Economic nationalism in public procurement: Responding to globalisation through the local jobs first policy in Victoria

PurposeLocal manufacturers have closed factories and retrenched workers amidst increasing global competition, leading to government procurement assistance in Victoria, Australia. This study aims to identify the drivers of significant procurement policy changes and examine how a local procurement law was established as a response to international trade and offshoring of manufacturing jobs in Victoria.Design/methodology/approachThis study has adopted a single-case study approach to examine a local procurement law. Thirty-five documents were analysed with the framework of institutional work embedded in the procurement policymaking process.FindingsThis study develops a unique framework that provides empirical and conceptual insights on drivers and how they stimulate actors to shape local procurement policy. It shows the intersection of actors’ interests and public interest by demonstrating a unique relationship between institutional work and the procurement policymaking process.Research limitations/implicationsSingle-case studies lack scientific generalisability. Nevertheless, this study adds knowledge that is lacking in the field of public procurement and provides a stronger foundation for comparative research.Practical implicationsThe symbiotic relationship between key actors is vital in navigating the local procurement policymaking challenges, particularly amidst opposition from globalisation advocates.Social implicationsThis study indicates that the Victorian Government uses local procurement to address the income inequalities associated with globalisation.Originality/valueThis study offers a greater understanding of preferential procurement policy development; and to the best of the authors’ knowledge, it is the first to examine the drivers of changes from open competition to mandatory preferential policy in Australia.