The article presents a systematic analysis of institutional factors determining the effectiveness of procurement outsourcing in both public and corporate sectors of the economy. The aim of the study is to systematize and comprehensively analyze these factors, as well as to develop a conceptual model of their multilevel impact on the transfer of functions to an external provider. The methodological framework is based on the institutional approach, transaction cost theory, and the concept of hybrid forms of economic coordination. The paper reveals the role of legal, control, market, digital, financial, and socio-cultural institutions in shaping incentive structures and in the distribution of risks and transaction costs. It is demonstrated that the effectiveness of procurement outsourcing depends on the coherence of the institutional environment. The study substantiates the need for the integrated development of both formal and informal institutions to enhance the sustainability and performance of contractual relations.
procurement outsourcing, institutional environment, transaction costs, contract system, public procurement
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