Finnish “state of mind” on inter-organizational integration

IMP Journal ◽  
2018 ◽  
Vol 12 (1) ◽  
pp. 171-191
Author(s):  
Antti Ylä-Kujala ◽  
Salla Marttonen-Arola ◽  
Timo Kärri
Keyword(s):  
Cost Management ◽  
Internal State ◽  
Boundary Spanning ◽  
Management Control ◽  
Large Set ◽  
Organizational Relationships ◽  
Content Type ◽  
Managerial Implications ◽  
Organizational Integration ◽  
The Cost

Purpose The role of management control is frequently emphasized in connection with inter-organizational relationships and value networks. For example, boundary-spanning cost and accounting control techniques have been studied in multifaceted empirical settings. The prevalence of such techniques is, however, currently unknown in conjunction with companies’ interests to increase inter-organizational integration in general. Additionally, also the nexus between the internal state of cost management and the company’s willingness to develop inter-organizational relationships requires further investigation. The paper aims to discuss these issues. Design/methodology/approach The study is based on an extensive survey that was responded to by more than 1,500 CEOs and CFOs from large, medium-sized and small Finnish enterprises in a variety of industries. As the authors chose the mixed-methods approach, both quantitative and qualitative data were collected for the study. Findings The findings suggest that companies can be allocated to five clusters: “the cost experts,” “the trustful,” “the holdouts,” “the trailblazers” and “the uncertain”. When the networking-oriented clusters, “the trustful” and “the trailblazers” are combined, the authors can conclude that 40 percent of the studied companies are interested in increasing inter-organizational integration. However, only 7 percent have boundary-spanning techniques in use. There is also a correlation between interest in integrating and developing cost management. Research limitations/implications This paper contains several theoretical implications, although further research, e.g. comparative studies, is required to verify the findings. The scarcity of managerial implications can be regarded as a limitation. Originality/value This paper fills several untapped research gaps by studying inter-organizational integration in the cost management context from multiple, complementary perspectives with a particularly large set of data.

scholarly journals A centralised cost management system: exploiting EVM and ABC within IPD

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faris Elghaish ◽  
Sepehr Abrishami
Keyword(s):  
Management System ◽  
Risk Sharing ◽  
Management Practices ◽  
Cost Management ◽  
Web Based ◽  
Content Type ◽  
Team Members ◽  
Cost Management System ◽  
The Cost

PurposeIntegrated project delivery (IPD) is highly recommended to be utilised with building information management (BIM), specifically with BIM level-3 implementation process. Extant literature highlights the financial management challenges facing the proposed integration. These challenges are mainly related to the IPD compensation and the conventional cost control approaches that are not consistent with IPD principles. As such, this paper presents an integration of several methods to support automating risk/reward sharing amongst project parties thus enhancing IPD core team members’ relationship.Design/methodology/approachThe literature review was used to highlight the challenges that face the IPD-based cost management practices such as the risk sharing/reward sharing amongst IPD core team members and potential methods to bridge the revealed IPD gap. A framework was developed by integrating the activity-based costing (ABC) – as a method to analyse the cost structure – and earned value management (EVM) to develop mathematical models that can determine the three main IPD financial transactions (i.e. …) fairly. To demonstrate the applicability of the developed system, a real-life case study was used, in which, promising results were collected in regard to visualising the cost control data and understanding of the accumulative status of the project cost and schedule for team members.FindingsA centralised cost management system (CCMS) for IPD is developed to enable the IPD cost structure as well as automating the risk-sharing/reward-sharing calculations. This system is linked with a web-based management system to display the output of proposed risk-sharing/reward-sharing models. Moreover, a novel grid is developed to show the project status graphically and to respect the diversity in core team members backgrounds. In addition, the case study showed that the proposed integration of different methods (ABC, EVM, BIM and web-based management system) is interoperable and applicable.Originality/valueThis research presents a comprehensive solution to the most revealed challenges in cost management practices in IPD implementation. The outcome of this research contributes to the body of knowledge through presenting new extensions of the EVM to be used with the IPD approach to calculate risk/reward. Moreover, the implementation of the proposed tools such as centralised cost management system (CCMS) and CCMS for IPD web system will enhance/foster the implementation of the IPD in conjunction with BIM process.

