Inter‐organisational costing approaches: the inhibiting factors

Abstract

Purpose-The purpose of this paper is: a). to highlight the limitations of current accounting practices in inter-organisational context; b). to introduce contemporary costing approaches used in inter-organisational costing (IOC) programmes and c). to identify the inhibitors of successful implementation of IOC programmes. Methodology/Approach-The research uses a structured review of empirical and theoretical literature. Findings-Traditional accounting practices do not adequately fulfil their role in the interorganisational context. Contemporary accounting practices overcome only some limitations of traditional accounting practices. The study uncovers part of the complexity surrounding the implementation of IOC programmes and suggests that we are dealing with a broad interdisciplinary phenomenon. Research limitations-Conclusions are drawn on a conceptual level and further empirical investigation is encouraged. Practical implications-The research raises the awareness of the complexity the surrounds the implementation of IOC programmes. The broad set of inhibiting factors could be effectively used by managers to assess the readiness of organisations involved in implementation of interorganisational costing programmes. Originality/value-This research is the first that systematically addresses the problem of inhibitors in the implementation of inter-organisational costing programmes. The broad scope of the paper sets the foundations for more focused research into specific inhibiting factors.

Inhibiting Factors of Inter-organizational Cost Management Complementary Study

“…Traditional practices and management techniques do not often play the role of managing Interorganizational relationships (Bastl et al, 2010). The generation of administrative and financial information should assist managers to make decisions in that scenario (Seal, Berry, & Cullen, 2004;Tomkins, 2001).…”

“…Farias (2016) elected to group the inhibiting factors into seven groups: Corporate Strategy; Integration Between Companies; People; Intra-and Interorganizational Processes; Corporate Training and Education; Conflicts Between Companies; and Lack of Trust Between Companies. Despite the noteworthy, pioneering research emerging in regards to the subject, this study opted to classify the inhibiting factors into three groups distinct from those used by Bastl et al (2010) and Farias (2016).…”

“…This coordination can cause conflicts -common in relationships of this type -, which pose difficulties to obtaining positive results. Bastl et al (2010), aimed to point out the factors that inhibit the implementation of Interorganizational cost management approaches, among other goals. According to the authors, their study was the first to systematically address the inhibiting factors in the implementation of cost management approaches within the Interorganizational scope systematically.…”

“…However, they have little guidance on the potential challenges related to the implementation of approaches to Interorganizational Cost Management (Dekker, 2004;Vosselman & Van Der Meer-Kooistra, 2006;Bastl et al, 2010). Studies that help businesses successfully implement the Interorganizational program costs can generate benefits while increasing their knowledge of business processes (Stapleton, Pati, Beach, & Julmanichoti, 2004).…”

“…Nevertheless, from an empirical point of view, there is a significant number of businesses that fail to participate in cooperative processes, and many networks are unable to consolidate their structures and management models (Sadowski & Duysters, 2008;Pereira, Alves, & Silva, 2010). occur during the implementation process (Hakansson & Snehota, 1995;Park & Ungson, 2001;Bastl, Grubic, Templar, Harrison, & Fan, 2010;.…”