Purpose – The aim of the paper is to identify and review the impact and challenges of new contractual arrangements on UK military procurement and other limited or oligopolistic markets. Design/methodology/approach – The unit of analysis is the large‐scale procurement programme. Two cases of major military platforms (naval and air defence) examine through‐life maintenance or “contracting for availability” and build theory on procuring complex performance (PCP). Propositions are developed from the literature then tested and extended from the case analysis, supported by 35 interviews from buyer and supplier representatives. Findings – Examining UK military platform procurement reveals a perspective not present in fast moving high volume supply chains. In oligopolistic markets such as defence, the Ministry of Defence (MOD) represents a market of one, seeking ambitious and non‐incremental innovation from the prime contractor during the procurement process. The new contractual arrangements show an increasing shift in responsibility to the prime contractor who coordinates service support and supply chain incentivisation over extended, often multi‐decade platform lifecycles. Research limitations/implications – The cases were conducted separately and later compared. Whilst based on defence sources, the paper concludes with general recommendations for all public‐private complex procurements and seeks to explore other industry sectors as part of further research into PCP. Originality/value – Examined from a theoretical and practical perspective, the cases reveal the challenges facing procurement in major public‐private projects. The changing role identified reflects extended timescales and the quasi‐market military procurement environment, compounded by current economic and politically charged conditions. Procurement by default increasingly plays a new shaping role in large‐scale programme management driven by outcome‐based contracting. Customers such as the MOD must re‐evaluate their role under these new contractual arrangements, providing leadership and engaging with future contracting capability and innovation.
International Journal of Operations & Production Management – Emerald Publishing
Published: Jan 28, 2014
Keywords: Innovation; Supply chains; Incentives; Outsourcing; Markets; Oligopoly
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera