Information availability at the competitive bidding stage for service contracts

Kreye, Melanie E.; Newnes, Linda; Goh, Yee Mey

doi:10.1108/jmtm-05-2012-0059

Cited by 20 publications

(31 citation statements)

References 51 publications

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“…Many PSS providers have a manufacturing and thus production-focused background (Vandermerwe and Rada 1988, Kreye et al 2013, Peillon et al 2015. They thus often have a tradition of motivating and rewarding their employees based on measurable outputs in comparison to defined targets.…”

Section: Pss Provisionmentioning

confidence: 99%

Employee motivation in product-service system providers

Kreye

2016

Production Planning & Control

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This research investigates how intrinsic and extrinsic motivation factors contribute to employee motivation in providers of Product-Service Systems (PSS). Employee motivation determines the quality of the delivered service and is thus an area of great importance for PSS providers. We present rich case-based data collected through semi-structured interviews, a survey and secondary sources. The analysis showed the particularly high importance of intrinsic and individual motivation factors such as the fulfilling nature of the work and skill development showing the ownership and pride service employees took in their work. Further, the organisation needs to set the context of high employee motivation by enabling flexibility and performance feedback. Our research contributes to the literature by providing a first empirical study of employee motivation in PSS providers and thus providing important insights on the implementation of a servitisation strategy.

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Section: Pss Provisionmentioning

confidence: 99%

Employee motivation in product-service system providers

Kreye

2016

Production Planning & Control

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“…In addition, the investigation of one solution provider offered the advantage of selecting a polar extreme in the field, hence offering guidance and new insights (Eisenhardt, 1989). Especially for research in servitization, case studies are a suitable method to analyse the researched issues in-depth based on empirical observations (Kreye et al, 2013). …”

Section: Research Approach and Case Selectionmentioning

confidence: 99%

“…However, the majority of manufacturing companies who aim at following a servitization strategy fail in their attempts which can be due to missing or underdeveloped capabilities (Reinartz and Ulaga, 2008;Kreye et al, 2013). In particular, the development of contractual and relational capabilities is important for the success to meet new market conditions and realise emerging business opportunities (Martinez et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

Servitising manufacturers: the impact of service complexity and contractual and relational capabilities

Kreye

Roehrich

Lewis

2015

Production Planning & Control

114

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“…Previous investigations have found contradicting insights on the potential effect of the uncertainty arising from competition. Kreye et al (2013) found that the existence of competition can increase uncertainty perception at the competitive bidding stage because of the possibility of losing the PSS contract to a potential competitor. In contrast the research by Ballesteros-Pérez et al (2016) suggests that uncertainty perception may decrease because knowing the identity of possible competitors may make it easier to determine their possible pricing strategy.…”

Section: Uncertainty Perception In Pricing Pssmentioning

confidence: 99%

“…Finally, the participants were asked to list the risks or uncertainties that they found important for their decision making. Both terms were used interchangeably here to account for the close link in industrial understanding (Kreye et al 2013).…”

Section: <Please Include Figure 2 About Here>mentioning

confidence: 99%

Uncertainty perception in bidding for Product-Service Systems under competition

Kreye

Goh

Newnes

2018

Journal of Purchasing and Supply Management

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This research investigates what impact of uncertainty perception arising from the existence of competition has on the pricing decision for Product-Service Systems (PSS) under uncertainty. PSS provision is an increasingly important area for many businesses and competition increases cognitive pressures on providers even further. We present an experimental study with industrial costing and bidding experts from the defence and aerospace sector. The study consisted of an experimental set-up via two questionnaires which differed in the existence of competition in the bidding scenario. The findings showed that bidding decision makers changed their evaluation of the cost estimate due to the introduction of competition but kept their evaluations of the profit margin and price bids constant. Furthermore, the participants listed the relevant sources of uncertainty that influenced their decision-making process. This research contributes to the literature in two ways. First, our findings showed that predictions from current theory regarding decision-making of cost estimation and pricing are not confirmed when competitively bidding for PSS. Second, we show uncertainty sources that influenced the decision makers and identified p the importance of internal processes of the PSS provider and environmental uncertainty.

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Information availability at the competitive bidding stage for service contracts

Cited by 20 publications

References 51 publications

Employee motivation in product-service system providers

Employee motivation in product-service system providers

Servitising manufacturers: the impact of service complexity and contractual and relational capabilities

Uncertainty perception in bidding for Product-Service Systems under competition

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