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Adaptation of Risk Sharing Partnerships (RSP) to New Industries

  • Theodor Kvæven Halvorsen
  • Gøril Hannås
  • Magnus Mikael HellströmEmail author
Conference paper
  • 73 Downloads
Part of the Lecture Notes in Mechanical Engineering book series (LNME)

Abstract

The aerospace industry has since the 1990s used a partnership model called Risk Sharing Partnerships (RSP) to handle certain challenges faced in the development of new aircrafts. The RSP model allows the client to include key suppliers in the development of a new product, and hence sharing the burden of investment, risk mitigation, as well as the future sales income. This makes it easier to acquire funding for the development of new products and technologies, in addition to accelerating the development process by including key competencies earlier (Buzacott and Peng in Eur J Oper Res 218:656–666, 2012). RSP have raised interest in other industries, which calls for increased knowledge of contingency factors of the RSP, as well as suppliers’ perspective on RSP as a partnership model. Both are regarded important if cross-industry learning is to be promoted. By using a literature review of existing studies on RSP, combined with a case study of two aerospace suppliers, this study investigates the contingency factors of the RSP as a foundation for cross-industry transfer of knowledge, and proposes a model to assist cross-industry adaptation in project-based industries. We propose that there are three critical contingency dimensions for RSP-implementation, based on both financial and relational factors.

Keywords

Aerospace industry Partnerships Reward sharing Risk sharing Risk sharing partnerships 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Theodor Kvæven Halvorsen
    • 1
  • Gøril Hannås
    • 2
  • Magnus Mikael Hellström
    • 1
    • 3
    Email author
  1. 1.Industrial Economics and Technology ManagementUniversity of AgderGrimstadNorway
  2. 2.Department of Working Life and InnovationSchool of Business and Law, University of AgderGrimstadNorway
  3. 3.Faculty of Science and EngineeringÅbo Akademi UniversityÅboFinland

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