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Performance-based contracting (PBC) has been gaining popularity over the years. However, empirical studies investigating the impact of PBC features have been limited. The main purpose of this study is to investigate the effect of PBC features leading to quality investment that fosters financial benefits.

After examining the validity and reliability of scale items through confirmatory factor analysis, this study tested hypotheses using covariance-based structural equation modeling of survey data from 381 supply, logistics and operations managers.

The findings reveal the impact of PBC features (joint knowledge generation, goal congruence and incentive alignment) on financial benefits and the mediation impact of quality investment between these features and financial benefits. The upfront investment for quality enhancement was found facilitator of PBC features to achieve financial benefits. The findings also reveal the importance of collaborative communication and information sharing for knowledge generation that leads financial benefits through quality investment. This study shows that PBC governance strengthens the theory of relational view by empowering collaborative efforts and aligning goals and incentives within downstream suppliers for knowledge generation and quality enhancement.

An analysis of PBC features by industry would be very beneficial in differentiating between and more thoroughly understanding the commonalities and differences across various sectors. Investigating how these change across industries would also help identify any bias in PBC implementation.

This study illustrates that it will be practical and beneficial for suppliers to understand the major drivers of quality investment and the relationship between quality investment and the financial benefits of selecting PBC.

Unlike most previous studies, this research contributes to the literature in that it is one of the relatively few examples of empirical research on PBC features. Overall, the findings of this study will improve our understanding of how PBC features enhance upfront investment in quality and improve financial benefits.

Despite the significant increase in the adoption of performance-based contracting (PBC) in various industries, the primary value drivers of it are still not clear. Considering a lack of empirical evidence for PBC, this study investigates the effects of collaboration between the suppliers to understand the value offerings created in PBC by empirical findings. The purpose of this paper is to examine how supply chain collaboration (SCC) affects PBC benefits.

Using data from 381 survey participants who hold the title of manager or above, hypotheses are tested using structural equation modeling (SEM).

The results reveal that a strong and positive relationship between SCC and PBC benefits.

One of the limitations of this research is the collection of data through the Amazon Mechanical Turk online service. The experience level of participants in PBC and the absence of validation of these scale items by industrial experts are other limitations of this study. Nonetheless, the authors found convincing evidence that SCC has a positive effect on PBC benefits.

The findings highlight the importance of SCC to increase financial, operational and non-financial benefits of PBC for practitioners. The findings offer guidance for managers aiming to increase PBC benefits through SCC.

This is the first study to empirically examine the impact of SCC for better PBC and contributes to the body of knowledge by providing empirical findings in a PBC context. This research also develops valid and reliable instruments to measure PBC benefits through rigorous empirical and statistical analysis that can be used in future studies.

This study aims to empirically test the effects of key characteristics of performance-based contracting (PBC) (i.e. reward/payment scheme, increased supplier autonomy and transfer of responsibilities) on supplier goal commitment.

This study developed a conceptual model applying goal-setting theory (GST), expectancy theory (ET) and job characteristics theory (JCT). Survey data were collected and analyzed using structural equation modeling (SEM) to establish a validated measurement instrument for testing the hypotheses.

The findings revealed that PBC positively affects supplier goal commitment due to its unique characteristics, which translates into improved supplier performance. Furthermore, this study validated the mediating role of goal alignment and felt accountability operating between PBC characteristics and supplier goal commitment.

This study explored the buyer–supplier relationship from the supplier's standpoint. Using a more inclusive data set, future research may involve a dyadic analysis and focus on the effects of the following factors on the supplier goal commitment: relational aspects (e.g. trust and collaboration), the risk transfer from the buyer to the supplier, different incentive schemes and successful PBC implementation factors.

This study presents new, validated insights for contract selection, design and management. It underlines the importance of choosing the proper contract, having the appropriate contract design based on the desired outcomes and effective contract management by exhibiting the psychological/behavioral effect of fundamental PBC characteristics.

PBC represents an active research stream, but its psychological/behavioral implications are understudied. Therefore, this research puts forth a conceptual framework with multiple testable hypotheses illustrating the relationship between PBC and supplier goal commitment.

In the last 20 years, e-waste has become a serious issue resulting from an overwhelming amount of electronics consumption. However, there has been limited research on how to decrease such waste in a structured manner. Toward study was to use a simulation methodology to investigate the dynamics of upfront investment in reliability enhancement promoted by performance-based contracting (PBC), based on the number of spare parts and duration of the contract.

The present research first details the relevant mathematical equations and uses game theory to demonstrate the utility for supplier and buyer relationships. Next, the effects of reliability enhancement, spare partsPBC are analyzed using a BlockSim simulation model.

The results indicate strong relationships among system design cost, reliability, availability and service cost. The authors found that investment in reliability increases system availability while reducing total service costs. Furthermore, increasing the spare parts inventory was determined to have less influence on the readiness of highly reliable systems. The findings support the notion that PBC reduces e-waste by increasing system availability, incentivizing upfront investment in reliability growth.

