VIII.Sumo, R., Van der Valk, W., Van Weele, A.J. and Bode, C. (2016)
8 important questions on VIII.Sumo, R., Van der Valk, W., Van Weele, A.J. and Bode, C. (2016)
What is the conclusion of Sumo?
Though authors have suggested that PBCs have a positive effect on innovation, they have not explained how this effect may occur. A PBC is a contract that the parties have intentionally left incomplete, and it has two characteristics: low term specificity and pay-for-performance.
What are the founded relationships?
term specificity has an inverse-U effect on incremental innovation, meaning that to achieve incremental innovation the contract should contain a certain degree of term specificity, but the contract should not be too detailed.
Second, in line with our theoretical model, we found that pay-for- performance has a stronger positive effect on radical than on incremental innovation.
Third, we found that the partner’s degree of risk-aversion negatively moderates the relationship between pay-for- performance and incremental and radical innovation. This effect was found to be stronger for radical than for incremental innovation.
What is the conclusion related to incremental innovation?
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What is the conclusions related to radical innovation?
What is ment with term specificity?
What are the differences between PBCs and FP, CR contracts
- All contracts types have an equal duration of about 5 years, contracts with longer duration are typically FP and CR contracts
- PBCs on average represent higher financial value than FP and CR contracts
- PBCs are mainly highly-tailored contracts
- Design of PBCs is more a collaborative effort than design of FP and CR contracts
- Suppliers under PBCs have more freedom to determine the how and what of service delivery
- The governance of/collaboration underlying the contract is usually more detailed for PBCs
- PBCs usually result in higher levels of innovation and derivative results.
What are relationship quality succes factors?
Pro-activeness
Structural communication in frequent formal meeting
More informal communication
Share objecties, vision and approach
Transparency with expectations and experiences
Three functions of contracts:
- As a safeguard mechanism
- As coordination mechanism
- As an adaption mechanism
The question on the page originate from the summary of the following study material:
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