Please use this identifier to cite or link to this item:
Title: Hidden costs in different stages of advanced services – A multi-actor perspective of performance based contracts
Authors: Datta, Partha Priya
Keywords: Agency theory
Case based research
Hidden costs
Multi actor systems
Performance based contracts
S-D logic
Issue Date: 2020
Publisher: SCOPUS
Journal of Business Research
Elsevier Inc.
Series/Report no.: 121
Abstract: Performance based contract (PBC) is an innovative advanced service strategy for offering product service solutions. PBC aims at increasing customer value and reducing the costs of operations. However, manufacturers incur unquantifiable �hidden costs� while implementing PBC. This paper uses agency theory and service-dominant logic to build a theoretical framework to study the hidden costs of PBCs. The research uses a multiple exploratory case study approach to unravel the drivers of hidden costs during the design, delivery and adaptation phases of PBC. This paper derives findings from five PBCs from the UK defence industry. The analysis reveals four major hidden cost drivers (supplier relations, contract complexity, customer relations, and cost estimation problems) of PBC. The research refines the theoretical framework by linking the hidden cost drivers, PBC life cycle stages and engagement of the service network partners. It develops a set of propositions for guiding future research and managerial practices.
Description: Partha Priya Datta, Department of Operations Management, Indian Institute of Management, Calcutta, Diamond Harbour Road, Kolkata, 700104, India
ISSN/ISBN - 01482963
DOI - 10.1016/j.jbusres.2020.03.036
Appears in Collections:Operations Management

Files in This Item:
There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.