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

October 2018 Webinar - How Can Hackathons Accelerate Corporate Innovation?'

Oct 08, 2018

In this webinar, Myrna Flores presented the Alliance April paper on how hackathons can accelerate corporate innovation.

September 2018 Paper

Sep 24, 2018

September paper on 'Co-Creation in Practice: Objectives and Outcomes' by Katharina Greve, Veronica Martinez and Andy Neely

Land of Innovation Forum

Sep 23, 2018

Veronica delivered a presentation and a workshop at the 'Land of Innovation Forum' in Canacintra, Mexico.

Blockchain Results Delivered at Rolls Royce

Sep 20, 2018

Research project 'the impact of digital twins on the product development process' led by Veronica Martinez

Interview with Sander Kuik, Canon – for CSA Industry Day 2018

Sep 11, 2018

In a conversation with Sander Kuik from Canon we asked him about his planned presentation at the CSA Industry Conference on 3 October 2018, his thoughts on the theme of the conference, and his vision of the future.

View all news

Upcoming events

Shift to Services Executive Education Programme

Nov 07, 2018

IfM, Cambridge, UK

Ecosystems Strategy One Day Course

Feb 05, 2019

IfM, Cambridge

Upcoming events