Outcome-based service contracts in the defence industry - mitigating the challenges

Journal of Service Management

Volumn 21, Issue 5, 2010, Pages 656-674

  Ng, Irene C L ^a   Nudurupati, Sai S ^b  

^a UNIVERSITY OF EXETER BUSINESS SCHOOL   (United Kingdom)

^b MANCHESTER METROPOLITAN UNIVERSITY   (United Kingdom)

Author keywords

Contracts; Defence sector; Service delivery; Value added

Indexed keywords

EID: 77956090658     PISSN: 17575818     EISSN: None     Source Type: Journal    
DOI: 10.1108/09564231011079084     Document Type: Article

References (61)

1. Anderson, J.C. and Narus, J.A. (1995), "Capturing the value of supplementary services" in Harvard Business Review, Vol. 73, No. 1, pp. 75-83.
2. Anon. (2009a), Aircraft Maintenance, Repair and Overhaul (MRO): A Global Market Report, Global Industry Analysts, San Jose, CA, April.
3. Anon. (2009b), Growth Opportunities in Wind Maintenance, Repair and Overhaul Services Market 2008-2013, Lucintel, Las Colinas, TX, January.
4. Baines, T., Lightfoot, H., Peppard, J., Johnson, M., Tiwari, A. and Shehab, E. (2009), "Towards an operations strategy for product-centric servitization" in International Journal of Operations & Production Management, Vol. 29, No. 5, pp. 495-519.
5. Berkowitz, D., Gupta, J.N.D., Simpson, J.T. and McWilliams, J.B. (2004), "Defining and implementing performance-based logistics in government", Defense AR Journal, December, available at: http://findarticles.com/p/articles/mi_m0SVI/is_3_11/ai_n13821991/ (accessed January 4, 2010).
6. Bessant, J. and Davies, A. (2007), "Managing service innovation" in Bessant, J., Davies, A., Tether, B., Howells, J., Voss, C., Zomerdijk, L. and Massini, S. (Eds.), Innovation in Services, Department of Trade and Industry, London, pp. 61-96, DTI Occasional Paper No. 9.
7. Bramwell, J. (2003), "What is performance based building?" Lee, A. and Barrett, P.S. (Eds.), Performance-based Building, Vol. CIB Report 291, CIB Publication, Rotterdam, First International State of the Art Report.
8. Brax, S. (2005), "A manufacturer becoming service - challenges and a paradox" in Managing Service Quality, Vol. 15, No. 2, pp. 142-55.
9. Brodbeck, P.W. (2002), "Implications for organization design: teams as pockets of excellence" in Team Performance Management: An International Journal, Vol. 8, Nos 1/2, pp. 21-8.
10. Derrick, R.D. and Jacoby, R. (2003), "The forgotten supply chain: how original equipment manufacturers can create value by optimizing the aftermarket business", Accenture Research & Insights, available at: www.accenture.com.sa/NR/rdonlyres/1E449401-AAB1-43A1-A8E4-243485D34B36/0/track_aftermarket.pdf (accessed January 4, 2010).
11. Dooley, D. (2001), Social Research Methods, Prentice-Hall, Upper Saddle River, NJ.
12. Drago, W.A. (1998), "Mintzberg's 'pentagon' and organizational positioning" in Management Research News, Vol. 21, Nos 4/5, pp. 30-40.
13. Eisenhardt, K.M. (1989), "Building theories from case study research" in Academy of Management. The Academy of Management Review, Vol. 14, No. 4, pp. 532-50.
14. Farris, M.T., Wittman, C.M. and Hasty, R. (2005), "Aftermarket support and the supply chain" in International Journal of Physical Distribution & Logistics Management, Vol. 35, No. 1, pp. 6-19.
15. Foliente, G.C. (2000), "Developments in performance-based building codes and standards" in Forest Products Journal, Vol. 50, Nos 7/8, pp. 12-21.
16. Galunic, C.D. and Eisenhardt, K.M. (1996), "The evolution of intracorporate domains: divisional charter losses in high-technology, multidivisional corporations" in Organization Science, Vol. 7, No. 3, pp. 255-82.
17. Gebauer, H., Fleisch, E. and Friedli, T. (2005), "Overcoming the service paradox in manufacturing companies" in European Management Journal, Vol. 23, No. 1, pp. 14-26.
