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1 – 10 of over 170000Marta Tkaczyk, Anna Salina, Jouni Lyly-Yrjänäinen and Teemu Laine
New service businesses carry opportunities for industrial companies. The different cost management and management control implications of those service businesses deserve…
Abstract
Purpose
New service businesses carry opportunities for industrial companies. The different cost management and management control implications of those service businesses deserve attention, which is a widely under-researched area in management accounting and control literature. Digital twins could hold potential in unveiling and supporting those new service business opportunities, as a unique approach of this paper. Thus, the purpose of this paper is to examine the possibility and potential for creating a digital twin of a service, especially to unveil the management accounting and control implications of the digital twin in developing new service businesses.
Design/methodology/approach
This paper investigates the potential of a digital twin in unveiling cost and control implications of new service businesses by examining the characteristics of a digital twin in the service business development context. The paper use an in-depth interventionist case study, where the designed animations illustrate the possibilities of a digital twin of a service. The animations showing the service process characteristics were first used as a communication tool and eventually those animations were actively used in customer cases for different purposes. This motivated the idea for examining the implications of such animations representing a digital twin of a service.
Findings
The paper provides empirical insights regarding the potential for developing and using a digital twin of a service for different cost management and management control purposes. The digital twin of a service may include all main details of a new service offering, simulating the functionality of a service, hence making the performance and the implications of the new service concept clear for all the stakeholders. The digital twin of the service enables defining the processes, setting targets and helps communication about the value generation. Thus, they represent a significant toolkit for the management accounting and control function of the manufacturers.
Originality/value
This paper is among the first attempts to understand the digital twin of the service. The paper is unique in providing financial and control implications of digital twins also in the context of service business development. The in-depth interventionist approach enabled an exceptional exploration process on the subject. The article paves the way toward further research on managing the digital twins of services in the future.
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Fredrik Tiedemann, Joakim Wikner and Eva Johansson
The purpose of the study is to describe the implications of strategic lead times (SLTs) for return on investment (ROI).
Abstract
Purpose
The purpose of the study is to describe the implications of strategic lead times (SLTs) for return on investment (ROI).
Design/methodology/approach
This study was part of an interactive research project and is based on the logic of theory application leading to theory building. It uses a multiple case study with five holistic single cases. Empirical data (ED) have mainly been collected from interviews and focus groups.
Findings
The length of and uncertainty in SLTs have implications for companies' financial performance. These implications vary in strength and can be either direct or indirect. These findings are incorporated into a framework on SLTs' implications for ROI.
Research limitations/implications
The presented array of SLTs' implications for ROI could be further investigated, focussing on their strength. Additionally, it would be interesting to substantiate the findings in the context of environmental and social sustainability (i.e. the triple bottom line).
Practical implications
The findings offer practitioners a rich description and understanding of SLTs' actual implications for financial performance in terms of ROI. This knowledge can support practitioners in analysing supply chain designs based on financial performance.
Originality/value
Using a combination of a relative financial performance measure (ROI) and a set of SLTs (systems perspective), this study focuses on SLTs' actual implications for ROI. The findings provide evidence that different sections of a supply chain can have different implications for revenue, cost and investment (i.e. the three absolute measures related to ROI).
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Hamlet David Reynoso Vanderhorst, David Heesom, Subashini Suresh, Suresh Renukappa and Keith Burnham
The aim of this paper is to identify the business barriers that influence cost of implementing unmanned aerial system (UAS) and its suitability for a decentralised system. UAS, or…
Abstract
Purpose
The aim of this paper is to identify the business barriers that influence cost of implementing unmanned aerial system (UAS) and its suitability for a decentralised system. UAS, or drone, plays a role of data provider to architectural, engineering and construction professionals within a decentralised system. However, the expectations in the execution and test of the effectiveness of the UAS is often not met. The reasons for these fails are not well elaborated in the literature. Hence, the study investigates the barriers and cost analysis of UAS that can be used for a decentralised case, in which the UAS data are useful for multiple stakeholders, and provide illustration of the interactions within this approach.
