Determinants of the Implementation and Long-Term Use of Interorganizational Cost Management Tools – An Experimental Investigation

Abstract

Purpose – Interorganizational cost management among companies can lead to significant cost reductions. However, the determinants of the implementation and long-term use of open book accounting as a tool in interorganizational cost management still remain unclear. We contribute to the academic literature by examining the influence of different determinants on the propensity to use open book accounting.

Design/methodology/approach – We conduct an experiment and use a covariance-based structural equation model to analyze the influence of the amount of the initially offered cost information, the offer of a relation-specific asset, and the relative power structure. The model introduced in this paper also integrates aspects of user acceptance that are derived from the Technology Acceptance Model.

Findings – The results demonstrate that both groups of variables have a significant effect on the willingness to use open book accounting. We also show that users of a management device are influenced in their choice by the perceived ease of use of the instrument; yet the extent to which open book accounting can help them achieve their goals (perceived usefulness) has an even stronger influence.

Research limitations/implications – Our findings contribute to a better understanding of the determinants that lead to the successful implementation of open book accounting as an interorganizational cost management tool, and help companies to avoid pitfalls during the implementation process.

Originality/value – This is the first study to analyze the simultaneous influence of different situational and attitudinal determinants on the propensity to engage in interorganizational cost information exchange.

Citation

Piontkowski, J.O., Hoffjan, A., Lachmann, M. and Schuchardt, L.D. (2012), "Determinants of the Implementation and Long-Term Use of Interorganizational Cost Management Tools – An Experimental Investigation", Davila, A., Epstein, M.J. and Manzoni, J.-F. (Ed.) Performance Measurement and Management Control: Global Issues (Studies in Managerial and Financial Accounting, Vol. 25), Emerald Group Publishing Limited, Leeds, pp. 223-246. https://doi.org/10.1108/S1479-3512(2012)0000025012