Benefits and uncertainties of performance‐based contracting in manufacturing industries

摘要: Purpose – In view of a lack understanding the consequences performance‐based contracting (PBC), this paper aims to reveal deeper insights into mechanisms inherent PBC and explore which benefits uncertainties may result for providers customers.Design/methodology/approach Conducting comprehensive literature review drawing on from agency theory as framework, auhtors analyzed broad range academic publications developed testable propositions provider's customer's perspective.Findings With PBC, in comparison conventional selling supporting machinery or equipment, manufacturers are more likely acquire customers highly innovative technologies, increase their profit, improve customer loyalty. Manufacturers, however, have deal with uncertain revenues costs affect profit. The receive increased performance at decreased co...