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Open Access
Article
Publication date: 13 April 2022

Marcielle Anzilago and Ilse Maria Beuren

This study aims to analyze the effects of interorganizational cost management and opportunism on the reflexes of relational norms on satisfaction with interorganizational

Abstract

Purpose

This study aims to analyze the effects of interorganizational cost management and opportunism on the reflexes of relational norms on satisfaction with interorganizational cooperation in franchised companies. The collective synergy arising from these relationships mainly seeks to increase competitiveness and commercial development. Windolph and Moeller observed that interorganizational cost management increases satisfaction in the relationship with partners, while relational norms attenuate the negative effect on supplier satisfaction.

Design/methodology/approach

A survey was carried out with managers of franchised companies in the food industry. The managers were identified on the social network Linkedin. After that, an invitation was sent to participate in the research. A total of 88 valid responses were obtained. The questionnaire consists of 40 extracted assertions. A pre-test was carried out to verify the comprehensibility of the wording of the assertions. Structural equation modeling with partial least squares (PLS-SEM) was used for data analysis. For analysis, validation and adequacy tests of the model were carried out, and executed in the software SmartPLS.

Findings

Survey results reveal that interorganizational cost management increases franchisor relationship satisfaction. Relational social norms mitigate the negative effect of opportunism on satisfaction with cooperation. And interorganizational cost management plays an important role in the relationship between relational norms and satisfaction with cooperation between franchisor and franchisees.

Research limitations/implications

However, limitations resulting from the methodological design of the research must be considered in the interpretation of the results, at the same time that they provide opportunities for new research. As for the methodological aspects, the study cannot be generalized to other branches of companies, because it is a sector with franchises with specific characteristics. It should also be considered that the study was limited to investigating the proposed model, but other constructs can be observed in the literature. Finally, to empirically assess the constructs of the theoretical model, research instruments from studies other than those considered here can be used.

Practical implications

This study contributes with relevant literature and the management practice of interorganizational cooperation by empirically demonstrating the importance of interorganizational cost management as a management control mechanism and to mitigate the effects of opportunism between franchisor and franchisees.

Social implications

It also contributes to the inclusion of social norms in the relationship between franchisor and franchisees with a view to increasing franchisee satisfaction with their franchisor, which also aims to mitigate the impacts of opportunism in this relationship. It contributes to the social order, as they reveal ways to mitigate possible conflicts between franchisor and franchisee and generate greater transparency in the relationship.

Originality/value

This study is justified by the fact that it investigates relational aspects of cooperation between franchisor and franchisees, a form of interorganizational cooperation that is growing in the market. It is also justified by highlighting the importance of interorganizational cost management as a means of mitigating the opportunistic effects between franchisor and franchisees, proving to be an important management mechanism. Research is especially important because interorganizational strategies have been spreading in corporate environments (Dekker, Ding & Groot, 2016) and the maintenance of the relationship is dependent on satisfaction with cooperation.

Details

RAUSP Management Journal, vol. 57 no. 3
Type: Research Article
ISSN: 2531-0488

Keywords

Book part
Publication date: 19 June 2012

Jan O. Piontkowski, Andreas Hoffjan, Maik Lachmann and Lukas D. Schuchardt

Purpose – Interorganizational cost management among companies can lead to significant cost reductions. However, the determinants of the implementation and long-term use of…

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.

Details

Performance Measurement and Management Control: Global Issues
Type: Book
ISBN: 978-1-78052-910-3

Book part
Publication date: 14 July 2006

Jane Cote and Claire K. Latham

Non-traditional performance indicators have gained broad acceptance in recent years. We continue this discussion and contribute to the knowledge base by employing trust…

Abstract

Non-traditional performance indicators have gained broad acceptance in recent years. We continue this discussion and contribute to the knowledge base by employing trust and commitment as two critical intangibles existing between organizations that directly and indirectly influence performance metrics. Each interorganizational contact creates a transactional history that influences cumulative perceptions of trust, that then guide outcome behavior. Using an interdisciplinary foundation, we test a causal model where formal and informal interorganizational relationship structures impact trust and commitment, which then stimulates performance outcomes. The healthcare industry provides the field context where we empirically test our model. A survey was administered to physician practice professionals to measure the theoretical dimensions of the dyad's relationship structure, including antecedents to the mediating variables, trust and commitment, and the resulting outcome constructs. Results demonstrate that relationship dynamics are vital drivers of tangible outcomes. Trust and commitment emerge as variables to be explicitly managed to improve performance.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-84950-447-8

Article
Publication date: 11 July 2022

Hrishikesh Desai

The purpose of this paper is to develop a meta-model that systematically aggregates and organizes research on “partner selection” in interorganizational relationships…

Abstract

Purpose

The purpose of this paper is to develop a meta-model that systematically aggregates and organizes research on “partner selection” in interorganizational relationships (IORs), which is scattered across several disciplines, to help future researchers explore various aspects of this control mechanism in a more consistent manner. This paper also aims at critically reviewing each aspect of this control mechanism examined in the prior literature and identifying important research trends.

Design/methodology/approach

This paper conducts a comprehensive review and in-depth analysis of the key theoretical and empirical research findings on partner selection in IORs by identifying 172 papers across 46 journals that specifically discuss this control mechanism. A meta-model approach is adopted to review and identify the shortcomings in extant research and provide guidance to future researchers on exploring unanswered research questions. Moreover, maps are constructed using the Luft and Shields’s (2003) approach to graphically present the causal-model forms examined in this topic area.

Findings

This meta-model shows how the research on partner selection in IORs is scattered across different disciplines, resulting in its inconsistent evolution with researchers, in many cases, not being able to effectively synthesize contributions from fields that are not their own or not closely allied. The causal-model forms also enable rapid tracing of what has been researched.

Originality/value

There has been considerable research on control mechanisms in IORs till date. However, “partner selection,” which is an important control mechanism, has received little attention and is often neglected. To the best of the author’s knowledge, this paper is the first to develop a meta-model to consolidate knowledge on this topic that is important for further advancement of research.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 1 November 2006

Eva Labro

Supplier involvement in cost reduction efforts has been concentrated mainly in the product development phase of the life cycle of the product. Often this concentration on…

2278

Abstract

Purpose

Supplier involvement in cost reduction efforts has been concentrated mainly in the product development phase of the life cycle of the product. Often this concentration on the early phases of the product life cycle is defended with referral to the 80/20 rule that says that 80 per cent of the manufacturing costs are determined or committed during product design and development. The purpose of this paper is to look for empirical evidence that supports this rule and discuss the limited literature on joint buyer/supplier cost reduction programmes beyond the product development stage of the product life cycle.

Design/methodology/approach

An extensive literature survey on both the cost commitment rule and collaborative cost reduction programmes beyond the product development stage was conducted.

Findings

It was found that empirical evidence in the literature for the 80/20 rule on cost commitment in product design is only anecdotal. Even more surprisingly, compared to the literature on cost reduction in design phases, the literature on cost reduction efforts in later stages of the product life cycle is rather limited and usually ignores possibilities for supplier/buyer collaboration.

Research limitations/implications

Further empirical research (suggestions provided) should assess whether the identified lack of evidence is due to a gap in the empirical literature or to lower degrees of cost commitment and attention to cost efforts beyond product design indeed existing in practice.

Practical implications

This paper calls practitioners to revisit the cost commitment rule and check its existence in their specific contexts. As a result of this exercise, practitioners may want to consider implementing some of the techniques reviewed in the paper that can assist in collaborative cost reduction beyond the product development stage.

Originality/value

Given the amount of money involved, the general applicability of the cost reduction techniques to various industries and relationships with suppliers, the opportunities for huge savings and the fact that most firms usually have many products and/or technologies at maturity stage, my research makes an important contribution by identifying both a lack of empirical evidence in the literature on the notion that 80 per cent of the costs are committed in the design phase and the limited attention given in the literature to supplier/buyer cost reduction programmes in further stages of the product life cycle.

Details

Supply Chain Management: An International Journal, vol. 11 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Book part
Publication date: 29 March 2016

Marc Wouters, Susana Morales, Sven Grollmuss and Michael Scheer

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product…

Abstract

Purpose

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

Methodology/approach

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

Findings

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

Research limitations/implications

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

Originality/value

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

Open Access
Article
Publication date: 25 September 2018

Lara Cristina Francisco de Almeida Fehr and Welington Rocha

This paper aims to discuss the role of open-book accounting (OBA) and trust on buyer–supplier relationship satisfaction. The objective of this paper is to analyze how OBA…

2804

Abstract

Purpose

This paper aims to discuss the role of open-book accounting (OBA) and trust on buyer–supplier relationship satisfaction. The objective of this paper is to analyze how OBA and trust influence satisfaction on the relationship between suppliers and buyers in the Brazilian automotive sector’s supply chain.

