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  • Final version Performance Based Contracting in Long-term Supply Relationships

    Rights statement: This is the author’s version of a work that was accepted for publication in Industrial Marketing Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Industrial Marketing Management, 59, 2016 DOI: 10.1016/j.indmarman.2016.05.028

    Accepted author manuscript, 313 KB, PDF document

    Available under license: CC BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License

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Performance based contracting in long-term supply relationships

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>11/2016
<mark>Journal</mark>Industrial Marketing Management
Volume59
Number of pages13
Pages (from-to)50-62
Publication StatusPublished
Early online date10/06/16
<mark>Original language</mark>English

Abstract

The study investigates performance-based contracting in long term-supply relationships. Evidence in the context of supply relationships involving manufacturers of consumer and pharmaceutical products, service providers and grocery retailers indicates that the performance that companies buy and sell can be analyzed as specific combinations of effectiveness, efficiency and risk. While firms engage in a complex and time-consuming process to design and agree upon performance targets, incentive mechanisms and involved risks of buying and selling future performance, they often fail in achieving excellence in all performance targets.

Bibliographic note

This is the author’s version of a work that was accepted for publication in Industrial Marketing Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Industrial Marketing Management, 59, 2016 DOI: 10.1016/j.indmarman.2016.05.028