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The effects of government policy to enhance small business opportunities in state government
Dissertation   Open access

The effects of government policy to enhance small business opportunities in state government

Reginald B. McNeil II
Doctor of Business Administration (D.B.A.), Drexel University
May 2026
DOI:
https://doi.org/10.17918/00011430
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Abstract

Acquisition Contract awards Contracting Government policy Procurement Small businesses
Small businesses play a critical role in economic development, innovation, and job creation; however, they frequently receive a disproportionately small share of government contract spending. In response to concerns regarding equitable access to procurement opportunities, the Commonwealth of Pennsylvania issued Executive Order 2023-18 to expand contracting opportunities for small businesses through enhanced outreach, reporting, accountability, and procurement support initiatives. Despite the growing use of procurement policy as a tool for economic development, limited empirical evidence exists regarding whether such policy interventions produce measurable changes in contracting outcomes. The purpose of this quantitative study was to evaluate the effect of Executive Order 2023-18 on small business contracting outcomes within Pennsylvania's procurement system. Guided by Resource-Based View Theory, Institutional Theory, Implementation Theory, and Public Value Theory, the study employed a quasi-experimental Difference-in-Differences research design to compare contracting outcomes for small businesses relative to other-than-small businesses before and after implementation of the Executive Order. Procurement data were obtained from the Commonwealth of Pennsylvania's PRISM and SAP systems and included prime contract awards across seven executive agencies during the fourth quarter of fiscal years 2021 through 2025. Contracting outcomes were measured using contract participation, contract count, and total contract value. Agency fixed effects were incorporated to account for differences in procurement environments across agencies.

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