Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 508: Exporting Consultancy Services in the Infrastructure Sectors: The Determinants of Obtaining Assignments

Roger Svensson ()
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Roger Svensson: The Research Institute of Industrial Economics, Postal: P O Box 5501, SE-114 85 Stockholm, Sweden

Abstract: 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: Technical consultancy firms; aid organizations; Tender documents; Long-term relations

JEL-codes: F14; L84

Language: English

27 pages, November 15, 1998

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