Design/methodology/approach
This paper is part of a longitudinal project by using a qualitative method of interviewing 24 participants involved in the process of application of drones in the country of the Dominican Republic. The open-ended semi-structured interviews were composed for questions regarding the application of UAS, barriers and business implications. The data gathered were transcribed and used thematic analysis for its interpretation. Later, conclusions of the barriers of UAS implementation in the organisation were analysed and a cost model was developed to identify a viable scenario.
Findings
The paper provides empirical insights about the barriers and economic considerations faced in the implementation process of UAS. In this research, 16 barriers in the implementation process at the management level, 8 types of cases of business relationships and 13 business models were identified. Furthermore, recommendations were made about being the accountability of the dimensions and recurrent visits to the projects handled by the portfolio of the organisations.
Research limitations/implications
Blockchain system is supported by UAS data and its tests require skills and resources that were outside of the scope of the main research intend regarding UAS implementation in construction. Furthermore, as these technologies are still under development, the assessment of the decentralised system, smart contract and swarm technology was addressed conceptually and further research are encouraged in this field.
Practical implications
The paper includes barriers to consider before implementation, business implications, project examples and cost structure developed. Furthermore, the findings are fit theoretically into the context of a decentralised system. It was understood and contemplated that monitoring in open and outdoor spaces is the suitable approach for UAS implementations for decentralised system. The trend of decentralised autonomous organisations for transparency and efficiency of human tasks provides the foundations of human–robot interactions as well as the role of tokenisation of assets into the cyberspace. Therefore, the paper brings managers and technicians the implications for the future-proofing the implementation of UAS.
Originality/value
This paper provides an overview of the implications of cost and the suitable scenarios for return of investment in the UAS implementation in the current stage of the technology development. In addition, the paper makes reference to decentralised systems, smart contracts and swarm technology as options in which reality capture technologies are essential for construction projects.
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Javed Hussain, Amin Karimu, Samuel Salia and Robyn Owen
Energy and environment has gained traction within the field of entrepreneurship literature, but a comprehensive empirical study that examines the relationship between the cost of…
Abstract
Purpose
Energy and environment has gained traction within the field of entrepreneurship literature, but a comprehensive empirical study that examines the relationship between the cost of energy and small- and medium-sized enterprise (SME) innovation is an omission. Therefore, this novel study aims to examine the relationship between the cost of energy and SMEs innovation in Sub-Saharan Africa (SSA) by first examining the differential impact of the various generation sources on the price of electric energy. This research has enabled us to investigate and understand the transmission mechanism of increasing/decreasing electricity price on innovation decisions and activities of SMEs in SSA.
Design/methodology/approach
Using quantitative approach, with the data from the World Bank Enterprise and Innovation Follow-up Surveys, the study utilises a Tobit model to test whether the generation mix (renewable and non-renewable generation sources) increases or decreases electricity prices and examine the impact of the cost of electric energy on SMEs innovation in SSA.
Findings
The findings of this study shows that the cost of electricity affects negatively on SMEs innovation decision and activities of SMEs in SSA. The impact of renewables on the price of electricity has a larger magnitude relative to that of non-renewables. This finding has implications for policy makers promoting renewable energy without a policy design to tackle the unintended price effect of promoting renewable energy.
Originality/value
This is the first study to introduce cost of energy into an innovation model and to empirically examine the role of cost of energy for innovation activities of SMEs in SSA. Further, it examines the sources of generation on electricity price in SSA. The study contributes towards the empirical literature, and the findings also have implication for policy makers regarding the unintended consequences of promoting the transition to low-carbon electricity generation sources on SMEs via the cost of doing business implication.
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Samuel Ekung, Isaac Odesola and Michael Oladokun
Across the globe, the dearth of certainty about the cost of sustainable buildings (SBs) remains a critical disincentive to their adoption. This study explored the factually…
Abstract
Purpose
Across the globe, the dearth of certainty about the cost of sustainable buildings (SBs) remains a critical disincentive to their adoption. This study explored the factually incorrect knowledge about the cost of SBs and their implications on adoption.
Design/methodology/approach
The study adopted sequenced mixed qualitative and quantitative approaches involving a literature review, Delphi study and survey. Semi-structured and structured self-study questionnaires were administered to a random sample of green building experts, researchers and registered construction professionals with deep knowledge of SB. The dataset from 254 stakeholders was analysed for commonality, principal components and critical misperceptions using multivariate approaches.
