Performance-based contracting with digitally-enabled performance information: Exploratory cases from the manufacturing sector

Luis Prato*, Finn Wynstra, Wendy van der Valk

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

This paper explores, from a customer and supplier perspective, the impact of performance information as enabled by digital technologies to the notions of outcome measurability and information asymmetry. Our preliminary results show that improved outcome measurability provided certain advantages for the achievement of an adequate interplay between performance, incentives and risk. Furthermore, the transparency of these measurements may minimize classical agent-principal problems. Nevertheless, findings also suggest digitally-enhanced performance information per se does not lead to more effective contracts and better customer-supplier relations, as mistrust in technology and differences in the interpretation of this information appear to coexist in this environment.
Original languageEnglish
Title of host publicationProceedings of the 27th EurOMA Conference
Subtitle of host publicationManaging Operations for Impact
Place of PublicationCoventry
PublisherUniversity of Warwick, Warwick Business School
Pages1306-1315
Publication statusPublished - Jun 2020
EventManaging Operations for Impact: EUROMA Conference 2020 - University of Warwick, Warwick, United Kingdom
Duration: 29 Jun 202030 Jun 2020

Conference

ConferenceManaging Operations for Impact
CountryUnited Kingdom
CityWarwick
Period29/06/2030/06/20

Keywords

  • Manufacturing
  • Digital transformation
  • Performance-based contracting

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