Search results

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).

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

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.

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.

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.

Theories of platform strategy and adoption have been largely derived from studies of their application in the information and communications technology (ICT) sector. These platforms vary in openness, with the model of open source software providing the best-known exemplar for open platforms.

This exploratory field study examines the degree to which nine attributes of ICT platforms are applicable to open platforms in biotechnology. Using a combination of interview and secondary data, it identifies three patterns of such biotechnology platforms – IP commons, hackerspaces, and crowdsourced patient registries – and the degree to which these nine attributes apply. It shows the impact of ICT platforms and open source software on open source approaches to biotechnology, and how the latter are affected by the technical, legal, and institutional differences between information technology and biotechnology.

Instead of open source software platforms organized around modular interfaces, complements, ecosystems, and two-sided markets, this study instead suggests a model of open source knowledge platforms which benefits from economies of scale but not indirect network effects. From this, it discusses the generalizability of the ICT-derived models of open source platforms and offers suggestions for future research.

The Globally Networked Organization (GNO) is an archetype of the geographically distributed, globally integrated, and organizationally networked information-age multinational enterprise. While its organizational form has been widely discussed, methods for providing strategic direction to all or part of a GNO have been largely overlooked. We propose the concept of strategic animation as an innovative leadership approach to strategic management in the GNO and offer a set of guiding principles for installing such a system in organizations. Strategic animation employs sophisticated incentives to motivate voluntary buy-in, utilizing principles of self-organization to replace the command and control of the unitary firm and the uncertainty and transactional costs of real markets. This makes possible virtual integration of the multiple highly separable businesses that comprise the value-added proposition of the firm and encourages the development of emergent processes for both exploitation and renewal of assets. From a scholarly perspective, this model suggests a new framework for studying the strategic direction of GNOs. For practice, it offers an organizational solution to conditions where process control is preferred, but command of resources is limited. Strategic animation, set in motion through multiple managerial actions, facilitates the timely and flexible responses to chaotic environments that are the sine qua non of today’s global businesses.

This chapter develops a conceptual framework to help us position and understand the increasing importance of project-based innovation for industrial organization in the 21st century. It builds on and extends Joan Woodward's (1958 and 1965) pioneering research, which classifies industrial organizations according to the complexity of production technology and volume of output. We suggest that a radical revision of Woodward's framework is required to account for the extensive use of project-based organizations to gain competitive advantage through accelerated innovation and growth in new technologies and markets.

The concept of modularity has gained considerable traction in technology studies as a way to conceive, describe, and innovate complex systems, such as product design or organizational structures. In the recent literature, technological modularity has often been intertwined with business model innovation, and scholarship has started investigating how modularity in technology affects changes in business models, both at the cognitive and activity system levels. Yet we still lack a theoretical definition of what modularity is in the business model domain. Business model innovation also encompasses different possibilities of modelling businesses, which are not clearly understood nor classified. We ask when, how, and if modularity theory can be extended to business models in order to enable effective and efficient modelling. We distinguish theoretically between modularity for technology and for business models, and investigate the key processes of modularization and manipulation. We introduce the basic operations of business modelling via modular operators adapted from the technological modularity domain, using iconic examples to develop an analogical reasoning between modularity in technology and in business models. Finally, we discuss opportunities for using modularity theory to foster the understanding of business models and modelling, and develop a challenging research agenda for future investigations.

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.

The absence of the reasoning stage in the analysis of long-term investment decision creates a serious gap in this classic topic in management accounting literature. The purpose of this paper is to fill this gap. The traditional analysis focuses on the evaluation stage using capital budgeting tools to rank alternative investment proposals. It tacitly assumes that the decision is to be made, thereby bypassing the reasoning stage. However, the reasoning stage may reveal that there is no sufficient justification (reasoning) to consider searching for and evaluating alternative proposals for this decision. Focusing on the reasoning component, the paper combines Fritz's (1989, 1990) “creative tension” and Janis and Mann's (1977) “challenges” as the driving forces for the problem-finding step. To demonstrate the significance of filling the reasoning gap in the long-term investment decision, the paper selects the modular manufacturing system and the complex investment decision required for its adoption. Using hypothetical data, the paper employs the Dempster-Shafer Theory of Evidence and Omer, et al's (1995) algorithm to compute the belief and plausibility values of the three reasoned actions: (1) maintain the status quo, (2) adopt Level 2 (assembly) modularity or (3) adopt Level 2 (design) modularity.

The contributions of the paper include (1) highlighting a critical gap currently existing in one of the classical decisions in the management accounting literature; (2) developing a framework for filling this gap and (3) applying this framework to the intricate nature of the modular manufacturing system and its complex investment decision.

This research paper aims to better understand the network structure of higher education in North America. It draws on a relationally networked dataset of 1,292 degree-granting colleges and universities in North America to develop a modularity class approach to categorizing colleges and universities based on their own self-defined peer networks and assesses the utility of the modularity class approach as well as several measures of network centrality for predicting offerings of new curricular fields. Results show that not all measures of network centrality equally predict organizational change outcomes, with hub/authority position being most important. Additionally, results show that an empirically derived modularity class approach to categorizing organizations has important strengths in relation to more typical approaches based on prestige or perceived organizational characteristics. The approaches detailed in this paper will be useful for future analysts seeking to explain the spread of innovations and behavior across the higher education institutional field, as well as those seeking to understand clustering and organizational divergence.