18. Glas, A. and Essig, M. (2008), "Public performance contracting of solutions: benefits and consequences", Proceedings of the Annual Conference of the International Purchasing & Supply Education & Research Association, Perth, Australia.
19. Gordon, S. (2001), Performance-based Contracting, International City/County Management Association, Washington, DC.
20. Gruneberg, S., Hughes, W. and Ancell, D. (2007), "Risk under performance-based contracting in the UK construction sector" in Construction Management and Economics, Vol. 25, No. 7, pp. 691-9.
21. Hensher, D.A. and Stanley, J. (2008), "Transacting under a performance-based contract: the role of negotiation and competitive tendering" in Transportation Research Part A, Vol. 42, pp. 1143-51.
22. Järvensivu, T. and Törnroos, J. (2010), "Case study research with moderate constructionism: conceptualization and practical illustration" in Industrial Marketing Management, Vol. 39, No. 1, pp. 100-8.
23. Kim, S.H., Cohen, M.A. and Netessine, S. (2007), "Performance contracting in after-sales service supply chains" in Management Science, Vol. 53, No. 12, pp. 1843-58.
24. Lapierre, J., Tran-Kanh, A. and Skelling, J. (2008), "Antecedents of customers' desired value change in a business-to-business context: theoretical model and empirical assessment" in Services Marketing Quarterly, Vol. 29, No. 3, pp. 114-48.
25. Leonard-Barton, D. (1992), "Core capabilities and core rigidities: a paradox in managing new product development" in Strategic Management Journal, Vol. 13, No. 8, pp. 111-25.
26. Lewin, A.Y., Long, C.P. and Carroll, T.N. (1999), "The co-evolution of new organizational forms" in Organization Science, Vol. 10, No. 5, pp. 535-50.
27. Lumini, A. and Nanni, L. (2006), "Detector of image orientation based on Borda count" in Pattern Recognition Letters, Vol. 27, No. 3, pp. 180-6.
28. Manzini, E. and Vezzoli, C. (2003), "A strategic design approach to develop sustainable product service systems: examples taken from the 'environmentally friendly innovation' Italian prize" in Journal of Cleaner Production, Vol. 11, No. 8, pp. 851-7.
29. Marcus, S. (1964), "Studies of defence contracting" in Harvard Business Review, Vol. 42, No. 3, pp. 20-184.
30. Marion, R. and Bacon, J. (2000), "Organizational extinction and complex systems" in Emergence, Vol. 1, No. 4, pp. 71-96.
31. Markeset, T. and Kumar, U. (2005), "Product support strategy: conventional versus functional products" in Journal of Quality in Maintenance Engineering, Vol. 11, No. 1, pp. 53-67.
32. Martin, L. (2003), "Making performance-based contracting perform: what the federal government can learn from the state and local governments" Abramson, M.A. and Harris, R. (Eds.), The Procurement Revolution, Rowman & Littlefield, Lanham, MD.
33. Matthyssens, P. and Vandenbempt, K. (1998), "Creating competitive advantage in industrial services" in Journal of Industrial and Business Marketing, Vol. 13, Nos 4/5, pp. 339-55.
34. Mills, J., Neaga, E., Parry, G. and Crute, V. (2008), "Toward a framework to assist servitization strategy implementation", paper presented at the POMS 19th Annual Conference, California, 9-12 May.
35. Mont, O. (2001) in Introducing and developing a Product-Service System (PSS) concept in Sweden, The International Institute for Industrial Environmental Economics, Lund University, Lund, p. 124.
36. Morelli, N. (2002), "Designing product/service systems: a methodological exploration" in Design Issues, Vol. 18, No. 3, pp. 3-17.
37. Morelli, N. (2006), "Developing new product service systems (PSS): methodologies and operational tools" in Journal of Cleaner Production, Vol. 14, No. 17, pp. 1495-501.
38. Neely, A. (2007), "The Servitization of manufacturing", paper presented at the 14th International Annual European Operations Management Conference, Ankara.
39. Neely, A. and Austin, R. (2002), "Measuring performance: the operations perspective" in Neely, A. (Ed.), Business Performance Measurement: Theory and Practice, Cambridge University Press, Cambridge, pp. 41-50.
