Interorganizational Cost Management in the Exchange Process

Abstract

Abstract This paper explores interorganizational cost management (IOCM) practices in the exchange process. IOCM can be defined as buyers’ and suppliers’ coordinated efforts to reduce costs. Past research has primarily argued that such practices depend on component characteristics, relationship characteristics, and characteristics of the transaction. Based on a study of three buyer-supplier relationships, this article finds that IOCM practices also vary between six phases of the exchange process. In this process, the supplier’s management accounting is found to be more important than recognized by prior research. The deepest collaboration around IOCM issues and the greatest joint use of suppliers’ management accounting typically occurs in earlier phases of the exchange process, including supplier selection, joint product design and joint manufacturing process development. In later phases, during full-speed production as well as in product and manufacturing process redesign, suppliers’ managerial accounting appears to play a lesser role.

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• Interorganizational Cost Management in the Exchange Process. (deposited 02 May 2008 08:36) [Currently Displayed]
  • Interorganizational cost management in the exchange process. (deposited 22 Oct 2008 11:57)
    • Interorganizational cost management in the exchange process. (deposited 26 Nov 2008 08:50)