Papers by Kostas Selviaridis
Advances in Logistics, Operations, and Management Science, 2013
Supply Chain Management an International Journal, Apr 28, 2015
Collaborative research is rewarding but, compared to the dominant survey-based model of empirical... more Collaborative research is rewarding but, compared to the dominant survey-based model of empirical research, very messy. We report on two case-study based projects, examining how the original research question and research design were adapted to take account of and take advantage of the emerging reality. The first study was originally intended to explore supply-chain flexibility in three sectors, aerospace, rail and truck manufacturing. However, we found that the chains were linked through common subcontractors, and unforeseen network-level and comparative analysis became possible. In the second study, on third-party logistics, the prime collaborator didn't want us to work with any of their direct competitors. While this compromised the design somewhat, it also led to a much deeper relationship with the prime collaborator, and a more critical reflection on the rationale for the research design. We discuss the implications of this type of emergent research design for practitioners and academics.
Journal of Purchasing and Supply Management, Sep 1, 2010
This paper offers insights about the dynamics of business service exchanges. We draw on the inter... more This paper offers insights about the dynamics of business service exchanges. We draw on the interaction approach, contracting theory and the notion of qualification from economic sociology to develop an analysis frame for such dynamics. We then apply this frame to a single, longitudinal case study. Contrary to the extant service supply literature assuming that service definitions remain (or should remain) fixed throughout the purchasing process, our findings suggest that, under high uncertainty conditions, the service exchange object is (re)shaped through iterative cycles of stabilisation and destabilisation. This study also reveals a connection between service definition and relationship governance dynamics-uncertainty and opportunism risks related to service destabilisation can be managed through dynamic deployment of relational, contractual and economic mechanisms. This paper also contributes to our understanding of the contract as basis for interaction and openness and offers an extension of qualification theory to complex business-to-business (B2B) service settings.
International Journal of Physical Distribution & Logistics Management, 2015
ABSTRACT Purpose – The purpose of this paper is to explore key challenges of adopting, designing ... more ABSTRACT Purpose – The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited. Design/methodology/approach – A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters. Findings – Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes. Research limitations/implications – The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management. Practical implications – The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome. Originality/value – The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.
This paper explores the role(s) of contracting in the formation and development of service exchan... more This paper explores the role(s) of contracting in the formation and development of service exchange relationships. Based on review and synthesis of industrial networks and contracting theory, a preliminary conceptual framework is developed to argue that contracting can be conceived as a means of stabilising and changing/adapting service exchange relationships, particularly in terms of their associated activity and resource structures. A single, exploratory case study in the construction consultancy industry context is conducted to test the conceptual frame. Preliminary findings appear to provide some support for the main theoretical conjecture – contracting has a stabilising function since it facilitates a common understanding of service activity and resource requirements at the early stages of exchange relationship formation and it explicates and codifies the exchange object. At the same time, contracting fulfils a changing function by allowing for certain activity and resource ada...
Performance-based contracting emphasises outcomes and results when procuring products, aligning b... more Performance-based contracting emphasises outcomes and results when procuring products, aligning buyer and supplier incentives
Supply Chain Management: An International Journal, 2014
Supply Chain Management: An International Journal, 2015
International Journal of Production Research, 2014
This paper aims to provide a review and synthesis of the performance-based contracting (PBC) lite... more This paper aims to provide a review and synthesis of the performance-based contracting (PBC) literature across academic disciplines. It also seeks to examine how the operations and supply management (OSM) discipline in particular relates to PBC studies in other study fields. The research is based on a systematic literature review of 241 peer-reviewed articles across disciplines, published between 1985 and 2014. A classification framework of PBC research is proposed, addressing key aspects of PBC design and management: performance specification and evaluation, the design of incentives and their impact on supplier behaviour and risks allocation depending also on the risk attitudes of buyers and suppliers. The comparative analysis of literature by discipline helps identify current empirical and theoretical limitations of relevant OSM studies. The paper concludes that future OSM research should expand its theoretical framework and empirical focus to better understand PBC design and management. Eight specific suggestions for future OSM research are offered, e.g. examining the potential of PBC as means for managing sustainability and innovation goals of supply chains. The paper helps advance OSM research in this area by providing a structured overview of definitions, theories, conceptual frames, methods and empirical studies from other disciplines.
Collaborative research is rewarding but, compared to the dominant survey-based model of empirical... more Collaborative research is rewarding but, compared to the dominant survey-based model of empirical research, very messy. We report on two case-study based projects, examining how the original research question and research design were adapted to take account of and take advantage of the emerging reality. The first study was originally intended to explore supply-chain flexibility in three sectors, aerospace, rail and truck manufacturing. However, we found that the chains were linked through common subcontractors, and unforeseen network-level and comparative analysis became possible. In the second study, on third-party logistics, the prime collaborator didn't want us to work with any of their direct competitors. While this compromised the design somewhat, it also led to a much deeper relationship with the prime collaborator, and a more critical reflection on the rationale for the research design. We discuss the implications of this type of emergent research design for practitioners and academics.
Supply Chain Management: An International Journal, 2014
Purpose -The performance of service supply chains in terms of service levels and cost efficiency ... more Purpose -The performance of service supply chains in terms of service levels and cost efficiency depends not only on the effort of service providers but also on the inputs of sub-contractors and the customer. In this sense, performance-based contracting (PBC) entails increased financial risk for providers. Allocating and managing risk through contractual relationships along the service supply chain is a critical issue, and yet there is scant empirical evidence regarding what factors influence, and how, provider willingness to bear PBC-induced risk. This paper aims to address this gap. Design/methodology/approach -The paper draws on agency theory and two cases of logistics service supply chains, in the food retail and automotive industries respectively, to identify key influencing factors. Data were collected through semi-structured interviews with 30 managers of providers and sub-contractors and review of 35 documents, notably contracts and target letters. Findings -Four influencing factors were found: performance attributability within the service supply chain; relational governance in service supply chain relationships; provider risk and reward balancing; and provider ability to transfer risk to sub-contractors. The propositions developed address how these factors influence provider willingness to bear PBC-induced risk.
Maritime Economics & Logistics, 2008
The need to reduce logistics costs is well recognised, often, however, without identification of ... more The need to reduce logistics costs is well recognised, often, however, without identification of the factors that could contribute to such a reduction. Third-party logistics (3PL) is an augmenting activity of the transport system, which can strengthen the cooperation of different transport modes. As a new practice, conditions of success are driven from personal or empirical situations, often hiding the real causes. To tackle this problem, a major survey has been conducted among both buyers and suppliers of logistics services in the United Kingdom. From the survey, several key findings of customer perceptions of logistics services provided by 3PL companies were derived. Results of the survey show a clear difference in points of view between suppliers and buyers. The results of the survey shed light on how the architecture of logistics outsourcing can be improved. Maritime Economics & Logistics (2008) 10, 380–392. doi:10.1057/mel.2008.12
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Papers by Kostas Selviaridis