Article Abstract
In signing an executive order to terminate diversity, equity, and inclusion in federal workforce and contracting practices and programs, President Donald J. Trump argued that DEI initiatives are a public waste and hurt government performance. However, a study of set-aside contracts for small and diverse suppliers contradicts this claim, showing that these programs improve federal procurement performance. The study found that small and diverse suppliers perform better when awarded contracts through set-aside programs, with lower cost overruns and shorter delays, compared to smaller and diverse suppliers and larger suppliers who won their contracts in open competitions. These findings also suggest that large corporations that currently allocate only a small percentage of their spending to small and diverse suppliers should develop their own programs to increase these purchases.
Harvard Business Review, February 2025
About the researcher
Dr Leopold Ried is a scholar in conflict management and supply chain management, specializing in research, teaching, and coaching of negotiations and procurement. His work primarily explores the behaviors of negotiators and their impact on both commercial and relational outcomes.
Currently, he is investigating how storytelling, warm communication, and the use of AI-bots influence negotiation dynamics. He is particularly interested in the causes and effects of deceptive behaviors. Experiments are his method of choice.
His research has been published in both academic- and practitioner-oriented outlets including the Journal of Operations Management, Production and Operations Management, and Harvard Business Review. He also serves as a reviewer for several academic journals and was honored with the "Outstanding Reviewer" award by the Journal of Purchasing and Supply Management in 2023. He is a regular speaker at international conferences and had the privilege of presenting his research to the United States government in 2024.
He has been teaching across Bachelor’s, specialized Master’s, and MBA programs, covering topics such as negotiations, procurement, project management, the management of socio-economic dilemmas, and research methods. Prior to his academic career, he gained valuable industry experience in Germany, the UK, Chile, and Italy, including roles in Business Development at Fraunhofer and Procurement at ThyssenKrupp.