Further Semiotic Perspectives on the Outcome-Based vs Performance-Based Semantic Dispute

Korkeamäki, Lauri

doi:10.1007/978-3-030-75771-7_9

Cited by 1 publication

(3 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the pay-per-service unit, the customer pays for the time units (or the number of hours the machine is deployed for) and the number of output units produced by the machine. More recent studies have used the terms pay-per-use (Gebauer et al, 2017;Uski et al, 2022) and availability OBC (Böhm et al, 2016;Grubic and Jennions, 2018;Korkeamäki, 2021) when the customer pays for time units. For example, the number of hours a tractor is used to extract fruits and vegetables from the field.…”

Section: Servitization and Outcome-based Contractsmentioning

confidence: 99%

“…For example, the number of hours a tractor is used to extract fruits and vegetables from the field. Whereas output OBC (Korkeamäki, 2021) and pay-per-output (Uski et al, 2022) are the terms used to denote the output units produced. For example, the number of copies photocopied using a photocopier machine.…”

Section: Servitization and Outcome-based Contractsmentioning

confidence: 99%

“…For example, the units of energy saved while using a generator are offered in OBC. Recent literature has used the terms economic OBC (Uski et al, 2022) and pay-per-outcome to denote functional results (Böhm et al, 2016;Grubic and Jennions, 2018;Korkeamäki, 2021).…”

Section: Servitization and Outcome-based Contractsmentioning

confidence: 99%

See 2 more Smart Citations

Challenges, Mitigation and Benefits of Outcome-based Contracts in Small and Medium-sized Machine Manufacturers: A Qualitative Exploratory Study

Uuskoski,

Mittal,

Menon

et al. 2023

Int. j. math. eng. manag. sci.

View full text Add to dashboard Cite

Outcome-based contracts (OBCs) offer machine outcomes while maintaining machine ownership with the manufacturer. To this end, the scientific literature lacks systematic studies on sharing insights from the perspective of small and medium-sized enterprise (SME) machine manufacturers (MMs) while implementing OBCs. We interviewed four SME MMs that have successfully offered OBCs. Further, we use exploratory multiple-qualitative case study research. We identified that SME MMs face various challenges, such as ownership of expensive machines, the long payback period of OBCs, protection of IP, the need for constant innovation, and delivering the required performance while offering OBCs. Further, we identified that SME MMs have identified ways to mitigate these challenges, such as involving third parties to own the machine and ensuring earnings by including separate contracts for other activities such as installation, maintenance, training of the employees working on machines, and logistics, to overcome the challenge of the long payback period of OBCs. Additionally, we identified various SME MM-related benefits from OBCs, such as entering competitive markets, optimizing the cost of operating the machine, novel efficient ways of selling and marketing machines, avoiding money laundering and legal issues, and reducing investment through recycling the machine and its components that SME MMs have while offering OBCs. We share insights into how SME MMs offer OBCs, which typically involve significant risks, by empirically studying the challenges, mitigation of challenges, and benefits of offering OBCs.

show abstract