40. Neu, W.A. and Brown, S.W. (2005), "Forming successful business-to-business services in goods-dominant firms" in Journal of Service Research, Vol. 8, No. 1, pp. 3-17.
41. Neu, W.A. and Brown, S.W. (2008), "Manufacturers forming successful complex business services: designing an organization to fit the market" in International Journal of Service Industry Management, Vol. 19, No. 2, pp. 232-51.
42. Ng, I.C.L. and Maull, R.S. (2009), "Embedding the new discipline of service science: a service science research agenda", Proceedings of the fifth IEEE International Conference on Service Operations, Logistics and Informatics (SOLI 2009), Chicago, IL, USA, 22 July.
43. Ng, I.C.L., Maull, R.S. and Yip, N. (2009a), "Outcome-based contracts as a driver for systems thinking and service-dominant logic in service science: evidence from the defence industry" in European Management Journal, Vol. 27, No. 6, pp. 377-87.
44. Ng, I.C.L., Williams, J. and Neely, A. (2009b), "Service transformation and the new landscape of outcome-based contracting: an executive briefing", Advanced Institute of Management (AIM) Research Executive Briefing Series, October, available at: www.aimresearch.org/index.php?page=alias-3 (accessed January 4, 2010).
45. Oliva, R. and Kallenberg, R. (2003), "Managing the transition from products to services" in International Journal of Service Industry Management, Vol. 14, No. 2, pp. 160-72.
46. Peteraf, M.A. (1993), "The cornerstones of competitive advantage: a resource-based view" in Strategic Management Journal, Vol. 14, No. 3, pp. 179-91.
47. Prahalad, C.K. and Hamel, G. (1990), "The core competence of the corporation" in Harvard Business Review, Vol. 68, No. 3, pp. 79-91.
48. Roy, R. (2000), "Sustainable product-service-systems" in Futures, Vol. 32, pp. 289-99.
49. Shen, Y. (2003), "Selection incentives in a performance-based contracting system" in Health Services Research, Vol. 38, No. 2, pp. 535-52.
50. Simsek, Z. and Veiga, J.F. (2001), "A primer on internet organizational surveys" in Organizational Research Methods, Vol. 4, No. 3, pp. 218-35.
51. Thomas, D.R.E. (1978), "Strategy is different in service business" in Harvard Business Review, Vol. 56, No. 4, pp. 158-65.
52. Tukker, A. (2004), "Eight types of product-service system: eight ways to sustainability? Experiences from SusProNet" in Business Strategy and the Environment, Vol. 13, No. 4, pp. 246-60.
53. Tukker, A. and Tischner, U. (2006), "Product-services as a research field: past, present and future. Reflections from a decade of research" in Journal of Cleaner Production, Vol. 14, No. 17, pp. 1552-6.
54. Vandermerwe, S. and Rada, J. (1988), "Servitization of business: adding value by adding services" in European Management Journal, Vol. 6, No. 4, pp. 314-24.
55. Varey, C. and Kahneman, D. (1992), "Experiences extended across time: evaluation of moments and episodes" in Journal of Behavioral Decision Making, Vol. 5, No. 3, pp. 169-86.
56. Vargo, S.L. and Lusch, R.F. (2004), "Evolving to a new dominant, logic for marketing" in Journal of Marketing, Vol. 68, No. 1, pp. 1-17.
57. Vargo, S.L. and Lusch, R.F. (2008), "Service-dominant logic: continuing the evolution" in Journal of the Academy of Marketing Science, Vol. 36, No. 1, pp. 1-10.
58. Wise, R. and Baumgartner, P. (1999), "Go downstream: the new profit imperative in manufacturing" in Harvard Business Review, Vol. 77, No. 5, pp. 133-41.
59. Wong, M. (2004), "Implementation of innovative product-service systems in the consumer goods industry", Cambridge University, Cambridge.
60. Woodruff, R.B. (1997), "Customer value: the next source for competitive advantage" in Journal of the Academy of Marketing Science, Vol. 25, No. 2, pp. 139-53.
61. Yin, R.K. (1994), Case-study Research Design and Methods, 2nd ed., Sage, Thousand Oaks, CA.