Inter-organizational Cost Management Research Articles

Synthesis of activity-based costing and deep learning to support cost management: A case study in the automotive industry

Activity based costing (ABC) models for cost management and big data analytics are deeply rooted in academia and practice to efficiently manage operational costs. Inspired by cost management and deep learning (DL) theories we develop a multilayer perceptron (MLP) using a nested particle swarm optimized (PSO) neural network algorithm for self-controlled architecture and weight optimization. This innovative approach enables to mimic ABC while increasing prediction accuracy. In a real-world case study we use wheel manufacturing data provided by a large original equipment manufacturer (OEM) and follow a full factorial experimental design. Furthermore, we benchmark our novel DL approach with results derived from a traditional ABC analysis. We demonstrate that this intelligent cost estimation model can mimic ABC using few cost drivers contributing to efficient and transparent interorganizational cost management. Major quantitative findings within a conducted field experiment demonstrate a high forecast accuracy with low absolute cost percentage error (CPE) deviation of the novel cost estimation approach in industry. The results extend the scope of PSO for the simultaneous optimization of the architecture and weights of neural networks. Additionally, we prove that the PSO algorithm is a suitable alternative to traditional optimization methods in DL.

Conditioning Factors of Interorganizational Cost Management in Manufacturing Companies

The aim of this study was to analyze the impact of conditioning factors in the adoption and use of interorganizational cost management practices in manufacturing companies. The data was collected through a questionnaire applied to the controllers of the manufacturing companies listed in B3. The sample consisted of 33 companies. The findings contribute to improving the understanding of how conditioning factors (Products, Components, Relationship Levels, Chain Types and Mechanisms) influence interorganizational cost management practices. The results indicate that conditioning factors, Relationship Levels and Mechanisms can influence the use of inter-organizational cost management practices. According to the results, it can be inferred that throughout the organization's trajectory it is necessary to establish partnerships with suppliers. In general, it is highlighted that sharing information between companies in the supply chain provides greater trust, favoring everyone involved in the supply chain.

Role of critical success factors in economic intelligence systems for improving the effectiveness of inter-organizational cost management (IOCM)

Determining the indicators of the success of these systems from its inception must be clearly documented for all parties involved in the work of the organization to achieve a high flow of implementation, by examining the type of correlation between the critical success factors of economic intelligence systems, and accounting information systems, as the current economic conditions show, Organizations usually use scattered and semi-structured external sources of information, and these days different groups of individuals contribute to the decision-making (stakeholders, customers, suppliers, and others), the scope of private decision in many cases has a global nature, regional and international interdependence requires exchange Expanded information and knowledge sharing, better collaboration between activities that are done unlike anything else in the past, and economic intelligence systems contribute to optimal business processes and resources, maximizing profits, improving proactive decision-making and reducing costs (Olszak and Ziemba, 2006: 47).

Relational norms and satisfaction with interorganizational cooperation

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.

THE EFFECT OF INTERNAL COST MANAGEMENT, INTEGRATION OF EXTERNAL AND INTERNAL INFORMATION SYSTEMS, AND FIBER CAPACITY ON INTER-ORGANIZATIONAL COST MANAGEMENT IN SUPPLY CHAINS (Empirical Studies in Manufacturing Companies in The Province of Banten)

Inter-organizational cost management is a strategic cost management approach to managing costs that span organizational boundaries in supply chains. Drawing on the resourcebased view of the firm, we develop a model to predict which inter-related resources might enable companies to manage inter-organizational costs. We test this model using a survey of managerial accountants whose organizations are part of a supply chain. Using structural equation modeling, we conclude that the resources of internal electronic integration, external electronic integration, internal cost management, and absorptive capacity play significant direct and indirect roles in the development of an inter-organizational cost management (IOCM) resource. We find that these resources are inter-related and together are useful in enabling companies to ultimately benefit from managing inter-organizational costs. We find in particular the importance of relational resources associated with absorptive capacity in the development of an IOCM resource. Our research contributes to theory and practice by explaining how specific resources can be combined in allowing companies to better manage inter-organizational costs. Data were analyzed using SEM with the aid SmartPLS software version 3.0

Inter-organizational cost management: effects of antecedents and methods in a hybrid relational context

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.

The effect of product complexity and communication quality on IOCM and OBA in buyer– supplier relationships

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.

