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Economic Analysis: Theory and Practice
 

Researching the public procurement system: An analysis of winning organizations

Vol. 19, Iss. 5, MAY 2020

Received: 8 April 2020

Received in revised form: 17 April 2020

Accepted: 27 April 2020

Available online: 28 May 2020

Subject Heading: ANALYSIS OF SOCIAL AND REPUTATIONAL CAPITAL

JEL Classification: L10

Pages: 860–884

https://doi.org/10.24891/ea.19.5.860

Kogdenko V.G. National Research Nuclear University MEPhI, Moscow, Russian Federation
kogdenko7@mail.ru

https://orcid.org/0000-0001-9732-1174

Sanzharov A.A. National Research Nuclear University MEPhI, Moscow, Russian Federation
andrey_san@list.ru

https://orcid.org/0000-0001-8972-9655

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters.
Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes.
Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants.
Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources.
Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.

Keywords: public procurement, reputation, prequalification

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