Inter-organizational cost management: effects of antecedents and methods in a hybrid relational context
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 14 February 2020
Issue publication date: 23 April 2020
Abstract
Purpose
The antecedents and cost management methods and their effects on the value creation of inter-organization are essential topics of inter-organizational cost management (IOCM) in a hybrid relational perspective. This study aims to develop a synthesis coordinating mechanism theory which combines supply network theory and transaction cost economics. Using this modified theory, a structural model of IOCM and its hypotheses are developed by considering the organic connection among hybrid relational context, capabilities, methods and the effects of IOCM.
Design/methodology/approach
The data were collected under convenient sampling using the questionnaire survey method and analyzed using principal component analysis and structural equation modeling.
Findings
The results (significant at p < 0.01 and p < 0.05 level) show that there is a positive correlation among the hybrid relational context, capabilities (antecedents), methods and the effects of IOCM. Capabilities (antecedents) and cost management methods are also found to have a positive impact on synergic effect value and on improving collaborative efficiency in IOCM.
Practical implications
The managers of inter-firm networks may use the results of this study to ensure competitive advantages through collaboration with each other and building and retaining a long-term relationship.
Originality/value
This study demonstrates that the coordinating mechanism of IOCM can create the synergic effect value and improve the collaborative efficiency of the inter-organization relationship.
Keywords
Acknowledgements
The authors are grateful that this paper is supported by the MOE Project of Key Research Institute of Humanities and Social Sciences in Universities of China (Grant No. 16JJD790033). Moreover, the authors gratefully acknowledge the constructive and helpful comments of editors and anonymous reviewers.
Citation
Uddin, M.B., Fu, Y. and Akhter, B. (2020), "Inter-organizational cost management: effects of antecedents and methods in a hybrid relational context", Journal of Business & Industrial Marketing, Vol. 35 No. 5, pp. 909-923. https://doi.org/10.1108/JBIM-07-2019-0348
Publisher
:Emerald Publishing Limited
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