Contract dimensions, service complexity and perceived supplier performance in purchasing business services

This study analyzes the influences of contract design on the buyer-perceived supplier performance in global services. A research model is proposed and tested using survey data consisting of 144 purchasing professionals from 23 countries. The results indicate that three major contract dimensions and follow-up management of contract positively influence perceived supplier performance. Furthermore, service complexity amplifies the importance of incentives designed in the contract and buyer’s follow-up contract management in perceived supplier performance. This paper contributes to the understanding of performance enhancing aspects of designing and monitoring service contracts in B2B contexts.