| Titre : | Impact of performance-based contracting on product reliability : An empirical analysis (2012) |
| Auteurs : | Jose A. Guajardo, Auteur ; Morris A. Cohen, Auteur ; Sang-Hyun Kim, Auteur |
| Type de document : | Article : texte imprimé |
| Dans : | Management science (Vol. 58 N° 5, Mai 2012) |
| Article en page(s) : | pp. 961-979 |
| Note générale : | Management |
| Langues : | Anglais |
| Tags : | Reliability Maintenance repairs Empirical operations management Supply chain contracting Aerospace industry |
| Résumé : | Using a proprietary data set provided by a major manufacturer of aircraft engines, we empirically investigate how product reliability is impacted by the use of two different types of after-sales maintenance support contracts: time and material contracts (T&MC) and performance-based contracts (PBC). We offer a number of competing arguments based on the theory of incentives that establish why product reliability may increase or decrease under PBC. We build a two-stage econometric model that explicitly accounts for the endogeneity of contract choices, and find evidence of a positive and significant effect of PBC on product reliability. The estimation of our model indicates that product reliability is higher by 25%–40% under PBC compared to under T&MC, once the endogeneity of contract choice is taken into account. Our results are consistent with two mechanisms for reliability improvement under PBC: more frequent scheduled maintenance and better care performed in each maintenance event. |
| DEWEY : | 658 |
| ISSN : | 0025-1909 |
| En ligne : | http://mansci.journal.informs.org/content/58/5/961.abstract |
