Inhibiting Factors of Inter-organizational Cost Management Complementary Study

Abstract

The research problem of this study is based on the discussion of inhibitors related Interorganizational Cost Management (IOCM). Taking on an inductive logic, the studyś objective is exploratory by way of a qualitative approach, with the overall goal of analyzing which factors inhibit the applicability of Interorganizational 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 Interorganizational 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 Interorganizational 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.

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

“…The current competitive environment requires buyers and sellers coordination to reduce shared costs. This coordination to reduce combined costs is termed as inter-organizational cost management (IOCM) (Cooper and Slagmulder, 2004; Farias and Gasparetto, 2016). For managing cost, collaboration is vital among the allies in an inter-organizational setting (Hurmelinna-Laukkanen et al , 2012).…”

“…For IOCM practices, the formation of efficient internal cost management is necessary; at the same time, a robust IOCM capability is required (Fayard et al , 2012). Farias and Gasparetto (2016) argued that IOCM is not a technical issue; rather, the behavioral aspects of the people of the partnering firms are more important. Hence, corporate integration, inter-firm processes and mutual trust are highly essential for IOCM practice (Agndal and Nilsson, 2009; Bastl et al , 2010).…”

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

“…A recent study by Farias and Gasparetto (2016) sought to highlight the difficulties and factors relating to IOCM. The study divided these factors into three groups.…”