liu.seSearch for publications in DiVA
Change search
ReferencesLink to record
Permanent link

Direct link
Open Book Accounting with Fixed Returns in an Outsourcing Implementation
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, The Institute of Technology.
2015 (English)Manuscript (preprint) (Other academic)
Abstract [en]

Purpose – The purpose of this paper is to explore open book accounting with fixed returns in the context of an outsourcing implementation. We look to identify circumstances in which open book accounting with fixed returns takes place, how failures can be avoided and what kinds of benefits can be achieved by the accounting method.

Design/methodology/approach – This paper is based on a case study involving a builders’ merchant in a wood manufacturer in the UK. The builders’ merchant has recently outsourced part of its production to the wood manufacturer, using open book accounting with fixed returns. Interviews have been conducted with multiple people from both parties in the agreement.

Findings – It was found that open book accounting with fixed returns can exist despite low initial competence trust, and that only one party has to see a benefit of using open book accounting. Failures in the implementation of open book accounting may be avoided by promoting understanding of the agreement among the people involved, and by making thorough calculations of the supplier’s costs. The benefits of open book accounting with fixed returns identified in this paper are cost savings, closer cooperation and interorganizational learning, lock-in effects, and decreased supplier risk.

Originality/Value – This paper provides the first study of open book accounting where the parties have agreed to fix the returns of the supplier and where the agreement was made as a result of an outsourcing decision. It adds to the developing literature on open book accounting, in particular, and on interorganizational cost management, in general.

Place, publisher, year, edition, pages
2015.
Keyword [en]
Open book accounting, outsourcing, inter-organizational cost management
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-121509OAI: oai:DiVA.org:liu-121509DiVA: diva2:856019
Available from: 2015-09-23 Created: 2015-09-23 Last updated: 2015-09-23Bibliographically approved
In thesis
1. Supplier Integration in Category Management: A case study of the situational impact on relationship performance and interdependence
Open this publication in new window or tab >>Supplier Integration in Category Management: A case study of the situational impact on relationship performance and interdependence
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Supplier integration in category management means that a supplier takes part in the activities that are traditionally performed by retailers. These activities are the selection of which products to sell, decisions on how to price and market the products, and making sure that the products are delivered to the stores in a timely manner. Depending on the situation, an integration of suppliers in these activities can be more or less suitable.

As more research is needed to understand when supplier integration in category management is suitable, the purpose of this thesis is to describe and analyze how situational factors affect the relationship consequences of supplier integration in category management. Specifically, the relationship consequences are expressed in terms of relationship performance and interdependence between the firms.

The study builds on empirical data about British and Swedish builders’ merchants and their suppliers, with a particular focus on timber suppliers. Data has mainly been collected through participative observations and interviews.

Five situational factors that improve the relationship performance of supplier integration in category management are identified: large retailer firms, supplier product knowledge, homogeneity of market demands for the supplier’s products, mutual trust and a shared view on customer value between the supplier and retailer. Three situational factors are identified that affect the interdependence between the retailer and the supplier when supplier integration in category management is implemented: supplier product knowledge, whether the supplier or the retailer initiates the integration and whether coercive or non-coercive power has to be used in the implementation.

This thesis contributes to retail literature by highlighting the need to include situational factors in the analysis of supplier integration, clarifying which activities are comprised by category management and suggesting a theoretical foundation based on the resource-based view and the transaction cost framework to analyse relationship performance in retailer-supplier dyads. When making decisions on integration, managers of retailers and their suppliers are advised to consider the fit with their overall strategy, the fit with the surrounding situation and the effects both in terms of interdependence and relationship performance.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2015. 118 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1705
Keyword
Supplier integration, category management, interorganizational relationships, retail
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-121511 (URN)10.3384/diss.diva-121511 (DOI)978-91-7685-943-8 (print) (ISBN)
Public defence
2015-11-06, A1, A-huset, Campus Valla, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2015-09-23 Created: 2015-09-23 Last updated: 2015-11-19Bibliographically approved

Open Access in DiVA

No full text

Search in DiVA

By author/editor
Ellström, Daniel
By organisation
Industrial EconomicsThe Institute of Technology
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 131 hits
ReferencesLink to record
Permanent link

Direct link