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

Webinar - Digital Business Transformation and Strategy

Feb 12, 2018

Webinar on 'Digital Business Transformation and Strategy: What do we know so far?' by Mariam Helmy Ismail Abdelaal

Wearable Sensor Technology and Business

Jan 25, 2018

Contextually Defined Postural Markers Reveal Who’s in Charge: Evidence from Small Teams Collected with Wearable Sensors by Julius Dietzel, R. Elena Francu, Benjamin Lucas, and Mohamed Zaki

Webinar - Big Data Analytics Architecture for Businesses

Jan 16, 2018

15 January 2018 - Big Data Analytics Architecture for Businesses - Open Source Perspective - Kerem Kayabay, Mert Golkalp, Mohamed Zaki

December Paper - Buyers Dependence and Financial Performance

Dec 14, 2017

December 2017 Paper by Ornella Benedettini and Andy Neely on 'Does buyers’ dependen­­ce translate into financial performance? An empirical analysis of manufacturer-service provider relationships­­'

Webinar - Outcome-oriented Contracts and Outsourcing relationships

Dec 11, 2017

Webinar by Florian Urmetzer on 'Using outcome-oriented contracts to foster performance improvements in logistics outsourcing relationships', held on 11 December 2017

View all news

Upcoming events

Ecosystems Strategy One Day Course

Feb 27, 2018

IfM, Cambridge

Shift to Services Executive Education Programme

May 09, 2018

IfM, Cambridge, UK

Upcoming events