Forklift truck performance simulation and fuel consumption estimation

2019 ◽  
Vol 18 (3) ◽  
pp. 689-703
Author(s):  
Luigi d'Apolito ◽  
Hanchi Hong
Keyword(s):  
Fuel Consumption ◽  
Experimental Tests ◽  
Computational Time ◽  
Large Set ◽  
Performance Simulation ◽  
Content Type ◽  
Driving Cycles ◽  
The Cost ◽  
Avl Cruise ◽  
Load Handling

Purpose Forklift trucks are generally operated with frequent accelerations and stops, reverse and operations of load handling. This way of operation increases the energy losses and consequently the need for reduction of fuel consumption from forklift customers. This study aims to build a model to replicate the performance of forklifts during real operations and estimate fuel consumption without building a real prototype. Design/methodology/approach AVL Cruise has been used to simulate forklift powertrain and hydraulic circuit. The driving cycles used for this study were in accordance with the standard VDI 2198. Artificial neural networks (ANNs), trained by the results of AVL Cruise simulations, have been used to forecast the fuel consumption for a large set of possible driving cycles. Findings The comparison between simulated and experimental data verified that AVL Cruise model was able to simulate the performance of real forklifts, but the results were only valid for the specified driving cycle. The ANNs, trained by the results of AVL Cruise for a certain number of driving cycles, have been found effective to forecast the fuel consumption of a larger number of driving cycles following the prescriptions of the standard VDI 2198. Originality/value A new method based on ANN, trained by AVL Cruise simulation results, has been introduced to forecast the forklift fuel consumption, reducing the computational time and the cost of experimental tests.

scholarly journals Cost consciousness: conceptual development from a management accounting perspective

2015 ◽  
Vol 12 (1) ◽  
pp. 55-86 ◽  
Author(s):  
Santiago Velasquez ◽  
Petri Suomala ◽  
Marko Järvenpää
Keyword(s):  
Control Systems ◽  
Design Methodology ◽  
Conceptual Development ◽  
Management Accounting ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Management Accountants ◽  
The Common ◽  
The Cost

Purpose – This paper aims to take note of the need to better understand cost consciousness from a management accounting perspective and serves as an exploratory study striving to analyze how the notion has been addressed by management accounting scholars. Design/methodology/approach – This paper presents the findings of a thorough literature review identifying the drivers, interpretations, definitions and results which management accounting scholars have associated with cost consciousness. Findings – This paper has synthesized the definitions and interpretations by considering their conceptual broadness and the subjects that cost consciousness characterizes. In addition, various potential drivers of cost consciousness have been identified where management control systems play a major role. Also, this paper summarizes both the positive and negative outcomes which scholars seem to expect from an increase of cost consciousness. Research limitations/implications – Given that no prior work has focused on the conceptual development of cost consciousness, it was necessary to infer most of the interpretations, drivers and results which management accounting scholars have associated to the cost consciousness notion. Originality/value – Cost consciousness is a concept that appears in hundreds of peer-reviewed articles on management accounting. However, only a handful of management accounting scholars have defined or evaluated this concept to a certain degree. As a result, what management accountants believe cost consciousness to be, how it is driven and what result may be expected from it, is nowhere to be found in any synthesized manner. The findings of this paper develop the concept of cost consciousness by illuminating the common use of the construct across various disciplines.

Innovation capabilities and the organization of the firm: evidence from Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathália Amarante Pufal ◽  
Paulo Antônio Zawislak
Keyword(s):  
Capabilities Approach ◽  
Manufacturing Firms ◽  
Added Value ◽  
Specific Situation ◽  
Large Set ◽  
Content Type ◽  
Firm Organization ◽  
Level Data ◽  
Different Types ◽  
The Cost

