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1 – 10 of over 10000Antti Ylä-Kujala, Salla Marttonen-Arola and Timo Kärri
The role of management control is frequently emphasized in connection with inter-organizational relationships and value networks. For example, boundary-spanning cost and…
Abstract
Purpose
The role of management control is frequently emphasized in connection with inter-organizational relationships and value networks. For example, boundary-spanning cost and accounting control techniques have been studied in multifaceted empirical settings. The prevalence of such techniques is, however, currently unknown in conjunction with companies’ interests to increase inter-organizational integration in general. Additionally, also the nexus between the internal state of cost management and the company’s willingness to develop inter-organizational relationships requires further investigation. The paper aims to discuss these issues.
Design/methodology/approach
The study is based on an extensive survey that was responded to by more than 1,500 CEOs and CFOs from large, medium-sized and small Finnish enterprises in a variety of industries. As the authors chose the mixed-methods approach, both quantitative and qualitative data were collected for the study.
Findings
The findings suggest that companies can be allocated to five clusters: “the cost experts,” “the trustful,” “the holdouts,” “the trailblazers” and “the uncertain”. When the networking-oriented clusters, “the trustful” and “the trailblazers” are combined, the authors can conclude that 40 percent of the studied companies are interested in increasing inter-organizational integration. However, only 7 percent have boundary-spanning techniques in use. There is also a correlation between interest in integrating and developing cost management.
Research limitations/implications
This paper contains several theoretical implications, although further research, e.g. comparative studies, is required to verify the findings. The scarcity of managerial implications can be regarded as a limitation.
Originality/value
This paper fills several untapped research gaps by studying inter-organizational integration in the cost management context from multiple, complementary perspectives with a particularly large set of data.
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Mohammed Belal Uddin, Yuanlue Fu and Bilkis Akhter
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…
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.
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The purpose of this study is to examine how the management accounting practice in an organisational unit affects the ability to conduct inter‐organisational control.
Abstract
Purpose
The purpose of this study is to examine how the management accounting practice in an organisational unit affects the ability to conduct inter‐organisational control.
Design/methodology/approach
Governmentality is used as the main theoretical basis for the interpretation of empirical data. A qualitative case study is used to gather information from an electronics company.
Findings
The company enters its inter‐organisational relationships with the ambition of being in power in the relationship. To begin with, management accounting plays a central role in the negotiation process. Due to inadequate management accounting practices, the company is unable to include cost information in their response to proposals made by their suppliers during negotiations. Consequently, the cost aspect of the product fades away from negotiations as they progress.
Originality/value
The study concludes that an important part of management accounting practice is to reveal the intra‐organisational cost consequences of proposals made by suppliers during negotiation processes. These cost consequences are central during negotiation processes since they will keep the focus on costs and cost improvements during the negotiation process. The study indicates that accounting technologies and the physical presence of the management accountant are not sufficient to keep costs on the agenda. Constant cost consciousness requires that the management accountant actively takes part in the joint problem solving process.
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The purpose of this paper is to summarize and analyze what is known regarding activity-based costing (ABC) applications in the context of supply chain management (SCM). The…
Abstract
Purpose
The purpose of this paper is to summarize and analyze what is known regarding activity-based costing (ABC) applications in the context of supply chain management (SCM). The authors present a reference framework for practical implications and areas for future research in intra-firm and inter-organizational environments.
Design/methodology/approach
The findings underlie a systematic review methodology. Research gaps and guidance for further publications are derived from the reference framework based on ABC and SCM literature.
Findings
The review illustrates four main areas for further research: determination of the role of management accounting in SCM (including supply chain finance), integration of time-driven ABC with radio frequency identification (RFID) technology and automatic data collection, analysis of inter-organizational management tools in supply chains in multiple negotiation rounds, and standardization of cost accounting data in supply chains.
Practical implications
The review provides practitioners with three main recommendations: ABC applications require a solid data basis, organizational readiness, commitment from senior management, and an ABC management philosophy; open book accounting for inter-organizational cost information-sharing purposes needs institutional arrangements and economic incentive systems; and sharing costs and benefits among supply chain members requires a change of managers’ mind-set.
