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A longitudinal case study of target cost management implementation at a shipbuilding company

Kenji Yasukata (Faculty of Business Administration, Kinki University, Osaka, Japan)
Eisuke Yoshida (Faculty of Business and Commerce, Keio University, Tokyo, Japan)
Ichiro Yamada (Graduate School of MA, Kagawa University, Kagawa, Japan)
Keisuke Oura (Department of Economics, Shiga University, Shiga, Japan)

Journal of Accounting & Organizational Change

ISSN: 1832-5912

Article publication date: 28 October 2013

Abstract

Purpose

This paper aims to examine the implementation of target cost management (TCM) at a Japanese shipbuilding company.

Design/methodology/approach

Using Rogers' Diffusion of Innovation as a framework, the paper presents a longitudinal in-depth case study of TCM implementation project to show the issues involved in implementing TCM.

Findings

The paper finds that the diffusion of TCM is a consequence of a deliberate managerial activity – which in this case is the control over the TCM implementation. The TCM implementation project in our case ended in failure. The paper shows that the lack of appropriate controls over the TCM implementation project was the main reason for its failure.

Originality/value

The paper shows how TCM implementation is a part of the process of TCM diffusion within an organisation. In the previous studies of TCM, researchers have noted how well-managed TCM implementation projects were; thus, suggesting how TCM implementation should take place. The paper focuses on the control over the TCM implementation, simply because TCM does not naturally diffuse throughout an organisation.

Keywords

Acknowledgements

The authors gratefully acknowledge the helpful comments from Chris Akroyd (Guest Editor) and two anonymous reviewers. The authors also thank the staff at the case site. The authors greatly appreciate funding from Grant-in-Aid for Scientific Research (B) 23330150, Japan Society for the Promotion of Science (JSPS).

Citation

Yasukata, K., Yoshida, E., Yamada, I. and Oura, K. (2013), "A longitudinal case study of target cost management implementation at a shipbuilding company", Journal of Accounting & Organizational Change, Vol. 9 No. 4, pp. 448-470. https://doi.org/10.1108/JAOC-09-2010-0044

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited