Logo: to the web site of the Swedish Defence University

Purpose

PBL is thought of as a novel way of designing defence supply chains, advocating long-term relations in which a 1st tier supplier assumes responsibility for the upstream supply chain, and is awarded or punished based on pre-set performance standards. Activities and resources could be lifted out of the defence hierarchy. PBL should lead to adjusted inter-organisational relations and intra-organisational activity structures. The purpose of this research is to explore a) what barriers and enablers to PBL are perceived as the most important in a Nordic perspective, b) how relations between the Defence and PBL suppliers are handled, and c) whether PBL leads to organisational change within the defence.

Design/methodology/approach

Because few PBL contracts exist within the Nordic countries a qualitative approach was chosen, based on document studies and semi-structured interviews. Primary data were collected from four units of analysis, each chosen to shed light to all one or more of the research questions.

Findings

Our study supports some of, but not all barriers and enablers found in previous research. Lack of supply chain orientation is the main barrier. Relationships seem to depend on trust developed over time, also prior to the PBL contract. Although PBL alters interorganisational activity structures, this only to a minor degree results in organisational change.

Research limitations/implications

Qualitative study of a few Nordic PBL contracts. Findings validated in a Nordic context, not necessarily for other small nations.

Practical implications

Our findings have implications when planning and implementing PBL contracts.

Original/value

This is the first reported study of PBL contracts in the Nordic countries.