Measuring Inter-organizational Cost Management and Open Book Accounting

ABSTRACT This paper reports the findings of a study aimed at developing valid measurement for inter-organizational cost management (IOCM) and open book accounting (OBA) constructs. The conceptualization of these measures were based on the prior literature in the context of supplier firms of Malaysian manufacturing sector. Using Structural Equation Modelling (SEM), measurement models of the constructs were tested and the scales were validated. The results indicated a satisfying model with acceptable reliability and validity. The findings of this study provide instruments that could be utilized as tools to assess the adoption of IOCM and OBA practices in buyer-supplier relationships. This paper extends the understanding on the concepts of IOCM and OBA practices through the introduction of a comprehensive scale covering wide dimensions of IOCM and OBA. Keywords: Inter-organizational cost management; open book accounting; new scales; buyer-supplier relationships. ABSTRAK Makalah ini melaporkan hasil kajian yang bertujuan membangunkan pengukuran yang sah untuk Pengurusan kos antara organisasi (IOCM) dan Perakaunan ‘open-book’ (OBA). Konsep bagi ukuran berkenaan adalah berdasarkan kajian lepas dalam konteks firma pembekal sektor perkilangan di Malaysia. Model pengukuran konstruk telah diuji dan skala telah disahkan menggunakan Pemodelan Persamaan Berstruktur (SEM). Hasil kajian menunjukkan model yang dibangunkan adalah memuaskan dengan tahap kebolehpercayaan dan kesahan yang boleh diterima. Dapatan kajian ini menyediakan instrumen yang boleh digunakan sebagai alat untuk menilai penggunaan amalan IOCM dan OBA dalam hubungan pembeli-pembekal. Kajian ini memperpanjangkan kefahaman tentang konsep IOCM dan OBA melalui skala komprehensif yang diperkenalkan yang meliputi dimensi IOCM dan OBA yang luas. Kata kunci: Pengurusan kos antara organisasi; perakaunan ‘open-book’; ukuran baru; hubungan pembeli-pembekal.

Measuring Inter-organizational Cost Management and Open Book Accounting

Measuring Inter-organizational Cost Management and Open Book Accounting

PENGARUH INTEGRASI SISTEM INFORMASI INTERNAL,INTEGRASI SISTEM INFORMASI EKSTERNAL,MANAJEMEN BIAYA INTERNAL DAN KAPASITAS DAYA SERAP TERHADAP MANAJEMEN BIAYA ANTAR ORGANISASI DALAM RANTAI PASOKAN(STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR DI PROVINSI BANTEN)

T his study aimed to examine the effect of Internal Information Systems Intregation, External Information Systems Intregation integration, Internal Cost Management and Absorptive Capacity on inter-organizational cost management in supply chains. Of the 84 questionnaires distributed, the number of questionnaires returned was 36 questionnaire (42,86%). The data is processed by using Structural Equation Modeling (SEM) by using a software program Partial Least Square (PLS) Verion 2.3.7. This study was conducted in Manufacturing company located in Banten province, with the Respondents in this study are financial managers, production managers, and marketing managers. This study uses survey research with primary data collection using the questionnaire.

The Effects of Inter－organizational Cost Management and Inter－organizational Relationship Control Systems on Supply－chain Performance

The Effects of Inter－organizational Cost Management and Inter－organizational Relationship Control Systems on Supply－chain Performance

The Relationships among Inter-organizational Cost Management, Inter-organizational Risks, and Organizational Performance

The Relationships among Inter-organizational Cost Management, Inter-organizational Risks, and Organizational Performance

Inter-Organizational Cost Management and Open Book Accounting: A Review

This paper aims to review the recent literature on inter-organizational cost management (IOCM) and open book accounting (OBA) practices, and their relationship with cost reduction. Based on the method used, a comprehensive review of relevant literature on this topic between 1992 and 2016, was sourced, collected, and summarized. Subsequently, two major findings were drawn. First, studies in the US, UK, and Japan dominated research on the area of IOCM and OBA, but, in recent years, more European and other countries are becoming involved. Second, the reviewed studies show that IOCM and OBA improve inter-organizational relationships, particularly, when the partners develop relational safeguards to prevent opportunism. However, the conclusions from the conceptual and case studies on the role of IOCM and OBA to reduce costs in the supplier-buyer relationships were contradictory. This paper furthers the understanding of the contributions introduced in prior studies on IOCM and OBA, and helps to identify some future research directions. Keywords: Inter-Organizational Cost Management, Open Book Accounting JEL Classification: M41, M49

INTER-ORGANIZATIONAL COST MANAGEMENT : PENERAPAN INTERNAL ELECTRONIC INTEGRATION, EXTERNAL ELECTRONIC INTEGRATION, DAN INTERNAL COST MANAGEMENT

The purpose of this study is to examine the implementing of internal electronic integration, external electonic integration in inter-organizational cost management. Data was collected by distributing questionnaires using purposive sampling technique to the respondents. Respondents are middle and lower level managers in Banten which of course involved in the budgeting process, with a total of 90 respondents. Data were analyzed using SEM with the help of SmartPLS. Results from this study revealed that the variable Internal Electronic Integration, External Electronic Integration and Internal Cost Management significant impact on Inter-Organizational Cost Management. Key Word : INTER-ORGANIZATIONAL COST MANAGEMENT, INTERNAL ELECTRONIC INTEGRATION, EXTERNAL ELECTRONIC INTEGRATION, INTERNAL COST MANAGEMENT