Recognition of these findings in the context of buyer–supplier relationships will help managers better understand the value of upfront reliability investment, reducing maintenance, repair and overhaul requirements, avoiding the need to plan for extra spare parts and minimizing volume and the resulting e-waste.

This study also clarifies the uncertainty associated with upfront investment and provides potential incentives for suppliers.

The main contribution of this study is its use of PBC for e-waste reduction, highlighting the effects of upfront investment in reliability enhancement. The authors applied a game theory model to illustrate the relationship between incentives and upfront investment and demonstrate how increased levels of spare parts can be counterproductive to achieving readiness, reducing inventory and consequent e-waste.

This research paper aims to examine two hybrid models of logistics service quality (LSQ) and its influence on satisfaction, loyalty and future purchase intention in a business-to-consumer (B2C) e-commerce context. This study extends the literature for LSQ by incorporating the second-order assurance quality construct, which comprises personnel contact quality, order discrepancy handling and order returns, into one of the hybrid models.

A survey-based approach is used to collect data. Participant responses to questions concerning multiple LSQ dimensions and behavioral perceptions from their most recent online shopping experience are measured using structural equation modeling.

Findings highlight the importance of including a second-order construct assurance quality as a more explanatory model. Results illustrate that online ordering procedures and assurance quality impact customer satisfaction more than other prominent LSQ dimensions. Furthermore, the findings revealed a customer loyalty is a partial mediator between customer satisfaction and future purchase intention. This underscores the significance of improved logistics services as a competitive edge for e-commerce retailers.

Implications are limited to the e-commerce B2C domain.

The findings of this study underscore critical LSQ dimensions that garner greater satisfaction and retention in the online shopping experience. The results indicate that the effective and efficient handling of the initial order and any order problem significantly influences customer satisfaction and reaps the long-term benefits of customer retention.

The authors present and empirically test a hybrid model of LSQ in a B2C e-commerce domain that captures many of the important elements of the customer experience as espoused in the literature.

The purpose of this study is to determine the factors that impact the trust of microenterprises in online selling platforms and cargo carriers and examine the consequences of a lack of trust.

This study adopts a qualitative exploratory approach and uses grounded theory to generate insights based on interviews with 27 microenterprise owners selling internationally on an online selling platform.

The results show that a lack of competence, an absence of an integrated claim system and a lack of transparency are the main factors affecting sellers’ trust in online selling platforms. The relationship between the sellers’ intention to continue to use the online selling platform and their trust in the platform was found to be moderated by switching costs.

This study is limited in that the results were mainly based on the sellers’ perspectives although the phenomenon of interest involves various actors. To mitigate this limitation and cross-check the data, the customer reviews and some of the sellers’ account statistics were also analyzed.

This study introduces the sellers’ perspectives on the dynamics of supply chain management in international micro trade. These dynamics provide a guideline for how to build and manage an online selling platform targeting microenterprises.

Unlike previous studies, this study examines online transaction behaviors from the standpoint of sellers, not buyers. Moreover, it is the first study examining the damaged or lost shipments within the context of online transactions in international micro trade.

Global supply chains are increasingly becoming more prone to high-impact disruptions, which has been fairly evident with the coronavirus disease 2019 (COVID-19) pandemic. The capacity to address disruptions is essential for the survival of any organization. Coping with increasing complexity and uncertainties requires a systemic view of supply chains. Furthermore, a comprehensive understanding of the governance structure and timely decision-making are critical in times of disruptions. Although several aspects of supply chain resilience (SCRES) are broadly studied in the literature, the relationship between supply chain orientation (SCO), decentralization in decision-making and SCRES is an understudied area.

This study takes a longitudinal approach to address this research gap with a comprehensive meta-analytic review to explore the relationships between the constructs of interest through the lenses of contingency and dynamic capability theories. Furthermore, 2 surveys with sample sizes of 250 and 200 were conducted with supply chain professionals to test the research framework before and after the pandemic to compare the findings.

Structural Equation Modeling (SEM) analysis indicates a positive relationship between SCO and decentralization and between decentralization and SCRES. The post-COVID-19 analysis further validates the influence of agility, collaboration and situational awareness related to decentralization and resilience. More importantly, capabilities have a higher impact on resilience during the pandemic than before.

The results entreat organizations to attain decentralized decision-making vis-à-vis dedicated functional teams charged with reacting timely to disruptions. The teams should be empowered to leverage their knowledge and experiences regardless of their position in the hierarchy.

Although SCRES is an active research stream, the structural aspects of SCRES and its relationship with SCO are understudied. Therefore, this research puts forth a research framework and empirically tests hypotheses that frame the relationship between SCO, decentralization and resilience outcomes in pre- and post-COVID environments.