PurposeThe purpose of this paper is to examine different types of organization of the firm considering the innovation capabilities of manufacturing firms.Design/methodology/approachThe authors carried out an innovation survey with Brazilian manufacturing firms. A sample of 1,156 firms was analyzed in this paper. Collected data were analyzed using multivariate data analysis techniques. From an innovation capabilities approach, it was possible to identify different types of organization of the firm.FindingsResults show four different types of organization of the firm: advanced, intermediate and basic stability-oriented and change-oriented. Each type presents a different innovation capabilities arrangement. The successful strategies toward innovation are related to change-oriented organization of the firm and advanced stability-oriented organization of the firm.Research limitations/implicationsThis study contributes to the literature by presenting a different view on the organization of the firm, encompassing the capabilities approach and thus a higher level on the perception of firms' heterogeneity. This study contributes to narrow the literature gap on how firms internally coordinate its different capabilities into a coherent organization to sustain an innovative behavior.Practical implicationsThese straightforward findings can serve as a guideline so that managers can conduct changes within their companies toward more innovation. Managers can reconsider its organization as a way to foment innovation, once it is identified as a key strategy for competitiveness.Social implicationsThis study may help managers understand that focusing on stability-driven capabilities is riskier if change-driven capabilities are not present in an adequate and aligned level of development. The outcome may be the growth of the cost structure greater than the potential return. Conversely, managers should also understand that once change-driven capabilities are in a glance, they need do follow up with stability-driven capabilities. Here, the risk is not having an adequate structure to sustain the upcoming growth, arising from innovation. In short, not only “cost and value” should be taken together, but they must be arranged following the specific situation of the company. Every company should manage costs either to sustain new added value or to allow the addition of new value.Originality/valueThe study is based on a unique dataset that traces a large set of companies, being able to check different types of firm organization and associate it with innovation capabilities. The study relates to an emerging economy, which has not received adequate attention until now, largely because of the lack of micro-level data. The study is based on a robust theoretical model of innovation capabilities, which is being tested through such data. Finally, results elucidate ways to improve innovation performance of firms.

Investing in strategic development

2018 ◽  
Vol 15 (2) ◽  
pp. 206-230 ◽  
Author(s):  
Pasi Aaltola
Keyword(s):  
Business Model ◽  
Qualitative Content Analysis ◽  
Essential Elements ◽  
Management Control ◽  
Future Research ◽  
Technological Innovations ◽  
Strategic Development ◽  
Managerial Work ◽  
Content Type ◽  
Managerial Implications

PurposeThis paper aims to explore management control in the strategic development of business model and managerial innovations. The issue is approached from the perspective of managerial work, aiming to outline what managers consider as essential elements of management control in these often iterative and learning-intensive developmental activities.Design/methodology/approachThe study is based on the views of 20 managers engaged in strategic development and its control in various organisations. The interview data consist of the respondents’ experiences and project cases involving non-technological innovations. Qualitative content analysis is used to identify three key concepts of management control of business model and managerial innovations.FindingsThe findings suggest that with managerial and business model innovation, appropriate management control could be established by aligning the innovation being developed with the strategic story of the organisation, leveraging co-creational projects and experimentation with close customer contact.Research limitations/implicationsThe focus of this qualitative research is on building an initial framework. Future research could expand understanding of managerial work and accounting by examining this study’s outcomes in more practical detail in various contexts.Practical implicationsThe findings of this study lead managers and researchers to consider management control of non-technological innovations as an enabling system supporting successful innovations.Originality/valueThis study adds a unique perspective to the literature by conceptualising and offering managerial implications for management control in the context of strategic development of non-technological innovations.

Inter-sector senior leader transitions: experience and outcomes

2014 ◽  
Vol 27 (1) ◽  
pp. 85-93
Author(s):  
Robert McLeay Thompson ◽  
Christine Flynn
Keyword(s):  
Public Sector ◽  
Small Sample ◽  
Senior Leaders ◽  
Senior Managers ◽  
Organizational Relationships ◽  
Content Type ◽  
The Public ◽  
Senior Leader ◽  
Public Sector Leadership ◽  
The Cost

