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.
Details
Keywords
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.
Details
Keywords
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.
Details
Keywords
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.
Details
Keywords
María‐José Pinillos, Eloísa Díaz-Garrido and María-Luz Martín-Peña
The purpose of this paper is to analyze the origins and evolution of the concept of servitization by studying the definitions of servitization provided in the literature…
Abstract
Purpose
The purpose of this paper is to analyze the origins and evolution of the concept of servitization by studying the definitions of servitization provided in the literature. Servitization represents an academic field that has grown rapidly since its inception. However, the conceptualization of servitization varies greatly, in part because of the number of studies on this topic and the fact that it has been analyzed in a range of disciplines using a number of theoretical approaches. There is a need to standardize the vocabulary to create a general definition that can support the development of theory in this domain and help legitimize servitization as a research area.
Design/methodology/approach
This study conducts a systematic, quantitative analysis of a broad set of definitions of servitization. Specifically, this study performs content analysis (combining co-word analysis and social network analysis) and consensus analysis. This study develops a strategic diagram to represent the morphology of the research network.
Findings
The definitions of servitization are deconstructed and analyzed in depth to create a comprehensive picture of the research on this topic. This analysis reveals the origins and evolution of this research area. The results show a low degree of consensus among scholars regarding the concept of servitization. This study proposes a definition that should be widely accepted thanks to its inclusion of the core terms from other definitions. Explicit recognition of multiple approaches to defining the term can help practitioners and researchers. Predictions about future progress in this area are discussed.
Originality/value
A universal definition of servitization is proposed based on the results of co-word and network analysis. This definition unifies a range of multidisciplinary viewpoints. From a practical perspective, the key vocabulary in servitization research is highlighted.
Details
Keywords
Grégory De Boe, Valérie Swaen and Marie Lamensch
This study examines conditions under which taxes and subsidies designed to mitigate corporate environmental impact positively influence corporate pro-environmental behavior (CPEB…
Abstract
Purpose
This study examines conditions under which taxes and subsidies designed to mitigate corporate environmental impact positively influence corporate pro-environmental behavior (CPEB) adoption, considering unique dynamics within different industries.
Design/methodology/approach
A systematic literature review was conducted on 171 articles. Articles were coded using an inductive grid for comprehensive examination.
Findings
Taxes generally positively influence CPEB adoption, but reduced positive or even negative effects can arise. Subsidies, while often facilitating the achievement of environmental goals, variously impact CPEB. Explanations for variations include the level of taxation or subsidy, economic agent affected, subsidy source, nature of subsidy, factors external to tax or subsidy characteristics and conflicting environmental objectives. We suggest research avenues for each aspect, to enhance literature on the influence of tax policies on promoting CPEB.
Practical implications
Beyond general tax-policy considerations, we provide policymakers with recommendations for tax policies designed to promote CPEB.
Originality/value
We examine the distinctive effects of taxes and subsidies on CPEB adoption within diverse industries ((re)manufacturing, agriculture, shipping, automobile, freight transport and power generation). We compare specific effects across industries, and advocate detailed exploration of recurrent elements identified, emphasizing their potential significance in designing taxes and subsidies that promote CPEB.