Findings
The predominant misperceptions in the study linked low adoption of SB to cost premium, portray cost premium as a property of luxury sustainable features and suggest related practices are suitable for exemplary projects only. The critical misperceptions produced various misinterpretations that inhibit the adoption of SB through the dearth of policies, increased complexities and inflation of budget to curb perceived risks.
Practical implications
The study buttressed the imperative to improve cost information, knowledge, skills and stakeholders' risk perceptions to increase SB adoption. The results provide insight into the regional misperceptions and knowledge gaps that could explain the low adoption of SB in a typical emerging green market.
Originality/value
The study showed that the prevalent knowledge about the cost of SB among construction stakeholders are unsupported beliefs and directs attention to emerging issues critical to SBs' adoption in emerging markets.
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David M. Herold, Sara Saberi, Mahtab Kouhizadeh and Simon Wilde
In response, the purpose of this paper is to provide theoretical frameworks about the organizational uncertainty behind what and when to adopt blockchain technology and their…
Abstract
Purpose
In response, the purpose of this paper is to provide theoretical frameworks about the organizational uncertainty behind what and when to adopt blockchain technology and their implications on transaction costs. The immature nature and the absence of standards in blockchain technology lead to uncertainty in government organizations concerning the adoption (“what to adopt”) and the identification of the right time (“when to start”).
Design/methodology/approach
Using transaction cost theory and path dependency theory, this paper proposes two frameworks: to assess transaction cost risks and opportunities costs; and to depict four different types of transaction costs outcomes regarding blockchain adoption.
Findings
This paper identifies various theoretical concepts that influence blockchain adoption and combine the two critical constructs of “bounded rationality” and the “lock-in effect” to categorize the multiple transaction costs outcomes for blockchain adoption.
Research limitations/implications
Although existing research in blockchain highlights mainly the potential benefits of blockchain applications, only a little attention has been given to frameworks that categorize potential transaction costs outcomes under uncertainty, in particular from organizational theorists.
Originality/value
Both frameworks advance the understanding of the decision-making behind blockchain adoption and synthesize the current literature to offer conceptual clarity regarding the varied implications and outcomes linked to the uncertainty regarding transactions costs stemming from blockchain technology.
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Juan Rendon Schneir, Konstantinos Konstantinou, Julie Bradford, Gerd Zimmermann, Heinz Droste, Rafael Canto Palancar and Ade Ajibulu
5G systems will enable an improved transmission performance and the delivery of advanced communication services. To meet the expected requirements, operators will need to invest…
Abstract
Purpose
5G systems will enable an improved transmission performance and the delivery of advanced communication services. To meet the expected requirements, operators will need to invest in network modernisation, with the radio access network being the most expensive network component. One possible way for operators to reduce this investment would be via sharing of resources by means of a multi-tenancy concept. This implies that a mobile service provider may use the common infrastructure of one or various infrastructure providers, whereby it provides services to multiple tenants. This paper aims to study the expected cost savings in terms of capital expenditures (CAPEX) and operational expenditures (OPEX) that can be achieved when using a cloudified 5G multi-tenant network.
Design/methodology/approach
A cost model was used. The study period is 2020-2030 and the study area consists of three local districts in central London, UK.
Findings
This paper describes that the total cost reduction achieved when using multi-tenancy for a 5G broadband network in comparison with the case where operators make the investment independently ranges from 5.2% to 15.5%.
Research limitations/implications
Further research is needed to assess the cost implications of network sharing for 5G on a regional or nationwide basis.
Originality/value
Very little quantitative research about the cost implications of network sharing under 5G networks has been published so far. This paper sheds light on the economic benefits of multi-tenancy in a 5G broadband network.
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Luqman Oyekunle Oyewobi, Richard Jimoh, Bashir Olanrewaju Ganiyu and Abdullateef Adewale Shittu
Construction process is complex and traditionally fragmented; thus, it is almost impossible to have a project completed without changes to the original plan or the construction…
Abstract
Purpose
Construction process is complex and traditionally fragmented; thus, it is almost impossible to have a project completed without changes to the original plan or the construction process. The purpose of this study is to identify and examine the causes of variation orders, ascertain their effects and establish the cost and time performance implication as a result of variation orders.
