Effects of digital technologies on information asymmetry under performance-based contracting (PBC): An exploratory study in digitally enabled manufacturing environments

Luis Prato*, Finn Wynstra, Wendy van der Valk

*Corresponding author for this work

Research output: Contribution to conferencePaperOther research output

Abstract

This paper explores the impact of digital technologies in reducing information asymmetry under performance-based contracts. We adopted an agency-theoretical lense to complete an exploratory study of two cases, based on sixteen semi-structured interviews.Our preliminary findings suggest that digital technologies enhance the measurability of performance outcomes and subsequently the availability of performance information. Nevertheless, we shed lights on other emerging factors - common methodologies, procedures and responsibilities regarding measurement activities - that still pose a challenge for organisations aiming to reduce information asymmetry in such agency relations.
Original languageEnglish
Number of pages10
Publication statusAccepted/In press - 30 Apr 2021
EventManaging the “new normal”: The future of Operations and Supply Chain Management in unprecedented times: 28th EurOMa conference - Berlin, Germany
Duration: 4 Jul 20217 Jul 2021

Conference

ConferenceManaging the “new normal”: The future of Operations and Supply Chain Management in unprecedented times
CountryGermany
CityBerlin
Period4/07/217/07/21

Keywords

  • Performance-based contracting
  • Data
  • Manufacturing

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