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This book examines the management of Procuring Complex Performance (PCP) in large-scale programmes that includes the downstream support phase in sectors such as construction, healthcare, transport, aerospace, marine and defence. It brings together a series of edited chapters to explain why the traditional combination of linear project management and highly detailed contracts are now unsuited to the dynamics of emerging customer requirements based on performance and outcome. Working with leading business professors across the UK and Europe, Caldwell and Howard present the case for why large-

PurposeThis paper aims to examine the role of product architecture in supply chain design. Specifically, it seeks to resolve confusion over the impact of modularisation on supplier relationship management. On the one hand, the introduction of modularisation suggests that buyer and supplier firms should move towards greater collaboration in order to co‐develop products and reduce interface constraints. On the other hand, the standardisation of interfaces suggests that buyer firms could introduce a "black box" approach to component design, holding suppliers at arm's‐length and reducing dependence. These conflicting views form the focus of the research: under what conditions does modularity lead to increasing collaboration?Design/methodology/approachThe data are drawn from UK manufacturing firms across eight industry sectors using a sample from the Conquest Business Media database. Three hypotheses are tested through a three‐step hierarchical regression analysis.FindingsThe findings provide support for the notion that product modularization will lead to greater levels of buyer‐supplier collaboration, but that this relationship is mediated by relationship‐specific assets and information sharing.Originality/valueThe paper supports the argument that modularised components require collaborative sourcing practices in order to co‐develop products and reduce interface constraints. This suggests that outsourcing requires a high level of integration, creating dependencies between firms representing considerable investment in equipment and sharing through proprietary information systems. As interest in build‐to‐order supply chains and flexible product architecture grows; this emphasizes the importance of specifying the exact nature of relationship processes without stifling product innovation.

This paper explores governance mechanisms and the dynamic interplay of functional and dysfunctional behaviour, what we term '(dys)function', in long-term inter-organizational relationships. Using two longitudinal cases of warship commissioning we argue although varying degrees of formalization is important when managing long-term relationships, organizations should learn not only to contract or build up trusting relations but consider both together as semi-coupled in terms of the impact such interplay has on performance. We discuss governance mechanisms as moving beyond notions of complementarity and substitution towards a more nuanced view where governance of inter-organizational relationships can be convergent or divergent. Our findings show that what is functional behaviour for one side of the dyad can be dysfunctional for the other party, also that relationships can exhibit functions and dysfunctions across forms of governance simultaneously. Our conclusions suggest that mismatches in governance mechanisms can be positive as well as negative, and it is the overall relationship atmosphere that determines the direction of the (dys)function. In building a context dependent understanding of governance we both summarise the (dys)functions associated with formal and informal governance mechanisms, and explore their impact on relationship exchange performance over time.

PurposeThis paper seeks to present a teaching tool (the Innovation Game) which aims to demonstrate the challenges of developing an effective innovation strategy in the context of new product development. The goal of the game is to enable participants to experience how strategic and operational choices made in relation to innovation strategy are interrelated and how these choices can impact on new product development success. Specifically the paper aims to explore the impact of choices made in relation to capability accumulation, capacity management and product‐portfolio management.Design/methodology/approachAfter presenting the learning objectives for the game with the support of relevant literature, the paper describes the design of the game and the context in which it was played. The paper reviews feedback (learning outcomes) from formal reflective post‐game sessions with participants. This feedback indicates that the learning objectives have been satisfied.FindingsThrough experiential learning and reflective practice participants learn, for example, that: capabilities need to match the intended strategy; investing in production capacity can be leveraged to aid negotiations with competitors, or it can be used as a bully tactic; and, it sometimes is better to be an R&D "follower" rather than a "leader". The participants also learn that the alignment of operational and strategic choices is necessary in order to leverage success in developing new products but that the actions and strategies of competitors have a direct impact also and need to be considered carefully.Research limitations/implicationsThe teaching tool adopts a participative game playing and reflective learning approach to introduce into class some of the real‐life competitive dynamics of managing new product development and decision making normally confined to the boardroom. While it is argued that the game demonstrates the challenges of developing successful strategy, the game is set in a static context in which certain external contingencies are not accounted for.Originality/valueDemonstration of the importance of strategy to new product development is particularly difficult because of the longitudinal nature of product development and the tacit nature of the decision making process which often transpires long after projects are completed. The paper posits that the value of the Innovation Game is in reflecting on it as a practical, interactive tool that helps participants appreciate the challenges inherent in strategic and operational decision making related to innovation strategy and new product development success.

