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Purpose
The military of today depends on the availability and readiness of high-technology weapon systems. As the military often has to focus on core tasks (the usage of systems), logistics and support tasks are outsourced to industry, which means that industrial suppliers gain importance for making weapon systems available and mission ready. However, companies are profit-maximizing and invest their best resources in the most promising business areas, which might be clients other than the (domestic) military customer. This raises the question of how the military can ensure that the defense industry provides the best performance: preferential treatment for the military. The purpose of this study is to investigate preferential treatment in the specific context of defense.


Design/methodology/approach
This paper reports on the examination of factors influencing preferential treatment for the military. The analysis uses structural equation modeling and data from a sample of German defense suppliers.


Findings
The results show that the perceived customer attractiveness has a strong effect on preferential customer treatment. Attractiveness is influenced by trust, commitment and a comparison with other customers.


Research limitations/implications
There are several implications for defense theory and practice, including the need for further consideration of relational in contrast to transactional practices in military–industrial supply collaboration, as these seem highly relevant for getting the best resources for producing and maintaining weapon systems. In addition, increasing customer attractiveness, in particular if the military lacks a domestic defense industry base, is proposed.


Originality/value
The findings are based on a focus sample of only defense suppliers. This paper transfers the industrial discussion about the buyer–supplier relationships and preferential customer treatment to the defense logistics research context.

Die aktuelle sicherheitspolitische Lage mit neuen Krisen und zwischenstaatlichen Kriegen führt zu hohen Investitionen in die Streitkräfte (u.a. 100 Mrd. Euro Sondervermögen für die Bundeswehr). Damit rückt ein eigentlich altes Thema erneut in den Fokus: Das "Ressourcenmanagement in Militärorganisationen" ist ein vielschichtiges Thema an der Schnittstelle politisch-ethischer, militärisch-operationeller und ökonomisch-rationaler Disziplinen. Zudem sind von je her situative Bedingungen, zeitliche Dynamik sowie ein hohes Maß an Unsicherheit und Risiko besonders bedeutsam. Dieses essential beschreibt die Grundlagen des Streitkräftemanagement als Ressourcenmanagement in Militärorganisationen. Es bietet damit allen an der Militärökonomik Interessierten einen raschen Zugang zur Problematik und Lösung von Engpässen in Streitkräften. Der Inhalt Ausrichtung des Streitkräftemanagements am Konflikt Zielkonflikte und Ziele des Streitkräftemanagements Streitkräftemanagement aus system- und prozessorientierter Sicht Die Autoren PD Dr. Andreas H. Glas, Geschäftsführer der Forschungsgruppe Defence Acquisition & Supply Management, ehem. Offizier (Hauptmann) der Bundeswehr und Dozent u.a. für Grundlagen des Streitkräftemanagement an der Universität der Bundeswehr München. Hon.-Prof. Dr. Jürgen Schnell, GenLt. a.D., Offizier in der Bundeswehr von 1956 bis 1994, zuletzt Stellvertreter des Inspekteurs der Luftwaffe und Stellvertreter des Generalinspekteurs der Bundeswehr. Seit 1995 Honorarprofessor der Universität der Bundeswehr München mit Lehre der Fächer Grundlagen des Streitkräftemanagement sowie Wirtschaftlichkeit von Streitkräften.

Elektronische Marktplätze (e-MP) besitzen eine Reihe von Funktionalitäten, die zu mehr Transparenz, Wettbewerb und Wirtschaftlichkeit führen. Das öffentliche Beschaffungswesen in Deutschland hat die Implementierung und Nutzung öffentlicher elektronischer Marktplätze (Ö-e-MP) jedoch noch nicht berücksichtigt, obwohl der öffentliche Sektor grundsätzlich auf größtmöglichen Wettbewerb ausgerichtet ist. Basierend auf der Theorie des unvollkommenen Wettbewerbs erklärt diese Studie die Faktoren, die zu Ineffizienzen im Beschaffungswesen führen. Untersucht wird, inwieweit ein Ö-e-MP einen positiven Effekt auf die öffentliche Beschaffungspraxis in Deutschland haben könnte. Zu diesem Zweck wurde eine Umfrage bei öffentlichen Auftraggebern durchgeführt. Die Ergebnisse zeigen, dass die Nutzung eines Ö-e-MP die Transparenz, den Wettbewerb und die Marktvollständigkeit im öffentlichen Beschaffungswesen insgesamt deutlich verbessern könnte. Darüber hinaus zeigen sich auch weitere positive Auswirkungen auf die Effizienz der öffentlichen Beschaffung. Die Originalität dieser Untersuchung besteht in der Identifikation des digitalen Wettbewerbs als Motor für die Leistungsfähigkeit des öffentlichen Auftragswesens.

