. However, our current understanding of their effects on
organisational outcomes, especially in public supplier selection decisions in
emerging economies, is far from complete. Using a sample of 342 experienced
senior management team (SMT) members and senior level staff in 40 public
sector organisations in Nigeria, this study examined the relative importance of
business and political ties as sources of advantage and strategic intelligence for
prospective vendors and contractors during strategic supplier selection
decisions. Our findings show that both business and political ties are significant
predictors of supplier selection outcomes, and their relative importance in the
selection outcome is indistinguishable and key to strategic decision making.
Overall, our result suggests that both business and political ties can be utilised
as sources of important resources by supplier firms.