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

Abstract

Purpose

The antecedents and cost management methods and their effects on the value creation of inter-organization are essential topics of inter-organizational cost management (IOCM) in a hybrid relational perspective. This study aims to develop a synthesis coordinating mechanism theory which combines supply network theory and transaction cost economics. Using this modified theory, a structural model of IOCM and its hypotheses are developed by considering the organic connection among hybrid relational context, capabilities, methods and the effects of IOCM.

Design/methodology/approach

The data were collected under convenient sampling using the questionnaire survey method and analyzed using principal component analysis and structural equation modeling.

Findings

The results (significant at p < 0.01 and p < 0.05 level) show that there is a positive correlation among the hybrid relational context, capabilities (antecedents), methods and the effects of IOCM. Capabilities (antecedents) and cost management methods are also found to have a positive impact on synergic effect value and on improving collaborative efficiency in IOCM.

Practical implications

The managers of inter-firm networks may use the results of this study to ensure competitive advantages through collaboration with each other and building and retaining a long-term relationship.

Originality/value

This study demonstrates that the coordinating mechanism of IOCM can create the synergic effect value and improve the collaborative efficiency of the inter-organization relationship.

Citation

Uddin, M.B., Fu, Y. and Akhter, B. (2020), "Inter-organizational cost management: effects of antecedents and methods in a hybrid relational context", Journal of Business & Industrial Marketing, Vol. 35 No. 5, pp. 909-923. https://doi.org/10.1108/JBIM-07-2019-0348