skip to primary navigationskip to content

Cambridge Service Alliance

developing new understanding and approaches to complex service systems

Studying at Cambridge

 

Performance Based Contracts

Risks of Performance-based Contracts – A Social Capital Perspective

Performance-based contracts (PBC) are contracts where the “customer’s focus is on contracting a performance goal or outcome rather than on how to achieve this goal” (Hypko et al.,2010). 

The aim of this research is to study the effects of social capital (generally but partially, trust and interactions between suppliers and customers) on risks in PBC compared with risks in traditional, transactional contracts (Behaviour-Based Contracts or BBC).

Hypotheses

 

Research methods

Expected results

  • Relationship: Determine the relationship between social capital and suppliers’ risks in performance-based contracts and transactional contracts.
  • Comparison: of the effects of social capital on risks in performance-based contracts and in transactional contracts.
  • Prediction: Identify which dimension (structural, cognitive or relational) and which level (firm level, individual level or contract level) of social capital have the most important effects on risks.

Benefits to industry

Gain a better understanding of:

  • Risks of PBC – better risk management
  • Customers’ concerns about risks – better customer satisfaction
  • Effects of social capital on risks – better relationship management.

 

Academics and companies who are interested in the project are warmly welcomed for discussion and participation.

Contact: Jinghen Hou

RSS Feed Latest news

Seminar on Co-Creation in Living Labs - Italy

May 18, 2017

Seminar on 'Co-creation in Living Labs: An Interorganisational Perspective' at Carlo Cattaneo University in Castellanza, Italy.

New Executive Courses on Ecosystems Strategy

May 15, 2017

We are pleased to announce a new executive programme on Ecosystems Strategy, to be held in Cambridge on 22 November 2017

Bridging the Co-Creation Gap

May 15, 2017

May Paper Release on ‘Bridging the Co-creation Gap Between Co-creators, Companies and Living Lab’ by Katharina Greve, Veronica Martinez and Andy Neely

Webinar - A Process for B2B Partnerships

May 08, 2017

8 May 2017 - A Process for B2B Partnerships: Designing to deliver capability across companies

Alliance Visitor - Martin Fritze

May 01, 2017

Welcome to Alliance Visitor, Martin P Fritze, from the Institute for Marketing and Service Research at University of Rostock in Germany.

View all news

Upcoming events

Cambridge Service Week 2017 - Academic Conference

Oct 05, 2017

IfM, Cambridge, UK

Cambridge Service Week 2017 - Industry Conference

Oct 10, 2017

Moller Centre, Cambridge, UK

Cambridge Service Week 2017 - Partners Day

Oct 11, 2017

Moller Centre, Cambridge, UK

Upcoming events