Missing performance management and measurement aspects in performance-based contracting

Andreas Herbert Glas · Florian U. Henne · Michael Eßig

49 citations0/0 files storedInternational Journal of Operations & Production Management

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Service and Product Innovation Accounting and Organizational Management Outsourcing and Supply Chain Management

Abstract

Purpose Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service performance with the aim of providing monetary incentives to safeguard possible outcomes as much as possible for the PBC customer. Performance measurement and its management are crucial for PBC success and, in particular, for the pay-for-performance link. However, the literature on PBC performance management is rather sparse, and there has been no systematic review on the topic. Thus, the purpose of this paper is to fill that gap and to present a comprehensive and systematic review of performance measurement and management in the PBC context. Design/methodology/approach The paper builds on a literature review based on a sample of 102 subject-relevant articles from academic journals. The content analysis follows a two-step procedure. First, the articles are coded following a process-based research framework. Second, the content of each process step is assessed in a qualitative text analysis. Findings The results show a surprising scarcity of papers that explicitly address performance management topics in the context of PBC. Only the topics of performance specification and performance indicators are broadly addressed, whereas in all of the other areas, e.g., strategic alignment, data capture and reporting, only limited specific findings could be found. Research limitations/implications The paper concludes that future research on performance management in PBC should expand its theoretical framework and empirical efforts in four specific proposed directions. Originality/value The paper provides an up-to-date review that is focused on performance management and measurement in the emerging context of PBC.

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References

1984Content Analysis: An Introduction to its Methodology.2003Towards a Methodology for Developing Evidence‐Informed Management Knowledge by Means of Systematic Review 1992The balanced scorecard : measures that drive performance 1992The balanced scorecard--measures that drive performance.2009The impact of supply chain integration on performance: A contingency and configuration approach 1995Performance measurement system design 2004Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet 2009Producing a systematic review.

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