ABSTRACT
Although there is a growing body of research exploring the transition to a more service-based orientation in complex product markets, the majority of this literature adopts what might be classifi ed as a ‘manufacturer-active’ point of view; that is it explores the challenges faced by fi rms (e.g. aircraft & capital equipment manufacturers, building fi rms, etc.) seeking to ‘sell’ their re-conceptualized streams of revenue. There has been much less research exploring the challenges associated with the transition from traditional asset acquisition processes to ‘buying’ or procuring complex performance (PCP)—here defi ned as a combination of transactional and infrastructural complexity. This chapter explores the macro-and micro-economic context to this specifi c problem space and develops a preliminary conceptualisation of the process of PCP. It draws on two principle literatures: one focused on the boundary conditions fi rms consider when choosing to ‘make or buy’ a range of different activities from the market (e.g. Fine and Whitney, 1999; Gilley and Rasheed, 2000; Williamson, 1985; Grover and Malhotra, 2003) and the other on public procurement (e.g. Thai and Piga, 2006; Knight et al., 2007) and Public-Private Partnerships in particular (Broadbent and Laughlin, 2005; Froud, 2003). Three distinct governance challenges are presented: (1) contractual, (2) relational, and (3) integration. The chapter explores the implications of the conceptual model by developing a range of research propositions that are intended to be the foundations for future research.
