Effects of performance-based contracts on innovation in inter-organizational relationships
| Autor: | Sumo, R., van der Valk, W., van Weele, A.J., Bode, C., Humphreys, J. |
|---|---|
| Přispěvatelé: | Department of Management, Research Group: Information & Supply Chain Management |
| Jazyk: | angličtina |
| Rok vydání: | 2014 |
| Předmět: | |
| Zdroj: | Academy of Management Proceedings (AOM 2014): The Power of Words Academy of Management Proceedings (AOM 2014) |
| DOI: | 10.5465/ambpp.2014.130 |
| Popis: | Recent contributions suggest that a specific type of contract that has intentionally been left incomplete, the performance-based contract (PBC), fosters innovation in inter-organizational relationships. Studies on PBCs are mostly context-specific and have hardly empirically demonstrated their effects on performance outcomes. We study the effects of PBCs on innovation by means of a survey study. More specifically, we investigate how the two main features of PBCs, i.e., low term specificity and rewards being tied to performance (i.e., pay-for-performance), affect incremental and radical innovation using data on 106 inter-organizational relationships from the Dutch maintenance industry. We find that term specificity is inverse-U related to incremental innovation, but not related to radical innovation. Pay-for-performance positively affects both, incremental and radical innovation. Finally, the partner's degree of risk-aversion negatively affects incremental and radical innovation. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|