Exploring outsourcing service productivity from the buyer and supplier perspective: A case analysis in the fleet maintenance industry

Service productivity is measured as the relationship between outputs and inputs. In the outsourcing service industry, these outputs are different for buyers and suppliers, generating potential conflicts in the service process. Also, buyers' choices impact their inputs and, consequently, productivity. This study explores these relationships and their impact on service productivity. First, we assess the service productivity using outputs important for the buyer and outputs important for the supplier. Second, we assess which service characteristics (inputs) of each B2B affect productivity. We employed a data envelopment analysis to obtain efficiency scores for buyers' and suppliers' outputs. Then, we used these scores in a Tobit regression model to determine which inputs affect productivity. Findings show that the maximization of some buyers' inputs and outputs is not optimal for the supplier. Managers can use buyers and transaction data to identify the contribution of each B2B buyer to productivity and design better service contracts.