PurposeThe paper seeks to analyze the evolution of competitive advantage using both "classic" and "extended" resource‐based theory (RBT). The aim is to examine the different ways in which "classic" and "extended" resource‐based advantage develops and how they might combine to create long‐term advantage.Design/methodology/approachA single case study method is used to examine the process by which competitive advantage has accumulated over a 50‐year period at Food Services Group Inc., a highly successful food service company based on the West Coast of the USA with an annual growth rate currently running at 10 percent.FindingsPreliminary conclusions suggest support for the sequential, iterative, and slow‐cycle development model associated with proprietary bounded resources and, the strategic resource‐rigidity paradox. The work also highlights preliminary evidence for a faster cycle development process possible with inter‐firm resources associated with extended resource‐based theory (ERBT) and, long‐run sustainable advantage requiring synchronization and integration of both bounded and relational resources.Originality/valueThis is the first rich empirical study of the way competitive advantage evolves using both RBT and ERBT. The research provides insights into how organizations can combine both classic and extended resources in seeking to establish competitive advantage. It illustrates how unbounded external resources, such as the role of suppliers engaged in new product development, can create an initial advantage for firms who then build on this by investing in bounded resources such as specific skills within their organization.

PurposeThis paper investigates the stalled adoption of a supplier park at Bridgend Engine Plant in the UK. It starts from the position that not all firms can or should implement the same set of practices.Design/methodology/approachCritical incident technique and semi‐structured interviews over five years were used to understand the influence of institutional and strategic choices during the implementation of a supplier park. A conceptual framework was developed to incorporate practices broadly associated with parks, i.e. improving supply stability, supply coordination, redefining the OEM/supplier boundary and enhancing interaction between co‐located firms.FindingsThe findings demonstrate a limited implementation of supply practices at Bridgend with only one component supplier brought onto the site. The original plan was to create a supplier park that would "grow" to an industrial park, creating an automotive sector in the area. However, a combination of operational, processual, and contextual factors have conspired against the plan.Research limitations/implicationsThe combination of a broad range of theoretical and practical elements means there are associated discussions that could be more fully explored. Condensing the interview notes has resulted in the researchers' own interpretation of events becoming a significant reality filter. Whilst single case studies raise inevitable concerns over comparability, our focus is on theoretical generalizability through richness of empirical data.Originality/valueAs firms continue to use best practice as a core ingredient of strategy, researchers must respond with robust theoretical concepts explaining adoption and implementation. This paper integrates disparate perspectives across multiple levels in order to build a richer and more believable picture of a stalled initiative. Three key conclusions can be drawn: the contingent nature of "bundles of practice" implications of political ambiguity over the efficiency argument and the effect of isomorphic or bandwagon responses by firms.

Purpose: This paper investigates the stalled adoption of a supplier park at Bridgend Engine Plant in the UK. It starts from the position that not all firms can or should implement the same set of practices. Design/methodology/approach: Critical incident technique and semi-structured interviews over five years were used to understand the influence of institutional and strategic choices during the implementation of a supplier park. A conceptual framework was developed to incorporate practices broadly associated with parks, i.e. improving supply stability, supply coordination, redefining the OEM/supplier boundary and enhancing interaction between co-located firms. Findings: The findings demonstrate a limited implementation of supply practices at Bridgend with only one component supplier brought onto the site. The original plan was to create a supplier park that would "grow" to an industrial park, creating an automotive sector in the area. However, a combination of operational, processual, and contextual factors have conspired against the plan. Research limitations/implications: The combination of a broad range of theoretical and practical elements means there are associated discussions that could be more fully explored. Condensing the interview notes has resulted in the researchers' own interpretation of events becoming a significant reality filter. Whilst single case studies raise inevitable concerns over comparability, our focus is on theoretical generalizability through richness of empirical data. Originality/value: As firms continue to use best practice as a core ingredient of strategy, researchers must respond with robust theoretical concepts explaining adoption and implementation. This paper integrates disparate perspectives across multiple levels in order to build a richer and more believable picture of a stalled initiative. Three key conclusions can be drawn: the contingent nature of "bundles of practice" implications of political ambiguity over the efficiency argument and the effect of isomorphic or bandwagon responses by firms. © Emerald Group Publishing Limited.

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.