Purpose – The purpose of this paper is to explore the experience of senior leaders who move into the public sector from other sectors of the economy, a process referred to in this paper as inter-sector senior leader transitions. This is a little researched area of public sector leadership yet has significant implications for fundamental public sector reform. Design/methodology/approach – The paper employs an interview design to elicit senior leaders' stories of their transition into the public sector. Findings – The data suggest that successful senior leader transitions are more likely when a set of conditions is met; the leader transitions into CEO role, rather than levels below CEO, ministers provide inter-sector transition support, senior leaders develop responses to stress, senior leaders reject high formalization, their change processes focus on building capacity, and senior leaders confront dysfunctional organizational relationships directly. Research limitations/implications – The research relies on a relatively small sample. However, access to senior managers at this level can be difficult. Nevertheless, those senior managers who participated were very willing to share their stories. Practical implications – If public sector organizations are to realize the value of successful leaders from other sectors, they need to invest in structured processes that facilitate the transition. A laissez-faire approach is not viable given the cost of such transitions. Originality/value – The paper focuses on a little researched area of leadership experience which has significant implications for the development and change of the public sector.

Project cost control: a new method to plan and control costs in large projects

2016 ◽  
Vol 22 (6) ◽  
pp. 1247-1268 ◽  
Author(s):  
R. Jayaraman
Keyword(s):  
Cost Control ◽  
Cost Management ◽  
Roll Steel ◽  
Content Type ◽  
Steel Sheets ◽  
Time Period ◽  
Salutary Effect ◽  
Long Time ◽  
The Cost ◽  
And Control

Purpose The purpose of this paper is to reengineer the process of cost management in large projects. Design/methodology/approach Considering the fact most large projects overrun their budgets because of the long time period needed to completion, it was decided to reengineer the cost management. Accordingly costs allocated to packages were reviewed and changed on a dynamic basis. Different types of contingencies were provided. Concepts of package contingency and project contingency were introduced. These were based on the project buffer and feeding buffer concepts popularised by Eliyahu Goldratt. Findings The re-engineered method of cost control worked well and yielded better than expected results, leading to the setting up of a new world record in the completion time for setting up a million tonnes per annum continuous, tandem cold rolling mill to roll steel sheets. Research limitations/implications In view of the total success of the reengineered approach, which was tested out on a large project over three years, it is felt that other projects could also try out this technique, especially since it is along the lines proposed by Eliyahu Goldratt who is an authority on project management. However the success can be better understood if the results of the testing become available. To that extent the contents of the present paper have limitations. Practical implications Large projects can deploy the methodology and complete their projects on time and under budget. Social implications The reengineering of the cost management was done primarily with a view to complete projects under budget. Since many governments spend many billions of dollars on publicly funded projects for the welfare of citizens, the use of this technique could have a salutary effect on the cost. Originality/value The method was innovated in the company by the author’s team and deployed in a live project over four years for the first time to achieve world-class results.

Stakeholder competency in evaluating the environmental impacts of infrastructure projects using BIM

2017 ◽  
Vol 24 (5) ◽  
pp. 718-735 ◽  
Author(s):  
Martina Elizabeth Murphy ◽  
Maja-Marija Nahod
Keyword(s):  
Environmental Impacts ◽  
Early Warning ◽  
Cost Management ◽  
Technical Skills ◽  
Management Plan ◽  
Infrastructure Projects ◽  
Content Type ◽  
Early Warning Indicator ◽  
The Cost

