Morphological analysis for designing and configuring outcome-based contracts for non-moving industrial machinery – an empirically grounded conceptualization

Purpose The study aims to identify the critical decision criteria (DCs) and associated configuration for non-moving (primarily installed) machine manufacturers (MMs). Design/methodology/approach An exploratory multiple case study was conducted, involving six MMs. The study combines insights from systematic literature reviews, expert team discussions and empirical interviews. Morphological analysis was employed as a problem-structuring tool to capture and categorize the DCs and their options. Findings The research identifies 29 DCs, organized into 3 themes: ownership, responsibility and payment models. Several novel DCs and options are proposed, including software and data ownership, responsibilities for installation, modernization, recycling, scrapping and reselling. These extend existing literature and reflect the influence of Industry 4.0 and digital servitization on OBC design. Research limitations/implications The findings are based on, in addition to a literature review, six carefully selected different types of MM case companies offering primarily non-moving installed machines. The empirical validation is based on MMs offering non-moving, primarily installed industrial equipment, and the proposed morphological analysis is therefore most directly applicable to such contexts, while applications to moving or autonomously moving equipment require additional considerations related to asset mobility, utilization and lifecycle coordination. Practical implications The morphological analysis offers MMs a structured tool to design and configure OBCs systematically. It enables companies to optimize lifecycle profits, mitigate risks and further incorporate sustainability into OBC offerings. Originality/value This study extends previous research on morphological analysis of advanced business models, such as OBCs and performance-based contracts, by empirically confirming and expanding the set of DCs and DC-related configuration options for OBCs, offering a novel and comprehensive conceptualization tailored to MMs of non-moving and primarily installed machines, which are used as part of industrial business-to-business manufacturing processes.