Creative Commons

This dissertation was written as part of the MSc in Strategic Product Design at the International Hellenic University. The study investigates performance-based contracting in retail sector. Evidence in the context of supply in highly competitive market such as FMCG involving manufacturers and retailers indicates that the performance that companies buy and sell can be analyzed as specific combinations of effectiveness, efficiency and risk. Firms engage in a complex and time-consuming process to design and agree upon performance targets, payment mechanisms of buying and selling future performance. The conventional procedure of buying and selling products or services change to an environment of buying and sell performances that are necessary to gain competitive advantage. The research focuses on retail sector and the relationship between purchasing managers and suppliers. The research is not focused on the sub-contractors’ companies e.g. transport companies, logistics centres etc.) between supplier and the retail company. The study investigates performance-based contracting in long termsupply relationships. Evidence in the context of supply relationships involving suppliers of consumer B2B companies. This study aims to provide a review and synthesis of the performance-based contracting (PBC) literature across academic disciplines. The theoretical framework used to provide a theoretical assumption for the analysis of empirical evidence.