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Klaus Möller
The effect of relational factors on open-book accounting and inter-organizational cost management in buyer-supplier partnerships
2011-05
,
Möller, Klaus
,
Windolph, M.
,
Isbruch, F.
Open-book accounting (OBA) - the systematic disclosure and discussion of cost data between partner firms - is indispensable for revealing additional cost reduction opportunities that become feasible through the joint efforts of different organizations within supplier-buyer partnerships (inter-organizational cost management). However, evidence from previous case studies indicates that the adoption of OBA and inter-organizational cost management (IOCM) depends on the relational context. This study hypothesizes that the relational factors trust and commitment influence the implementation of OBA and IOCM. The results of a structural equation model used to evaluate data from 147 automotive suppliers partly support this hypothesis. While supplier's commitment promotes cost data disclosure, the buyer's commitment is a key enabler for the inter-organizational cost management.