Inhibiting Factors of Inter-organizational Cost Management Complementary Study

<p>The research problem of this study is based on the discussion of inhibitors related Inter-organizational Cost Management (IOCM). Taking on an inductive logic, the study´s objective is exploratory by way of a qualitative approach, with the overall goal of analyzing which factors inhibit the applicability of Inter-organizational Cost Management. This study is a complement and completion of the debate initiated by Farias (2016). Fifty-four surveys retrieved from the literature were analyzed, which demonstrate the difficulties faced by companies in managing costs in a cooperative manner. Analysis on these studies could illustrate the perceptions held by different businesses, and list the difficulties faced by them, leading to the identification of 30 inhibiting factors. The diversity of the same highlights the interdisciplinary nature, as well as complexity, of the phenomenon in question. The study chose to divide the inhibiting factors into three groups, which relate to the developmental stages of inter-organizational relationships (planning, start of operations and maturation), with the inhibitors present in the three stages. Inhibitory factors related to People were found to be most predominant; the implementation of inter-organizational approaches requires not only changes in processes, but also in the adaptation of organizational behavior on part of those involved. Thus, the application of IOCM cannot be seen as a technical approach, guided by technology and management programs alone, and companies need to overcome internal barriers.</p>

Interorganizational Cost Management Study on Inhibitor

<p>Strategic cost management in supply chains is not a new concept. Coordinated actions between companies of the same chain, in order to reduce costs and end consumer price, offer opportunities for improved results. Interorganizational Cost Management (IOCM) is a structured approach with a broad vision, beyond the borders of the organization, which aims to reduce costs at the internal and external levels. Indeed, cost management is a complex issue that permeates all areas of the organization and may pose a number of difficulties to be implemented and sustained. Thus, this work has the overall goal of identifying, in the literature, the factors and conditions that inhibit the applicability of the Interorganizational Cost Management approach. To achieve these goals, an analysis was made of 35 academic research studies available in the literature that reported the difficulties faced by companies in cooperative cost management. The analysis of the studies showed the perceptions of different companies, and described the difficulties they face; therefore, the present research is qualitative and exploratory. Factors that inhibit IOMC were grouped into: (i) corporate strategy; (ii) integration of companies; (iii) people; (iv) intra- and interorganizational processes; (v) corporate training and education; (vi) disputes between companies; and (vii) lack of trust between companies.</p>

공급망 성과 개선을 위한 조직간 원가관리의 활용

This study empirically investigated the relationships among inter-organizational cost management (IOCM), cooperation with suppliers, information exchange between partners, inter-organizational learning, control integration, and the supply-chain performance of a firm. The results showed that the adoption of IOCM positively affects the collaboration between buyers and suppliers, which also leads to the increased information flow between them. According to the results of this study, it was found that inter-organizational information flow causes inter-organizational learning, and this learning contributes to the improved supply-chain performance. In this study, the positive effects of the cooperation with suppliers through IOCM on the control integration in supply-chains were not empirically confirmed. However, the impact of IOCM on control integration was significant and positive. Finally, the fact that the enhanced control integration can improve the supply-chain performance of a firm was empirically demonstrated.

Implementation of interorganizational cost management and its infrastructure: the case of a Korean ‘Chaebol’ firm

In this paper, purchasing innovation in the case of a distribution company is analysed from an interorganizational cost management (IOCM) perspective. In this company, purchasing costs play an important strategic role. This study suggests that a new practice of IOCM is necessary that is suitable for Korea's economic circumstances, including the family-controlled conglomerates (Chaebols) that dominate the entire economic system. The strong need to reduce purchasing costs within Chaebols and the Korean government policy that promotes joint growth of large and small firms are crucial factors in the successful implementation of IOCM practices. We also discuss the infrastructure that enables effective IOCM in the long term, thereby adding new findings to academic research in the area, and practical implications of this benchmark case for other companies planning purchasing innovations.

Identification and classification of open book accounting dimensions by considering inter-organizational cost management: A case study of petrochemical companies listed in Tehran Stock Exchange

Identification and classification of open book accounting dimensions by considering inter-organizational cost management: A case study of petrochemical companies listed in Tehran Stock Exchange

Identification and classification of open book accounting dimensions

Article history: Received February 28, 2014 Received in revised format 19 March 2014 Accepted 20 March 2014 Available online March 23 2014 This study aims to identify and to classify Open book accounting (OBA) dimensions according to inter-organizational cost management (IOCM). The study selects six university professors in the field of accounting and by studying the theoretical literature and conducted investigations inside and outside of the country, the OBA dimensions were identified and then they were classified by analytical hierarchy process technique. According to the studies and experts’ ideas, four dimensions including nature of data and accounting data disclosure practices, uses of disclosed accounting data, conditions of OBA, cost implementation of OBA were identified as OBA dimensions. The results of our survey indicate that the form of data disclosure as well as coordination and planning among team members played essential role for OBA development. In addition, trust and the cost of the second party were other important factors, which must be considered when OBA is applied in any industry.