Author: Jong Arjan de Smit Klaas
Publisher: Emerald Group Publishing Ltd
ISSN: 1355-2511
Source: Journal of Quality in Maintenance Engineering, Vol.18, Iss.2, 2012-05, pp. : 171-182
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Abstract
Purpose ‐ The purpose of this paper is to demonstrate that collaborative contracts enable inter-organisational quality systems. Design/methodology/approach ‐ The research compares performance contracts with collaborative contracts, a new contract type whereby the contract parties align their objectives. The study uses game theory and describes the contract types as mechanism designs for comparison. The mechanisms are validated with a case study. The utility of the contract types is verified with Monte Carlo simulations using expert opinions. Findings ‐ The research demonstrates that, under certain conditions, collaborative contracts enable inter-organisational quality systems by facilitating the exchange of information between the contract parties and investments in inter-organisational work processes. Practical implications ‐ The use of collaborative contracts between an operator of a technical system and a maintenance organisation leads to improvements in inter-organisational work processes, reducing maintenance costs and improving the availability of the technical system; thereby increasing the utility of all contract parties. Originality/value ‐ The collaborative contract is a new contract type for maintenance services and the research method provides a new approach to enable inter-organisational quality systems.