Search results

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.

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

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.

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.

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

In this paper we appraise the ways in which use of closed-system proprietary product architectures versus open-system modular product architectures is likely to influence the dynamics and trajectory of new product market formation. We compare the evolutions of new markets in China for gas-powered two-wheeled vehicles (G2WVs) based (initially) on closed-system proprietary architectures and for electric-powered two-wheeled vehicles (E2WVs) based on open-system modular architectures. We draw on this comparison to suggest ways in which the use of the two different kinds of architectures as the basis for new kinds of products may result in very different patterns and speeds of new market formation. We then suggest some key implications of the different dynamics of market formation associated with open-system modular architectures for both the competence-based strategic management (CBSM) of firms and for technology and economic development policies of governments.

Specifically, we suggest how the use of open-system modular product architectures as the basis for new products is likely to result in dynamics of new market formation that call for new approaches to the strategic management of innovation and product creation. We also suggest technology and economic development policies favoring use of open-system modular architectures may stimulate new market formation and related economic development by providing platforms for accelerating technology development and dissemination, facilitating the formation of an industrial base of assemblers and component suppliers, assisting new firms in building customer relationships, enabling more geographically diffused economic development within countries, and facilitating development of export markets. We also suggest directions for further research into the potential for open-system modular product architectures to enable bottom-of-the-pyramid innovation processes, frugal engineering in developing economies, and development of low-cost product variations more generally.

The traditional product-costing continuum is too limited to account for the new mass customization approach currently used by many corporations in many industries. Mass customization has changed the nature of many transactions, activities and, indeed, the very essence of many manufacturing companies, who have become more of assemblers than manufacturers. These new developments necessitate establishing new way of accounting for proper planning and control. After tracing the development of the mass customization approach from modular manufacturing into common platforms applied in one firm, and then shared by a group of firms, the paper explains the benefits of these approaches to both manufacturers and their suppliers. The central theme of this paper is to develop a product costing system for mass customization. It begins with the traditional product-process matrix in operations management literature and adds to it two elements: firm size and the modular manufacturing method. The rationale for this addition is that modular manufacturing is the best mass customization method; firm size and mass customization are inherently related as indicated by the typical evolutionary pattern of production processes. At this point, the operations management taxonomy is renamed the modular-process matrix; this matrix displays three groups of major activities: manufacturing, supplemental manufacturing, and assembling activities. These three activity groups provide the basis for developing a new set of accounts and a ledger system to account for specific customer orders developed by mass-customization processes.

Public procurement is important in itself but is also an important intervening force in some business networks. Two aspects are of particular interest. The first is that public purchasing is an important ingredient in public policy in relation to a number of business networks; it is substantial in areas such as transportation, communication, health care and defence, where the ‘public’ is often the most dominating actor. As such it can be one of the measures in innovation policies, as well as in regional and local development policies. The second aspect is that public purchasing is highly regulated by law, based mostly on the assumption of ‘homogeneous, competitive, product markets’. That restricts public procurement in forming close and continuous supplier relationships, thus making more effective use of these relationships, particularly for development purposes. A consequence is that suppliers’ capabilities cannot be used in the same way as in the private sphere. The chapter concludes with a discussion of current developments in regulation that allow closer collaboration with suppliers and the likely benefits, a feature that has been evidenced in prior Industrial Marketing and Purchasing (IMP) research.

Our economies are rapidly evolving toward being primarily service-driven, with information and communication as fundamental drivers for the service deployment. Strategic choices are increasingly driven by other parameters than the traditional goods-driven industrial type of economies. In this paper, the major drivers for making strategic choices in a competitive service economy are examined. It is shown how the competition in services based on information and communication technology (ICT) is competence-based. Competition aims at bringing additional value through services, but may also deploy specific techniques to stop value from leaking in particular business processes. Value creation and prevention of value leaks cannot just rely on the traditional material-based techniques, which are grounded in the strong tangible nature of the traditional economies. Today ICT-based services involve creative combinations of technologies, resources, and assets to answer as well as anticipate the growing demand for flexible solutions that create sustained added value. In this paper, the particular role of imperfections in service systems is explored, extending the well-known theories of information imperfections. Imperfections are not always solved but are sometimes even maintained in favor of sustained competitive advantage. Various ways to realize service rent are discussed with extensive examples. The concluding part of the paper points to some crucial service configuration issues, including the need for a sufficient degree of corporate-wide standardized service components and interfaces to address the growing demand for agility in competence-driven markets.

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.

The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.

In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.

The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.

Scholars have been conducting serious research mainstream on the human, organizational and cultural aspects of mergers and acquisitions (M&A) for more than three decades. The current globalization is faced by the challenge to meet the continuously growing worldwide demand for capital and consumer goods by simultaneously ensuring a sustainable evolvement of human existence in its social, environmental and economic dimensions. Currently, a new era of M&A is emerging through a wave of strategic investment decision-making toward Industry 4.0 (I4.0) strategy. The new waves of M&A can be viewed as comprehensive integration of manufacturing systems, production processes, digital communications technologies and automated machines. I4.0 strategy will make supply chains and production processes more interconnected, efficient and flexible, allowing mass-customization and virtual production. This chapter offers state of the art review of I4.0 based on recent developments in research and practice. This chapter offers an overview of opportunities and challenges associated with M&A activities toward I4.0, and suggestions for future research.

For decades, the fast population growth worldwide was interrelated with the adopted rapid lifestyle behavior that relies on the extensive use of fossil fuels. This primary energy source has caused various urban and environmental impacts, such as global warming, air pollution, and so forth. Consequently, the identified circumstance issues have caused many health, social, and economic hindering effects for global citizens. It poses an existential threat to humanity and the global earth's ecosystem. The alarming levels of urban pollution emissions are putting enormous challenges to the related stakeholders (governments, businesses, investors, automakers, and citizens) to admit the need to decarbonize the global economy and reach sustainable development goals (SDGs) for cleaner and smarter cities across borders. As such, a vital part of a smart city is the transport sector. The road transport sector, precisely, is one of the primary consumers of fossil fuels that contribute to high carbon dioxide emissions. Accordingly, it is essential to adopt novel and sustainable urban transport solutions and promote the achievement of the SDG's eleventh goal for sustainable cities and communities. This chapter provides insight into the present global energy situation with particular attention to the road transport sector. Indeed, it highlights different emerging technologies for a sustainable and smart urban mobility future that will mitigate the environmental situation thanks to the development of drive and internet telecommunication technologies. Furthermore, we aim in this chapter to study the international progress of the transition project using the Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) analysis methodology. This study is to pinpoint opportunities for project development and the challenges that set back its evolution.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.