Performance-Oriented Contracting—A Review

Abstract

This paper provides a systematic review of multiple writings addressing quality performance-oriented contracting and individual driven performance. The study systematically reviewed 155 refereed papers across various fields published between from 2000 to 2018. A categorization framework of performance-oriented contracting is proposed addressing key dimensions of its plan and management. The relative analysis of fundamental articles advancing interdisciplinary perspective encourages learning, supports strategic decision making, and provides knowledge about quality management in firms especially at individual and organizational stages. The paper reviews performance contracting articles in public and private organizations, which are a milestone toward quality performance. These outcomes demonstrate that performance contracting is useful in performance improvement if job design and knowledge sharing exist across the organization. The results indicate that much of the contemporary wide-ranging performance contracting study do not have robust theoretical grounds. The review submits managerial implications which potentially assist practitioners, consultants, and academicians understand the concept of performance contracting, quality design, and management. This paper proposes a categorization structure of performance contracting study and proposes directions for future study on performance contracting, which should explicitly connect to contemporary study themes. This paper informs further systematic endeavours to conduct more beneficial literature reviews about performance contracting in diverse organizational setups.