Collaborative contracts for inter‐organisational quality systems

Abstract

Purpose – The purpose of this paper is to demonstrate that collaborative contracts enable inter‐organisational quality systems. Design/methodology/approach – The research compares performance contracts with collaborative contracts, a new contract type whereby the contract parties align their objectives. The study uses game theory and describes the contract types as mechanism designs for comparison. The mechanisms are validated with a case study. The utility of the contract types is verified with Monte Carlo simulations using expert opinions. Findings – The research demonstrates that, under certain conditions, collaborative contracts enable inter‐organisational quality systems by facilitating the exchange of information between the contract parties and investments in inter‐organisational work processes. Practical implications – The use of collaborative contracts between an operator of a technical system and a maintenance organisation leads to improvements in inter‐organisational work processes, reducing maintenance costs and improving the availability of the technical system; thereby increasing the utility of all contract parties. Originality/value – The collaborative contract is a new contract type for maintenance services and the research method provides a new approach to enable inter‐organisational quality systems.

Citation

de Jong, A. and Smit, K. (2012), "Collaborative contracts for inter‐organisational quality systems", Journal of Quality in Maintenance Engineering, Vol. 18 No. 2, pp. 171-182. https://doi.org/10.1108/13552511211244201