Purpose Building information modelling (BIM) literature reveals a growing interest in the development of a competency-based approach to manage the long-term goals of BIM implementation in infrastructure projects. One long-term goal is mitigation of environmental impacts (EIs). It is proposed that by integrating environmental systems within the BIM model, the technology can act as an early warning indicator to assist stakeholders identify and evaluate EIs before they become critical to delivery. The purpose of this paper is to assess the effectiveness of BIM in identifying EIs on infrastructure projects and investigate the correlation between stakeholder competency and evaluation of EIs. Design/methodology/approach In all, 71 informants that have relevant experience in infrastructure projects were investigated using a two-stage methodology comprising a questionnaire to determine the BIM indicators used to identify EIs and the stakeholder competencies required to assess and evaluate EIs and Behavioural Event Interviews (BEIs) to validate the competencies identified. Findings The findings showed that risk assessments are the most critical early warning indicator in identifying EIs specifically when implemented within the cost management process. The key stakeholder competencies required to successfully evaluate EIs were identified as project organisation and building equitable relationships. BEIs showed these stakeholders to also have high levels of behavioural and contextual awareness. This suggests that, contrary to perceived perception, successful management of EIs is more dependent on collaborative working than the acquisition of technical skills. Findings also indicated that Croatian BIM stakeholders are less experienced than UK BIM stakeholders in project implementation and delivery and that less experienced BIM stakeholders require more emphasis on technical knowledge whilst the importance of “soft skills” is more apparent in experienced stakeholders, notably amongst the UK participants. Originality/value The implications for infrastructure projects show that effective management of EIs can be achieved through alignment of the BIM model with the cost management plan implemented by stakeholders working collaboratively. Hence, the strategic focus for AEC companies working on infrastructure projects should be the development of staff interpersonal competencies rather than solely on project goals and/or an over-emphasis on technical skills.

Planning for Reuse. Developing a Strategy for the Northern Territory, Australia

1991 ◽  
Vol 24 (9) ◽  
pp. 31-43 ◽  
Author(s):  
M. D. Burgess
Keyword(s):  
Potable Water ◽  
Cost Management ◽  
Sewage Treatment ◽  
Northern Territory ◽  
Sewage Effluent ◽  
Cost Benefits ◽  
Management Procedures ◽  
Marketing Activities ◽  
Harsh Climate ◽  
The Cost

A harsh climate, extended dry periods and relatively expensive water resources underly the potential for effluent reuse in the Northern Territory, Australia. The cost of supplying potable water and the potential offsetting effects of utilising sewage effluent are reviewed. The need to firmly establish the true cost to the community of different supply options is identified. Major cost benefits accrue where reuse will enable deferment of either significant potable source augmentation or sewage treatment works upgrading and where horticultural prospects are good at a reuse site close to the treatment works. An overall strategy plan for increasing the potential of reuse is described. This plan includes firm cost management procedures, marketing activities, appropriate land planning measures and a commitment to research and development.

The cost-effectiveness of insulin analogs and regular insulin for diabetes control: a case study in Iran

2020 ◽  
Vol 33 (4/5) ◽  
pp. 323-331
Author(s):  
Mohsen pakdaman ◽  
Raheleh akbari ◽  
Hamid reza Dehghan ◽  
Asra Asgharzadeh ◽  
Mahdieh Namayandeh
Keyword(s):  
Cost Effectiveness ◽  
Cost Effective ◽  
Regular Insulin ◽  
Diabetes Control ◽  
Diabetic Patients ◽  
Insulin Analogs ◽  
Content Type ◽  
Patients With Diabetes ◽  
The Government ◽  
The Cost

PurposeFor years, traditional techniques have been used for diabetes treatment. There are two major types of insulin: insulin analogs and regular insulin. Insulin analogs are similar to regular insulin and lead to changes in pharmacokinetic and pharmacodynamic properties. The purpose of the present research was to determine the cost-effectiveness of insulin analogs versus regular insulin for diabetes control in Yazd Diabetes Center in 2017.Design/methodology/approachIn this descriptive–analytical research, the cost-effectiveness index was used to compare insulin analogs and regular insulin (pen/vial) for treatment of diabetes. Data were analyzed in the TreeAge Software and a decision tree was constructed. A 10% discount rate was used for ICER sensitivity analysis. Cost-effectiveness was examined from a provider's perspective.FindingsQALY was calculated to be 0.2 for diabetic patients using insulin analogs and 0.05 for those using regular insulin. The average cost was $3.228 for analog users and $1.826 for regular insulin users. An ICER of $0.093506/QALY was obtained. The present findings suggest that insulin analogs are more cost-effective than regular insulin.Originality/valueThis study was conducted using a cost-effectiveness analysis to evaluate insulin analogs versus regular insulin in controlling diabetes. The results of study are helpful to the government to allocate more resources to apply the cost-effective method of the treatment and to protect patients with diabetes from the high cost of treatment.

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