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Identifying risk and its impact on contracting through a benefit based-model framework in business to business contracting: case of the defence industry

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Ng, Irene C. L. and Yip, Nick K. T. (2009) Identifying risk and its impact on contracting through a benefit based-model framework in business to business contracting: case of the defence industry. In: 1st CIRP Industrial Product-Service Systems (IPS2) Conference, Cranfield University, Cranfield, U.K., Apr 1-2, 2009. Published in: Proceedings of the 1st CIRP Industrial Product-Service Systems (IPS2) Conference pp. 207-215.

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Abstract

Two defence contracts for availability are studied in the attempt to better understanding the provision of service in a maintenance, repair and overhaul environment that is contracted on the performance of the equipment, rather than merely providing equipment. The nature of the contract changes the dynamics of the delivery, bringing behavioural issues into the forefront, with both customer and firm focused on value cocreation, rather than each party’s contractual obligation. Our study provides a customer focused approach that exposes gaps in the way organizations approach their service provision in MRO. We argue that customer involvement and behavioural issues in the co-creation process has to be factored into the design and delivery of traditional MRO delivery systems. This paper uncovers four areas that pose risks to performance based contracts and are crucial in the design of services under such a contractual environment and provides a research agenda for future studies in this area.

Item Type: Conference Item (Paper)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
Divisions: Faculty of Science > WMG (Formerly the Warwick Manufacturing Group)
Journal or Publication Title: Proceedings of the 1st CIRP Industrial Product-Service Systems (IPS2) Conference
Publisher: Cranfield University
ISSN: ISBN: 978-0-9557436-5-8
Date: 1 April 2009
Page Range: pp. 207-215
Status: Not Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Conference Paper Type: Paper
Title of Event: 1st CIRP Industrial Product-Service Systems (IPS2) Conference
Type of Event: Conference
Location of Event: Cranfield University, Cranfield, U.K.
Date(s) of Event: Apr 1-2, 2009
Related URLs:
URI: http://wrap.warwick.ac.uk/id/eprint/47703

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