From Contract Management to Societal Value Creation: A Public Procurement Portfolio Model

ABSTRACT Public procurement is central to policy delivery, yet it remains underdeveloped in strategic procurement research. Established portfolio frameworks (e.g., the Kraljic Matrix) do not reflect public‐sector regulatory accountability, heterogeneous stakeholder mandates, or the primacy of societal value over profit. This article develops a prescriptive, typology‐based portfolio model tailored to public procurement. The model organizes procurement contexts along two analytically distinct dimensions: (1) institutional–stakeholder complexity (i.e., the challenge of reconciling regulatory obligations, policy mandates, and diverse stakeholder interests) and (2) supply network risk (i.e., operational vulnerabilities that threaten continuity through disruptions, traceability failures, and catastrophic events). Crossing these dimensions yields four strategy archetypes—Cooperative Agreements, Patronized Competition, Monitored Partnerships, and Contingency Sourcing—with if‐then design rules that prescribe governance, sourcing, oversight, and stakeholder coordination choices for each context. Developed through a synthesis of procurement portfolio management literature, an expert qualitative questionnaire with senior public procurement professionals, and conceptual integration, the framework links institutional–stakeholder dynamics with supply network risk, offering actionable guidance for aligning procurement strategy with societal objectives while advancing public procurement theory.