Value innovation mechanism of PBC Model under service dominant logic

PDF(1 KB)

Science Research Management ›› 2014, Vol. 35 ›› Issue (7) : 67-74.

Dai Yong

Author information +

History +

Abstract

Performance based contract (PBC), as a new after-sales model, has already had a far-reaching impact on service supply chain with its increasing popularity in the research of supply chain. This paper attempts to analyze the new modes of PBC in the view of service dominant logic including PBC value proposition and value delivery. It further discusses the creative mechanism of value proposition of recovery, reliability, and performance achieved through value chain coupling, network alignment, and embedding as well as the innovation of value delivery through integration of customers' resources and interaction of information, personnel and material during the process. Finally a case study of Rolls Royce is put forward in order to provide reference for domestic related research.

Key words

PBC / service dominant logic / after-sales business model / value innovation mechanism / manufacturing equipment

Cite this article

EndNote

Ris (Procite)

Bibtex

Download Citations

Dai Yong. Value innovation mechanism of PBC Model under service dominant logic[J]. Science Research Management. 2014, 35(7): 67-74

References

[1] Cohen,M.A.,N.Agrawal,V.Agrawal.Winning in the Aftermarket.Harvard Business Review[J].2006,84(5):129-138. [2] Defense Acquisition University.Performance Based Logistics:A Program Manager's Guide [M].Washington:Defense Acquisition University Press,2005:1-3. [3] Ng,I.C.L.,Nudurupati,S.Outcome-based service contracts in the defense industry:mitigating the challenges[J].Journal of Service Management,2010,21(5):656-674. [4] Kim,S.H.,Cohen,M.A.,Netessine,S.Contracting for Infrequent Restoration and Recovery of Mission-Critical Systems[J].Management Science,2010,56(9):1551-1567. [5] Jin tongdan,Wang P.Planning performance based contracts considering reliability and uncertain system usage[J].Journal of the Operational Research Society,2012,63(2):1467-1478. [6] ner,K.B.,Kiesmuller,G.P.,Houtum,G.J.Optimization of component reliability in the design phase of capital goods[J].European Journal of Operation research 2010,205(3):615-624. [7] Lay,G.,Schroeter,M.and Biege,S.,Service-based business concepts:a typology for business-to-business markets[J].European Management Journal,2009,27(6):442-455. [8] Hypko,P.,M.Tilebein and R.Gleich.Clarifying the concept of performance-based contracting in manufacturing industries[J].Journal of Service Management,2010,21(5),625-655. [9] Randall,W.S.,Pohlen,T.L.and Hanna,J.B.Evolving a theory of performance based logistics using insights from service dominant logic[J].Journal of Business Logistics,2010,31(2):35-62. [10] Cohen.Product Performance Based Business Models:A Service Based Perspective .Proceedings HICCS-45,2012. [11] Hypko,P..Benefits and uncertainties of performance-based contracting in manufacturing industries.An agency theory perspective[J].Journal of Service Management,2010,21(4):460-489. [12] Jin Tongdan,Tian Yu.Optimizing reliability and service parts logistics for a time-varying installed base[J].European Journal of Operational Research,2012,218(1):152-162. [13] Mirzahosseinian.H,R.Piplani.A study of repairable parts inventory system operating under performance-based contract[J].European Journal of Operational Research,2011,214(2):256-261. [14] Tukker,A.and Tischner,U.New business for old europe:product-service development,competitiveness and sustainability[M].2006,Sheffield,Greenleaf Publishing. [15] Pawar,K.S.,Beltagui,A.and Riedel.The PSO triangle:designing product,service and organisation to create value[J].International Journal of Operations & Production Management,2009,29(5):468-493. [16] Vargo,S.L.and Lusch,R.F.The four service marketing myths:remnants of the goods-based,marketing model[J].Journal of Service Research,2004,6(4):324-335. [17] Vargo,S.L.and Lusch,R.F.Service dominant logic:continuing the evolution[J].Journal of the Academy of Marketing Science,2008,36(1):1-10. [18] Smith,Laura A.,Ng,Irene C.L.and Maull,Roger.The three value proposition cycles of equipment-based service[J].Production Planning & Control,2012,23(7):553-570. [19] Guajardo,J.,Cohen M.A.,S.H.Kim,S.Netessine.Impact of performance-based contracting on product reliability:An empirical analysis[J].Management Science,2012,58(5):961-979. [20] Irene Ng,Glenn Parry,Laura Anne Smith,Roger S Maull.Transitioning from a goods-dominant to a service-dominant logic:Visualising the value proposition of rolls-royce [J].Journal of Service Management,2012,23(3):416-439. Title: Dai Yong (Business School, East China Normal University, Shanghai 200241, China)