Effect of internal cost management, information systems integration, and absorptive capacity on inter-organizational cost management in supply chains

Fayard, Dutch; Lee, Lorraine S.; Leitch, Robert A.; Kettinger, William J.

doi:10.1016/j.aos.2012.02.001

Cited by 117 publications

(166 citation statements)

References 83 publications

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“…In the absence of a sufficient within-firm IS infrastructure, the quality of the data input for the between-firm IS system is not likely to be satisfactory. By the same token, if a firm does not have good between-firm IS infrastructure in place, it cannot receive updated demand information, supplier information, or customer information needed to support effective within-firm IT systems (Fayard et al, 2012). Flynn et al (2010) suggest that the impact of internal integration on external integration can be explained from three major perspectives: information sharing, strategic cooperation or alliance, and working together.…”

Section: Internal Is Integration and External Is Integrationmentioning

confidence: 99%

“…)", (3) "Status changes within our firm (such as account balances or forecasts) are automatically reflected within our firm's information systems (e.g., inventory, manufacturing resource planning, and manufacturing systems)", and (4) "Our firm's employees are able to retrieve information from various databases for decision support (e.g., cost information, reporting tools)" (Barua et al, 2004;Fayard et al, 2012).…”

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

“…We also measured external IS integration using four items: (1) "Our firm and our partner firm have information systems that facilitate information exchange across firm boundaries", (2) "Our firm and our partner firm have inter-organizational information systems that support the easy exchange of information", (3) "Our firm's information systems are connected to our partner firm's systems, allowing data to be shared easily between firms", and (4) "Our firm's systems can easily transmit, integrate, and process data with our partner firm" (Vickery et al, 2003;Barua et al, 2004;Fayard et al, 2012).…”

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

“…As in Fayard et al (2012), the responses to these items were used to calculate a measured value for each construct. We specifically asked respondents to "consider a business partner, either a customer or a supplier, that is very important to your employer and with whom you are familiar" (ibid., p. 7).…”

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

“…To help clarify the impact of IS integration on firm profitability, we first follow Fayard et al (2012), Bergeron and Raymond (1992), and Ward and Zhou (2006) by categorizing IS integration into two distinct, but closely related, capabilities: internal IS integration and external IS integration. Internal IS integration refers to a firm's electronic links in information technology applications to data acquisition and storage systems that facilitate the sharing of accurate and timely information in support of cross-functional processes (Hammer, 2001).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

Maiga

Nilsson

2015

International Journal of Production Economics

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a b s t r a c tThis paper proposes that the impact of information systems (IS) integration on manufacturing firm profitability is underestimated as a result of inadequate attention to indirect effects. The study uses structural equation modeling to investigate the associations among internal and external information system integration, quality and cost performance, and firm profitability. Overall, the results from a mail survey of 263 member firms of the Institute for Supply Management support the theoretical model. Results indicate that (a) internal IS integration has a significant positive association with external IS integration, (b) both internal IS integration and external IS integration are significantly positively associated with cost and quality performance, (c) quality performance is significantly positively associated with cost performance, and (d) both quality and cost performance have significant positive associations with firm profitability. However, the direct effects of internal and external IS integration on firm profitability are not significant. Rather, the association is through cost and quality performance, suggesting that both cost and quality performance act as intervening variables. This study extends the literature on IS integration by providing insights into a set of interrelationships that matters for the attainment of firm profitability from IS integration.

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Section: Internal Is Integration and External Is Integrationmentioning

confidence: 99%

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

Maiga

Nilsson

2015

International Journal of Production Economics

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Strategic Benefits of Integrating the Managerial Accounting Function With Supply Chain Management

Vann¹

2016

J Corp Accounting Finance

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The importance of supply chain management has increased over time as a result of more intense global competition, shorter product life, and rapidly changing technologies. This study examines recent academic research to offer practitioners insight into the benefits of incorporating three‐dimensional concurrent engineering and strategic cost management into the design of their supply chain. It has been shown that this integration can enable companies to achieve their strategic goals of improving their organization's operational and financial performance, reducing costs, increasing customer value and satisfaction, and maintaining a competitive advantage in the marketplace. © 2016 Wiley Periodicals, Inc.

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Sustainability reporting: How consistency and interdependence in financial and managerial accounting enhance eco‐controls

Varma,

Mancini,

Kaushik

2024

Journal of Public Affairs

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Sustainability reporting requires consistency and interdependency of financial accounting and managerial accounting. Accounting is closely entangled with the eco control (EC) in organisations. The quality of (sustainability) reporting and the disclosures is only as good as the quality and consistency of accounting data captured. Therefore, accounting choices and practises have an important role to play in sustainability reporting. This study explores the mechanism through which accounting informs EC. Through the independent and serial use of two levers, first ‘interdependency’ between financial accounting and management accounting and second, though the use of ‘digitalized information’ as a moderating variable, it is probed as to how EC are shaped. An empirical investigation is undertaken by carefully curating primary data, analysed through partial least squares structural equation modelling technique to inform broader debates in the ‘sustainability reporting’ literature concerning the mechanisms through which EC, are influenced by accounting mechanics, choices and disclosures. Sound EC contributes to sustainability accounting and governance to meet needs of the firms direct and indirect stakeholders without comprising the firm's ability to meet the needs of future stakeholders. The study established that the interdependency between the financial accountants and the management accountants output, mediates the effect of a consistent financial language on EC practises and this effect is independent of the firm size or the industry category. This article brings to the fore, the interplay of FA and MA in informing the environmental controls. The under researched perspective addressed by this study is that EC are highly interdependent with the consistency and comprehensiveness of accounting that informs it which in turn is effected by the cooperation and coordination (interdependency) between FA and MA information providers.

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Effect of internal cost management, information systems integration, and absorptive capacity on inter-organizational cost management in supply chains

Cited by 117 publications

References 83 publications

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

Strategic Benefits of Integrating the Managerial Accounting Function With Supply Chain Management

Sustainability reporting: How consistency and interdependence in financial and managerial accounting enhance eco‐controls

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