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

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Value innovation mechanism of PBC Model under service dominant logic

Dai Yong   

  1. Business School, East China Normal University, Shanghai 200241, China
  • Received:2012-12-05 Revised:2013-11-06 Online:2014-07-25 Published:2014-07-15

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

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