Purpose -In spite of the increased research activity on inter-organizational cost management (IOCM) and open-book accounting (OBA), detailed evidence on the application of these tools in real-life settings is still relatively sparse. Increased outsourcing and supplier responsibilities call for more thorough understanding on the possibilities and variations of supply chain cost management. As a research avenue, in-depth case studies have been invited to elaborate the cost management interaction between companies. This paper aims to address these issues. Design/methodology/approach -This paper is based on an interventionist research within two supply networks. By making research interventions on the development of cost management practices among the suppliers, the researchers have set the ground for implementation of OBA, which, then, has provided a box seat to observe the process of OBA and its associations with the different forms of control. Within these two networks, this paper focuses on two OBA episodes portraying different facets of openness in IOCM. Findings -This paper presents OBA as an accounting template with a seemingly flexible character. By relying on the empirical study, the paper shows how OBA might be used for mitigating the component's price increasing pressures and, thus, controlling the costs of the end product in hybrids resembling very much market conditions. However, the very similar OBA procedures can be applied for achieving the long-term goals of partnering in hybrids resembling to a great extent hierarchical structures. As the paper shows, the best corresponding control archetype for a given OBA application largely depends on the purpose defined for the IOCM activity by participating stakeholders. Originality/value -Thus, far, there are no interventionist studies on OBA and, hence, the research setting provides an interesting new element to the extant literature on OBA and IOCM. However, the research method does not have intrinsic value. Thus, the contribution, and therefore also the originality, of this paper is based on new aspects provided to the theory on OBA.
Purpose -The purpose of this paper is to examine the potential benefits of a business game on customers' business in enhancing servitization. The concept is proposed to be helpful in the phases of defining the servitization initiative and gaining shared understanding about it at a manufacturer. Design/methodology/approach -The paper is based on a longitudinal case study at a manufacturer (2003)(2004)(2005)(2006)(2007)(2008), with a focus on the business game concept on customers' business. The researchers and approximately 140 company representatives contributed to both early and later phases of the development of the concept. Findings -The business game concept appeared to serve the purpose of generating and sharing ideas about the customers' business and the desired role of the OEM in it, as a potential outcome of servitization. The concept synthesizes the previously fragmented customer awareness across the business units and provides useful information for various stakeholders. The presence of personnel across the different business units and from a key customer company in the game events enabled new types of discussion related to the servitization initiative.Research limitations/implications -The concept presented in this paper represents a potential tool for enhancing a servitization initiative. Due to the limitations of the case, the findings are tentative and primarily transferrable to contexts where a manufacturer provides machinery for industrial production. Moreover, the ability of the concept to capture real-life customer values is critical for success and thus should be carefully examined. Originality/value -The case study enables an in-depth view of the phenomena under examination. Moreover, due to the researchers' interventions in developing and using the concept, they observed actual processes of overcoming the challenges of servitization.
PurposeThe purpose of this paper is twofold. First, it aims at defining the concept of the downstream shift in the context of the machinery manufacturers. The second aim of the paper is to analyze the potentially enabling role of remote technologies in that shift.Design/methodology/approachBesides examining the development of the supply chains based on the literature and a case company, the paper refers to the case of the remote technologies developed and used by the case company for the years of 2003‐2008.FindingsThe key finding of this paper is that no consensus exists on the favourable scope and content of the downstream shift aimed at by the machinery manufacturers. Respectively, the potential role of the technologies in the shift can also vary on a case‐by‐case basis. Based on the case study, instead of new sources of service revenues, the information processed with the help of the remote technologies may provide an opportunity for the machinery manufacturer to learn from its customers, thus offering a sound basis for various R&D and sales and marketing activities.Research limitations/implicationsThis paper can be considered as a pre‐study towards understanding about the true drivers of the downstream shift and their success factors. Technologies constitute one enabler in the shift, and its potential roles, together with the context specific factors, require further attention.Practical implicationsThe paper offers valuable insights into the development of the supply chains. Moreover, it takes a critical perspective on the positive expectations connected with the downstream shifts by the machinery manufacturers.Originality/valueThe longitudinal perspective to the case environment provides a sound basis for analyzing the development of the supply chain at hand.
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