Design/methodology/approach

The research has been developed based on a qualitative strategy, characterized as explanatory. Data gathering has been conducted through document analysis and semi-structured interview, and content analysis has been used for discourse analysis.

Findings

Results show that OBA is unilateral, imposed by the auto manufacturer, representing a selective information process, as suppliers try to protect their information value as far as possible. Trust is partial and cooperation is not spontaneous, both driven by the search for benefits. OBA may yield a positive or a negative outcome with regard to the social and the economic overall satisfaction of suppliers, depending on how the information is used by auto manufacturer.

Originality/value

The main contribution of this article is to provide an understanding of the difficulties of applying the OBA in companies and of the factors that may influence its operation and performance, impacting on satisfaction and continuity of relationships. The paper also contributes with the proposal of a clearer and more objective definition of OBA. Being the intention that new research in this area can be developed from a delimited, clear and objective definition of OBA, allowing better understanding on the subject and comparison among research studies.

Details

RAUSP Management Journal, vol. 53 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 10 August 2010

Ogan M. Yigitbasioglu

The purpose of this paper is to explain variations in discretionary information shared between buyers and key suppliers. The paper also aims to examine how the extent of…

5077

Abstract

Purpose

The purpose of this paper is to explain variations in discretionary information shared between buyers and key suppliers. The paper also aims to examine how the extent of information shared affects buyers' performance in terms of resource usage, output, and flexibility.

Design/methodology/approach

The data for the paper comprise 221 Finnish and Swedish non‐service companies obtained through a mail survey. The hypothesized relationships were tested using partial least squares modelling with reflective and formative constructs.

Findings

The results of the study suggest that (environmental and demand) uncertainty and interdependency can to some degree explain the extent of information shared between a buyer and key supplier. Furthermore, information sharing improves buyers' performance with respect to resource usage, output, and flexibility.

Research limitations/implications

A limitation to the paper relates to the data, which only included buyers. A better approach would have been to collect data from both, buyers and key suppliers.

Practical implications

Companies face a wide range of supply chain solutions that enable and encourage collaboration across organizations. This paper suggests a more selective and balanced approach toward adopting the solutions offered as the benefits are contingent on a number of factors such as uncertainty. Also, the risks of information sharing are far too high for a one size fits all approach.

Originality/value

The paper illustrates the applicability of transaction cost theory to the contemporary era of e‐commerce. With this finding, transaction cost economics can provide a valuable lens with which to view and interpret interorganizational information sharing, a topic that has received much attention in the recent years.

Details

International Journal of Physical Distribution & Logistics Management, vol. 40 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 9 October 2007

Henrik Agndal and Ulf Nilsson

The literature on activity‐based costing (ABC) that deals with the allocation of indirect purchasing costs primarily draws on a transactional approach to purchasing. This…

3106

Abstract

Purpose

The literature on activity‐based costing (ABC) that deals with the allocation of indirect purchasing costs primarily draws on a transactional approach to purchasing. This presents a problem, since a large share of purchasing takes place within relationships. The purpose of this paper is to point out complexities in applying ABC to indirect purchasing costs, when purchasing takes place within long‐term relationships. The interaction model is used as a framework.

Design/methodology/approach

A case study is conducted on a first‐tier supplier in the Swedish automotive industry to illustrate real‐life purchasing practices and to point out subsequent difficulties in applying ABC principles. This firm is selected because efforts have simultaneously been undertaken to employ supplier relationship management (SRM) and to implement costing techniques. About 23 interviews were conducted and approximately 31 hours of interview data were collected.

Findings

The case shows that many functions tend to be involved in exchange within long‐term relationships. This generates additional purchasing‐related costs not previously recognized in the costing literature. It also leads to difficulties in allocating these costs.

Originality/value

Complexities when implementing ABC are presented, concerning: allocation of costs relating to SRM; allocation of costs pertaining both to transactions and to relationships; less apparent cost drivers due to involvement of many functions in exchanges; and cost allocation over time.

Details

Qualitative Research in Accounting & Management, vol. 4 no. 3
Type: Research Article
ISSN: 1176-6093

Keywords

Book part
Publication date: 23 September 2014

Marc Wouters and Susana Morales

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing

Abstract

Purpose

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.

Methodology/approach

The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.

Findings

The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.

Research Limitations/Implications

The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.

Originality/value

The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.

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