Design/methodology/approach
This study obtained information from 90 construction stakeholders on 30 completed educational building projects to ascertain the causes and effects of variation orders on project delivery using questionnaire survey. In addition to this, a pro forma document was designed to obtain the project characteristics, cost and time data from these 30 completed educational building projects. Factor analysis was used to categorise the causes of variation orders, while severity index was used to examine their effects on project delivery. The hypothesised statement was tested using paired t-statistics to examine whether a statistically significant difference existed between variation orders, cost and time performance of the projects.
Findings
The study identified 13 main factors as causes of variation orders and the results revealed that the most frequent effects of variations were increase in construction costs, time, client dissatisfaction, increase construction project rework and demolition and project abandonment. The results also showed that variation orders had significant effects on both cost and scheduled performance of the educational building projects with average cost and time escalation of 33.95 and 29.45 per cent of the original project cost and time, respectively, for the entire projects studied, while average cost implication of variation orders is 23.79 per cent.
Practical implications
The findings in this study will be of assistance to government agencies and management of public works in higher institutions of learning in managing variations in construction projects. The study will also add to the current literature on the impact of variation orders on educational building projects in developing countries. Finally, it will create the much-needed awareness on the severity and implication of change or variation orders on project delivery.
Originality/value
The study identified and examined the causes of variation orders, ascertained their effects and established the cost and time effects of the causes of variation order on project performance. This will assist project initiators, contractors, consultants and other stakeholders to fully appreciate and understand the significant effects of variation orders on project performance.
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Basil P. Tucker and Elaine Nash
The paper presents the initial groundwork for the development of a research agenda around the management control implications of employing workers with intellectual disability.
Abstract
Purpose
The paper presents the initial groundwork for the development of a research agenda around the management control implications of employing workers with intellectual disability.
Design/methodology/approach
The point of departure of this foundational enquiry is primarily prior analyses and critiques of empirical research into the employment of workers with intellectual disabilities.
Findings
The authors extend the management control framework advanced by Tessier and Otley (2012) by offering insights relating to the benefits and costs of both compliance as well as performance roles of management control systems (MCS). As such, the authors advocate potential avenues for further empirical investigation and also offer four broad ways in which the use of MCS is implicated in the employment of individuals with an intellectual disability by recognising that achieving compliance outcomes or achieving performance outcomes both carry associated benefits and costs.
Research limitations/implications
The extent to which management control research has engaged with the context of workers with intellectual disability is limited. However, this paper identifies some of the salient considerations underlying an agenda for further research in this area.
Social implications
The employment of workers with intellectual disabilities is by no means unprecedented. In many Western economies, there have in recent times been significant disability policy shifts, recognising the key role of employment in the financial security and social participation of people with disabilities, including those with intellectual disabilities. A key performance indicator stated in these policy positions is an increase in workforce participation for this group of people. However, an increase in the employment of such individuals is likely to represent significant implications in terms of prevailing conditions as well as new management control configurations that may be required.
Originality/value
The paper overviews existing knowledge about the employment of workers living with an intellectual disability and identifies areas relating to the management control implications of such arrangements within which more research is required.
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Marilyn M. Helms, Lawrence P. Ettkin, Joe T. Baxter and Matthew W. Gordon
The target costing method works “backward” from traditional cost‐plus methods and begins with a targeted sales price for a product. This price is set based on what the customer is…
Abstract
The target costing method works “backward” from traditional cost‐plus methods and begins with a targeted sales price for a product. This price is set based on what the customer is willing to pay. It considers not only the preferred current selling price but also the later life cycle pattern of prices. This technique has key managerial implications. This article considers these implications along with implementation guidelines. Examples of industries successfully using target costing are included. Ongoing controversies concerning where the techniques can best be used are discussed. Further considered are international differences in target costing as well as challenges of global outsourcing along the supply chain. The article ends with implementation challenges, significance for practice, and suggestions for future research.
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