Abstract
Practitioners are using performance‐based logistics (PBL) strategies to reduce cost and improve value in industries such as defense, transportation, manufacturing, and healthcare. PBL is part of a group of increasingly popular buyer–supplier strategies that focuses on outcomes as oppose to the delivery of products or services. A key tenet of PBL is the use of innovation to create cost avoidance that benefits buyers and suppliers. In this research, we explore the interfirm team‐level factors associated with innovation in successful PBL strategies. This research brings together business, organizational behavior, and engineering literature to study PBL team success. The study entailed interviews with 17 managers involved in large scale PBL projects. The interviews and follow‐on member checking sessions resulted in a model composed of eight emergent categories and associated propositions. Both practical and theoretical implications are provided.
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