Large-scale projects with digital performance-based contracting: the ultimate solution for governance control
by Kübra Ates; Cornelia Ebadi; Andreas H. Glas; Michael Eßig
International Journal of Integrated Supply Management (IJISM), Vol. 16, No. 2, 2023

Abstract: Large-scale projects are characterised by high task complexity, intense dynamics and uncertainties, and the involvement of numerous organisations. These characteristics provide the basis for governance problems such as conflicts of interest and information asymmetries. This study explores the impact of a transition from traditional contacting to performance-based contracting (PBC) on these challenges and the interplay between relational and contractual governance. In addition, this study explores how advanced digital technologies may help improve PBC's effect on governance. Both aims are addressed through an in-depth analysis of two case studies from large-scale German aerospace projects. The findings indicate that PBC can help enhance governance in large-scale projects by controlling the outcome and aligning goals. They also acknowledge the potential of behavioural control through advanced digital technologies that supply real-time information during service delivery. However, the supplier must be able to fully control the outcome for the approach to deliver the intended success.

Online publication date: Mon, 17-Apr-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Integrated Supply Management (IJISM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com