PurposePerformance-based contracting (PBC) links pricing with performance objectives in service business relationships. Although interest in PBC has surged recently, there is still great uncertainty about the risks, opportunities and challenges. This paper aims to provide a deeper understanding of the contextual factors of PBC and how providers assess them.Design/methodology/approachThis paper includes conducting a multiple-case study evaluation and analyzes data from 21 cases. Risks, opportunities and contextual factors are identified through interviews, and the case data are analyzed with several methods, including Borda count and cross-tabulation.FindingsThe results show that the most important factors of PBC are clear responsibilities, clear performance indicators, transparent measurement, cooperative culture and a precise utilization profile of core assets. Surprisingly, incentives are of minor perceived relevance. The analysis supports the differentiation of PBC into two subcategories: lean (low integrated) and customized (high integrated) PBC.Research limitations/implicationsWhile many studies stress the uniqueness of PBC in accordance with the "one-size-does-not-fit-all" mantra, this research differentiates the standardized PBC from a customized one. The findings face the limitations of case study research and qualitative data analysis in general.Practical implicationsPractitioners are provided with guidance to develop either a customized or a standardized PBC.Originality/valuePreviously, broader empirical insights have still been rare; thus, this paper contributes to the PBC literature, as it provides data from multiple cross-industry cases. The findings (e.g. the minor relevance of incentives) stand in contrast to parts of the academic literature and contribute also to the wider service management field.

Purpose
The purpose of this paper is to examine how communication with suppliers influences performance during production ramp-up. Often, time, cost or quality targets are missed in production ramp-ups while the number and frequency of ramp-ups is further increasing. The goal of this paper is thus to contribute a better understanding if and to which extend communication content or communication relationship is affecting ramp-up performance.


Design/methodology/approach
The research uses data from a dyadic survey (N = 160) in the German automotive industry. The data set comprises responses from buyers and suppliers. Constructs, namely, information and relationship quality, as well as communication satisfaction, are measured. The effect of communication is evaluated referring to cost, quality and time dimensions of performance. The analysis is applied with structural equation modeling methodology. This research is complemented by a multigroup analysis (MGA) especially comparing buyer and supplier respondent groups.


Findings
The results indicate that communication satisfaction positively influences ramp-up performance and that information quality is of higher relevance than relationship quality. Briefly, information exchange (what information to transfer) is more important than relationship management (how to transfer information). This finding contrasts previous literature focusing on relationship factors in communication settings. Furthermore, findings from MGA sustain the findings, because effects are also analyzed from a supplier's or buyer's viewpoint. Overall, the findings imply that supplier communication in production ramp-up must of course provide a high level of information quality. However, to optimize ramp-up performance also a high level of relationship quality is required.


Research limitations/implications
This study featured data from the German automotive industry from buyer's and supplier's perspective. This limits its generalizability, yet provides opportunities to test the findings through longitudinal studies, potentially gathering data from other sectors.


Practical implications
This research recommends managers deliver high information quality to improve communication satisfaction. Hence, this survey provides support for business communication o enhance ramp-up performance to achieve success in buyer–supplier relations.


Originality/value
Besides the original dyadic database, this research addresses production ramp-up as a very dynamic process. Plans and forecasts change often, thus supplier communication takes place in a stress situation. Then, communicators might overstate information quality and lose sight of relationship quality. The study contributes to this field of research and postulates that (automatic, autonomous) data exchange requires behavioral and relational support. The findings are useful for companies in stress situation (e.g. also a pandemic supply crisis) and will avoid that the optimization of information exchange disregards the relationship aspect.

Purpose
– Given the high importance of information systems for procurement, surprisingly there have been little efforts to analyze the process and the relevant reasons for the procurement decision of such systems from a stakeholder perspective. The purpose of this paper is to explore these aspects in the context of low-value (C-)parts.


Design/methodology/approach
– Research is based on a case study in a pre-fabricator company in Germany and analyzes the process to procure a system for sourcing low-value parts.


Findings
– As a finding, the procurement process and decision attributes have been integrated into a framework which supports corporate decision-making considering the procurement reasons of all involved stakeholders (internal departments, external customers and suppliers).


Research limitations/implications
– Research is based on case study analysis. Findings are specific to case companies and the environment in which they operate. The framework should be tested further in different contexts.


Practical implications
– The developed decision frame supports the evaluation of different sourcing information systems, including clearly measurable criteria but also qualitative or company-strategic decision attributes.


Originality/value
– The combination of financial and other perspectives (operations, information technology (IT)-administration, system users, etc.), is used to evolve a robust ex-ante instrument for supporting buying decisions for procurement information systems. The case description also illustrates the findings and develops new insights about stakeholders and buying groups decision-making for information systems.

Abstract
The media and the public often make claims regarding the excessive cost increases in the development and production of major weapon systems such as fighter planes, submarines or tanks. The purpose of this research is in assessing the cost increase of such weapon systems during their procurement periods with the help of the Paasche price index. In contrast to other approaches, which focus upon either the specific situations of single weapon systems or cost increases relative to planned budgets, we compare several projects of military services and their cost increases over time to reveal generalisable trends.
For this purpose, we used a framework model that allows for performance and cost comparisons. This paper primarily emphasises the cost perspective by calculating a Paasche index for each chosen project. As a background case for our analysis, we have used the acquisition projects for major weapon systems in Germany. However, the framework model that this study employs is universally applicable.
In contrast to the public perception of cost increases, we could not find any clear trend that would indicate that modern weapon systems have a significantly higher (or lower) cost increase than was the case for projects several decades before. To give brief insight into the empirical findings, the cost increase ratios of the Starfighter and Eurofighter jets have the same level, while cost increase ratios of other weapon systems (APC tanks, submarines) differ significantly (to the worse and to the better) over time. Our findings imply that there is no general trend that today the costs for weapon systems increase more/less than some decades ago. This paper calculates data only from the regarded seven cases therefore we could not question the causes for this observation on basis of our sample. However, it appears that, within a specific service or a specific vehicle type (tank, fighter jet, ship/boat), cost increases may be similar over time.

PurposePerformance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service performance with the aim of providing monetary incentives to safeguard possible outcomes as much as possible for the PBC customer. Performance measurement and its management are crucial for PBC success and, in particular, for the pay-for-performance link. However, the literature on PBC performance management is rather sparse, and there has been no systematic review on the topic. Thus, the purpose of this paper is to fill that gap and to present a comprehensive and systematic review of performance measurement and management in the PBC context.Design/methodology/approachThe paper builds on a literature review based on a sample of 102 subject-relevant articles from academic journals. The content analysis follows a two-step procedure. First, the articles are coded following a process-based research framework. Second, the content of each process step is assessed in a qualitative text analysis.FindingsThe results show a surprising scarcity of papers that explicitly address performance management topics in the context of PBC. Only the topics of performance specification and performance indicators are broadly addressed, whereas in all of the other areas, e.g., strategic alignment, data capture and reporting, only limited specific findings could be found.Research limitations/implicationsThe paper concludes that future research on performance management in PBC should expand its theoretical framework and empirical efforts in four specific proposed directions.Originality/valueThe paper provides an up-to-date review that is focused on performance management and measurement in the emerging context of PBC.

PurposeThe purpose of this research is to analyse military logistics providing a decision support instrument for contracting in defence supply chains.Design/methodology/approachThis instrument – the Performance‐Based Logistics (PBL) portfolio – is developed following the contingency approach. Qualitative interviews and illustrative examples from Germany, Austria and Switzerland are used to validate the portfolio.FindingsThe proposed portfolio examines a military demand in respect of its required effectiveness (robustness and resilience), and the suppliers' ability to influence efficiency (forecast and supply risk). In combination, the contingencies are used to recommend three alternative types of PBL contracting.Research limitations/implicationsThis paper is based on conceptual work with illustrative case examples. Therefore, although the authors believe that the PBL portfolio provides useful guidance for further research, the empirical applicability of this instrument must be proven.Originality/valueThe research on PBL is gaining importance, but still there remains a deficiency of theoretical grounding and management instruments. This study is a first approach to use the contingency framework for developing such an instrument. The value of the PBL portfolio lies in supporting normative decision making for contracting military supply.