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1 – 10 of 18Alexander Lauber, Bengt Sandell, Per Holmbom and Ole Pedersen
Scientists at Linkoping Institute of Technology assess the state of tactile sensing and offer some of their own ideas.
Per Holmbom, Ole Pedersen, Bengt Sandell and Alexander Lauber
By tradition, sensors are used to measure one desired parameter; all other parameters influencing the sensor are considered as interfering inputs, to be eliminated if possible…
Abstract
By tradition, sensors are used to measure one desired parameter; all other parameters influencing the sensor are considered as interfering inputs, to be eliminated if possible. Hence most of existing sensors are specifically intended for measuring one parameter, e.g. temperature, and the ideal temperature sensor should be as immune to all other parameters as possible. True, we sometimes use primitive sensor fusion, e.g. when calculating heat flow by combining separate measurements of temperature difference and of fluid flow.
Andreas H. Glas, Florian U. Henne and Michael Essig
Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service…
Abstract
Purpose
Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service performance with the aim of providing monetary incentives to safeguard possible outcomes as much as possible for the PBC customer. Performance measurement and its management are crucial for PBC success and, in particular, for the pay-for-performance link. However, the literature on PBC performance management is rather sparse, and there has been no systematic review on the topic. Thus, the purpose of this paper is to fill that gap and to present a comprehensive and systematic review of performance measurement and management in the PBC context.
Design/methodology/approach
The paper builds on a literature review based on a sample of 102 subject-relevant articles from academic journals. The content analysis follows a two-step procedure. First, the articles are coded following a process-based research framework. Second, the content of each process step is assessed in a qualitative text analysis.
Findings
The results show a surprising scarcity of papers that explicitly address performance management topics in the context of PBC. Only the topics of performance specification and performance indicators are broadly addressed, whereas in all of the other areas, e.g., strategic alignment, data capture and reporting, only limited specific findings could be found.
Research limitations/implications
The paper concludes that future research on performance management in PBC should expand its theoretical framework and empirical efforts in four specific proposed directions.
Originality/value
The paper provides an up-to-date review that is focused on performance management and measurement in the emerging context of PBC.
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Andreas H. Glas and Florian C. Kleemann
Performance-based contracting (PBC) links pricing with performance objectives in service business relationships. Although interest in PBC has surged recently, there is still great…
Abstract
Purpose
Performance-based contracting (PBC) links pricing with performance objectives in service business relationships. Although interest in PBC has surged recently, there is still great uncertainty about the risks, opportunities and challenges. This paper aims to provide a deeper understanding of the contextual factors of PBC and how providers assess them.
Design/methodology/approach
This paper includes conducting a multiple-case study evaluation and analyzes data from 21 cases. Risks, opportunities and contextual factors are identified through interviews, and the case data are analyzed with several methods, including Borda count and cross-tabulation.
Findings
The results show that the most important factors of PBC are clear responsibilities, clear performance indicators, transparent measurement, cooperative culture and a precise utilization profile of core assets. Surprisingly, incentives are of minor perceived relevance. The analysis supports the differentiation of PBC into two subcategories: lean (low integrated) and customized (high integrated) PBC.
Research limitations/implications
While many studies stress the uniqueness of PBC in accordance with the “one-size-does-not-fit-all” mantra, this research differentiates the standardized PBC from a customized one. The findings face the limitations of case study research and qualitative data analysis in general.
Practical implications
Practitioners are provided with guidance to develop either a customized or a standardized PBC.
Originality/value
Previously, broader empirical insights have still been rare; thus, this paper contributes to the PBC literature, as it provides data from multiple cross-industry cases. The findings (e.g. the minor relevance of incentives) stand in contrast to parts of the academic literature and contribute also to the wider service management field.
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Martin Holmbom, Bjarne Bergquist and Erik Vanhatalo
The purpose of this paper is to summarize previously reported benefits, drawbacks and important aspects for implementation of performance-based logistics (PBL), and to identify…
Abstract
Purpose
The purpose of this paper is to summarize previously reported benefits, drawbacks and important aspects for implementation of performance-based logistics (PBL), and to identify knowledge gaps.
Design/methodology/approach
This is a literature review based on 101 articles. The reviewed articles are relevant to PBL in particular, but also to performance contracting, product-service systems (PSS) and servitization in general. The research method involved database searches, filtering results and reviewing publications.
Findings
PBL is a business concept that aims to reduce the customer's total costs for capital-intensive products and increase the supplier's profit. The design of the contract, performance measurements and payment models are important aspects for successful implementation. However, the authors find a reason for concern to be the lack of empirical evidence of the profitability of PBL for the customer and the supplier.
Originality/value
This literature review of PBL also includes publications from the related research areas: performance contracting, PSS and servitization. Developing PBL can benefit from results in these research areas.
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Aapo Länsiluoto, Annukka Jokipii and Tomas Eklund
This study aims to examine and visualize the adopted internal control structure and effectiveness in firms and present a typology of firms. Control structure and effectiveness are…
Abstract
Purpose
This study aims to examine and visualize the adopted internal control structure and effectiveness in firms and present a typology of firms. Control structure and effectiveness are measured based on the assessment of management, rather than using reported material weaknesses as most studies do. This type of evaluation is more purposeful for firms that do not apply the Sarbanes-Oxley Act. Internal control frameworks provide only broad guidance concerning internal control concepts, leaving the details to the adopting firms.
Design/methodology/approach
The survey data (from 741 CEOs) are clustered using the self-organizing map, a visual artificial neural network approach. A three-dimensional effectiveness proxy is used.
Findings
The analysis reveals four alternative types of internal control effectiveness in firms and visually presents how the components of the internal control structure are associated with each one. A typology of internal control structure and effectiveness is then created.
Practical implications
The findings suggest that there are interrelated, but not straightforward, relationships between internal control variables and that there is a link between some of them and higher internal control effectiveness in practice. These findings have important implications for those responsible for improving or assessing internal control, such as management, personnel and internal and external auditors.
Originality/value
This paper uses a clustering approach to create a typology for alternative types of internal control structure and effectiveness, based on data from actual firms. Instead of using material weaknesses as a measure, this study uses managers’ own assessments of internal control effectiveness.
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Andreas Herbert Glas, Clarissa Raithel and Michael Essig
In performance-based contracting (PBC), the provider is paid according to outcomes for its customer, and therefore assumes responsibility for customer risks. Previous studies have…
Abstract
Purpose
In performance-based contracting (PBC), the provider is paid according to outcomes for its customer, and therefore assumes responsibility for customer risks. Previous studies have revealed that risk exposure is a fundamental influencing factor. Thus, the purpose of this paper is to analyze how previous experience with PBC influences the perception of risks.
Design/methodology/approach
This research is based on a cross-industry study. Factor analysis and discriminant analysis are used to reveal to what extent experience influences PBC risk factors.
Findings
It is confirmed that risk perception differs significantly according to previous PBC experience. Thus, significant learning effects are identified in the PBC context.
Research limitations/implications
Experiential learning in PBC can explain entry barriers to PBC faced by new buyers with low levels of experience. Although the internal validity of the sample is high, as all analyzed cases represent PBC buying companies, there are limitations related to external validity.
Practical implications
To manage risks this study provides a structure (12 risks, 3 aggregated factors), which could be used for risk evaluation and strategic and operative risk management. Other implications recommend, e.g., to collaborate with a PBC “veteran” when entering into PBC, as this boosts the level of PBC-related experience.
Originality/value
The findings of this study contribute to identifying PBC risks through the explorative statistical assessment of these PBC risk factors.
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Alexander Y. Yashin, Dmitry V. Yashunsky, Aleksander N. Vedenin, Nikolay E. Nifantiev, Yakov I. Yashin and Boris V. Nemzer
The purpose of this paper is to determine the antioxidant activity of natural polyphenols from larch wood by the amperometric method.
Abstract
Purpose
The purpose of this paper is to determine the antioxidant activity of natural polyphenols from larch wood by the amperometric method.
Design/methodology/approach
Direct measurements of antioxidant activity were carried out by the amperometric method in an oxidizing mode with glassy carbon as a working electrode, set potential +1.3V and using a flow-injection system with 2.2 mM phosphoric acid as the mobile phase with a flow rate of 1.2 ml/min.
Findings
The reported results show the following values of antioxidant activity for the tested compounds: (−)-secoisolariciresinol – 0.199 ± 0.002 mg/L (p < 0.05); isolariciresinol – 0.196 ± 0.002 mg/L (p < 0.05); lariciresinol - 0.222 ± 0.001 mg/L (p < 0.05); O-isopropylidene derivative of (−)-secoisolariciresinol - 0.143 ± 0.002 mg/L (p < 0.05); (+)-dihydroquercetin – 0.153 ± 0.002 mg/L (p < 0.05); and quercetin – 0.521 ± 0.001 mg/L (p < 0.05). The last product was tested as the reference of a widely used current antioxidant. General tendencies of determined values of antioxidant activity for studied compounds are in good correlation with published data as determined by the t-BuOOH-initiated lipid peroxidation method.
Practical implications
Described results show practical applicability of the amperometric method as being faster and cheaper in comparison to other methods, including oxygen radical absorbance capacity (ORAC) assay or 2,2′diphenyl-1-picrylhydrazyl (DPPH) reagent based assay.
Originality/value
The described results show the first-time application of the amperometric method for the evaluation of the antioxidant activity of phenolic compounds from larch wood.
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Industrial progress is in large measure a function of the scientific understandings inherent in a given body of technology. It is, of course, true that technology can be developed…
Abstract
Industrial progress is in large measure a function of the scientific understandings inherent in a given body of technology. It is, of course, true that technology can be developed empirically and much of it has been. It is also true, however, that technology based on scientific understandings is in practically every instance more effective. If only empiricism is involved there inevitably comes a time when technological progress ceases. It is for this reason that scientific studies in the coatings industry must be continually encouraged.
Hasan Uvet, Saban Adana, Hasan Celik, Sedat Cevikparmak and Yavuz Idug
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Practical implications
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.
Originality/value
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.
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