Impact of Performance-Based Contracting on Product Reliability: An Empirical Analysis

被引：142

作者：

Guajardo, Jose A. ^{[1
]}

Cohen, Morris A. ^{[1
]}

Kim, Sang-Hyun ^{[2
]}

Netessine, Serguei ^{[3
]}

机构：

[1] Univ Penn, Wharton Sch, Philadelphia, PA 19104 USA

[2] Yale Univ, Yale Sch Management, New Haven, CT 06511 USA

[3] INSEAD, F-77305 Fontainebleau, France

来源：

MANAGEMENT SCIENCE | 2012年 / 58卷 / 05期

关键词：

reliability; maintenance repairs; empirical operations management; supply chain contracting; aerospace industry; INSURANCE MARKETS; SELECTION; SPECIFICATION; ENDOGENEITY;

D O I：

10.1287/mnsc.1110.1465

中图分类号：

C93 [管理学];

学科分类号：

12 ; 1201 ; 1202 ; 120202 ;

摘要：

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.

引用

页码：961 / 979

页数：19

共 54 条

[1] Endogenous matching and the empirical determinants of contract form [J].

Ackerberg, DA ;

Botticini, M .

JOURNAL OF POLITICAL ECONOMY, 2002, 110 (03) :564-591

[2]

[Anonymous], 2005, Contract theory

[3]

Bijwaard G. E., 2009, CAUSAL ANAL POPULATI, P111

[4]

Business Wire, 2008, BUSINESS WIRE 1119

[5]

Cachon GP, 2003, HDBK OPER R, V11, P229, DOI 10.1016/s0927-0507(03)11006-7

[6]

Cameron A. C., 2005, Microeconometrics: Methods and Applications

[7]

Chiaporri P.-A., 2003, ADV EC ECONOMETRICS, P115

[8]

Clark N., 2010, NY TIMES 1105

[9]

Cohen MA, 2006, HARVARD BUS REV, V84, P129

[10] A supplier's optimal quantity discount policy under asymmetric information [J].

Corbett, CJ ;

de Groote, X .

MANAGEMENT SCIENCE, 2000, 46 (03) :444-450

← 1 2 3 4 5 6 →