Originality/value
This paper reveals practical implications and provides new directions for research based on the reference framework. The paper contributes to the interdisciplinary topic between SCM and management accounting by providing a structured overview of 87 peer-reviewed articles from 1992 to 2016.
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Bakil DhaifAllah, Sofiah Md-Auzair, Ruhanita Maelah and Md Daud Ismail
This paper aims to investigate the effect of product complexity and communication quality on inter-organizational cost management (IOCM) and open book accounting (OBA) practices…
Abstract
Purpose
This paper aims to investigate the effect of product complexity and communication quality on inter-organizational cost management (IOCM) and open book accounting (OBA) practices in buyer–supplier relationships in Malaysian manufacturing firms.
Design/methodology/approach
A questionnaire survey was administrated to CFOs or accounting managers of Malaysian suppliers. Exploratory factor analysis and Structural Equation Modeling procedures were applied to test convergent and discriminant validity of the measurement model and examine the relationships among the latent constructs in the structural model.
Findings
The results suggest that IOCM and OBA scales show acceptable reliability and validity. The findings also report that both product complexity and communication quality have a positive effect on IOCM and OBA in buyer–supplier relationships. However, the results suggest that IOCM does not influence OBA practice.
Research limitations/implications
Although IOCM and OBA constructs exhibited satisfactory reliability and validity, future research is required to refine and further validate these constructs. The data were only collected from the supplier’s perspective. Thus, future research is invited to benefit from matched data from both suppliers and buyers to generate additional insights on IOCM and OBA.
Practical implications
This study may assist suppliers and buyers in relationships by suggesting that complex products require the adoption of IOCM and OBA practices to reduce information asymmetries and manage costs. Furthermore, emphasizing quality of communication may enhance the implementation of these practices.
Originality/value
Theoretically, this study contributes to the academic stream of management accounting and cost management as it enhances an understanding of contributions introduced in prior literature on IOCM and OBA. It uses a complementary approach of transaction cost theory (TCT) and social exchange theory (SET) to explain the research model. Methodologically, the study validated scales for measuring IOCM and OBA in a new environment.
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Marko Bastl, Tonci Grubic, Simon Templar, Alan Harrison and Ip‐Shing Fan
The purpose of this paper is to highlight the limitations of current accounting practices in an inter‐organisational context; introduce contemporary costing approaches used in…
Abstract
Purpose
The purpose of this paper is to highlight the limitations of current accounting practices in an inter‐organisational context; introduce contemporary costing approaches used in inter‐organisational costing (IOC) programmes; and identify the inhibitors of successful implementation of IOC programmes.
Design/methodology/approach
The paper uses a structured review of empirical and theoretical literature.
Findings
Traditional accounting practices do not adequately fulfil their role in the inter‐organisational context. Contemporary accounting practices overcome only some limitations of traditional accounting practices. The paper uncovers part of the complexity surrounding the implementation of IOC programmes and suggests that we are dealing with a broad inter‐disciplinary phenomenon.
Research limitations/implications
Conclusions are drawn on a conceptual level and further empirical investigation is encouraged.
Practical implications
The paper raises the awareness of the complexity surrounding the implementation of IOC programmes. The broad set of inhibiting factors could be effectively used by managers to assess the readiness of organisations involved in implementation of IOC programmes.
Originality/value
This research is the first that systematically addresses the problem of inhibitors in the implementation of IOC programmes. The broad scope of the paper sets the foundations for more focused research into specific inhibiting factors.
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Sinikka Lepistö, Justyna Dobroszek, Lauri Lepistö and Ewelina Zarzycka
This paper aims to explore controls within an inter-organisational relationship involving outsourced management accounting services from the contractor’s perspective.
Abstract
Purpose
This paper aims to explore controls within an inter-organisational relationship involving outsourced management accounting services from the contractor’s perspective.
Design/methodology/approach
Qualitative data from within the relationship are analysed in a legitimacy-theory framework, illustrating how controls within the relationship are intended to build the contractor’s legitimacy and what kinds of implications the controls have in relation to conflicts between interests inherent in the relationship.
