Outsourcing of equipment repair and restoration is commonly practiced by firms across many industries. The operational performance of the equipment is determined by joint decisions of both the firm and the service provider. Although some decisions are verifiable (and thus directly contractible),...

Traditional sourcing arrangements for after-sales product support have centered around physical assets. Typically, a customer would pay the supplier of maintenance services in proportion to the resources used, such as spare parts, that are needed to maintain the product. In recent years, we have...

Using a proprietary dataset provided by a major manufacturer of aircraft engines, we empirically investigate how product reliability is impacted by use of two different types of after-sales maintenance support contracts: time and material contracts (T&MC) and performance-based contracts (PBC)....