Outcome-based contract performance and value co-production in B2B maintenance and repair service
Ng, Irene C. L.; Ding, Xin
Date: 2010
Conference paper
Abstract
This paper investigates co-production in a B2B Maintenance, Repair and
Overhaul (MRO) service contract where the firm is tasked to deliver outcomes of MRO
service rather than activities directly related to maintenance and repair. Our qualitative
findings show that the promise of outcomes has extended the boundary of the firm to
include ...
This paper investigates co-production in a B2B Maintenance, Repair and
Overhaul (MRO) service contract where the firm is tasked to deliver outcomes of MRO
service rather than activities directly related to maintenance and repair. Our qualitative
findings show that the promise of outcomes has extended the boundary of the firm to
include the customer system within its responsibility, resulting in the allowance of
customer variety into the firm’s system as the consumption of the service is contextual
and varied. The ability to deliver the service in such an environment requires the firm’s
operations process design to be extended beyond supply chain management for
material/equipment transformation, but to include information and people transformation
as well. Through a quantitative study and Partial Least Squares analysis, the paper
shows that outcome-based contract performance is dependent on the co-production
alignments of behaviors and information but not material/equipment, with the alignments
partially driven by the co-production inputs of complementary competencies and
congruence of expectations.
Management
Faculty of Environment, Science and Economy
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