Findings
The legitimacy perspective clarifies that while controls are aimed at ensuring efficiency for the client, they may also provide symbolic displays of the appropriateness of the contractor’s actions both at an inter-organisational level for the client and at an individual level for the contractor’s employees. While the contractor intends to build legitimacy with the client by demonstrating utility in the form of efficiency, the process also gives the client influence and allows the disposition in terms of shared values to be demonstrated. However, this process has some negative consequences for the contractor’s employees as it is insufficient for serving the boundary-spanning employees’ interests connected with the nature of their work. Hence, the same controls need to yield benefits and fair outcomes for employees. The controls simultaneously foster interconnections that contribute to permanence and formalise the outsourcing of complex services, thereby rendering such processes comprehensible and transferable to other settings, which can be seen to serve the contractor’s continuity interests.
Originality/value
The paper contributes to academic research by illustrating how controls within inter-organisational relationships not only steer boundary-spanners’ work to conform to a client’s needs but may also help to build legitimacy via symbolic properties in the presence of conflicting interests at both an inter-organisational and individual level. It specifically highlights the important role of boundary-spanners lower in the organisational structure, who both affect and are influenced by the intentions to build legitimacy with the client.
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The purpose of this article is to demonstrate how the quality of Qualitative Research in Accounting & Management (QRAM) is manifested through the conceptualization of knowledge…
Abstract
Purpose
The purpose of this article is to demonstrate how the quality of Qualitative Research in Accounting & Management (QRAM) is manifested through the conceptualization of knowledge about functioning actions that are applicable for local management accounting practices.
Design/methodology/approach
Drawing on language game theory and pragmatic constructivism, the paper analyzes the “practice doing” embedded in key language games of the case descriptions of three articles on intra-organizational buyer-supplier relations published in QRAM with the aim of revealing how they contribute to the development of a performativity in management accounting topos that integrates facts, possibilities, values and communication.
Findings
The analysis documents that the three QRAM articles on inter-organizational cost management make a common contribution to the knowledge related to what to do to make functional actions within the practice of inter-organizational cost management. Together, the articles provide conceptual rigour with a complexity in content that can encompass the four dimensions of integration.
Research limitations/implications
In providing a framework for analyzing practice relevance, the paper has implications for contemporary discussions on doing research that is relevant for practice.
Originality/value
The paper provides novel insight into the analysis of quality in management accounting research. Additionally, it provides a framework for reflecting on the accumulation of practice-relevant knowledge and identifying areas requiring more research.
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Michael Brandau and Andreas H. Hoffjan
The paper seeks to explore the extent of involvement of management accounting in strategic inter‐organizational decisions and control in the context of offshoring of services.
Abstract
Purpose
The paper seeks to explore the extent of involvement of management accounting in strategic inter‐organizational decisions and control in the context of offshoring of services.
Design/methodology/approach
For the present study, a multiple case study field research design was selected. A data‐bank media search identified companies actually offshoring their services. In total, 17 semi‐structured interviews with management accountants/managers were conducted in 14 of the identified companies. The interviews were analyzed using content analysis techniques.
Findings
Management accounting is involved in offshoring activities to a much lower extent than expected. The reasons range from contractual agreements between the different parties, which substitute in part for management accounting interventions, to competence problems in accounting departments. Therefore, management accounting often fails to provide support for strategic planning and coordination.
Research limitations/implications
The data obtained through the qualitative research approach have a low‐scaling level, which limits subsequent analysis to descriptive statistics only.
Practical implications
The paper identifies risks and actual problems associated with offshoring, which indicate an increased need for coordinated planning and information processing. Furthermore, it raises the question of how management accounting can overcome existing competence problems with respect to the support of strategic decision making, in order to fulfil its function within the company more efficiently.
Originality/value
Literature does not provide convincing evidence of the practical significance of management accounting in the context of strategic decisions and inter‐organizational relations. This paper shows that management accounting currently remains far removed from its function as a developer of strategic decisions and as a support function for corporate planning and coordination processes.
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