PhD Defence Steven Borobia | From Market Shaping To Market Stewarding - Governing Markets Through Public Procurement

From Market Shaping To Market Stewarding - Governing Markets Through Public Procurement

Steven Borobia is a PhD student in the Department of Entrepreneurship & Technology Management. (Co)Promotors are prof.dr. L.A. Knight and dr. A.B.J.M. Wijnhoven from the Faculty of Behavioural, Management and Social Sciences and dr. F.F.G.S. vos from the Portland State University.

Public procurement plays an important role in shaping markets, yet it is still often viewed as a technocratic function focused mainly on price and compliance. This dissertation proposes an alternative perspective: public buyers can actively engage in market stewarding by influencing the structure, diversity, and direction of supplier markets.

The research starts from the observation that public buyers face a tension between market concentration and diversity. Decades of efficiency-driven policies and fragmented procurement practices have contributed to markets dominated by a small number of suppliers, limiting innovation and increasing dependence and vulnerability to disruptions. At the same time, societal challenges such as climate change, digital transitions, and social inequality require more resilient, innovative, and diverse supplier ecosystems. The dissertation therefore asks: how can public buyers shape and steward markets?

Study 1 develops the conceptual foundations of public procurement as a form of market stewarding and explains how procurement decisions influence market dynamics. Study 2 examines how public buyers collectively shape markets, drawing on Elinor Ostrom’s theory of common-pool resource governance. Through comparative case studies, it highlights the importance of collaboration, trust, and institutional arrangements in enabling durable market stewardship. Study 3 investigates why public buyers engage, or fail to engage, in market shaping/stewarding. Using the Awareness–Motivation–Capability framework, it shows how intervention depends on legitimacy, available tools, and institutional context. Finally, Study 4 explores how stewarding principles can be translated into procurement practice. Combining qualitative fieldwork with system dynamics modelling, it demonstrates how procurement design choices can influence market diversity and resilience over time.

Together, the studies show that public procurement is not only an operational activity, but also a strategic instrument for steering markets toward public value, resilience, and diversity.