Measuring Inter-organizational Cost Management and Open Book Accounting

Bakil DhaifAllah, Sofiah Md Auzair, Ruhanita Maelah, Md Daud Ismail

Abstract


ABSTRACT

This paper reports the findings of a study aimed at developing valid measurement for inter-organizational cost management (IOCM) and open book accounting (OBA) constructs. The conceptualization of these measures were based on the prior literature in the context of supplier firms of Malaysian manufacturing sector. Using Structural Equation Modelling (SEM), measurement models of the constructs were tested and the scales were validated. The results indicated a satisfying model with acceptable reliability and validity. The findings of this study provide instruments that could be utilized as tools to assess the adoption of IOCM and OBA practices in buyer-supplier relationships. This paper extends the understanding on the concepts of IOCM and OBA practices through the introduction of a comprehensive scale covering wide dimensions of IOCM and OBA.

Keywords: Inter-organizational cost management; open book accounting; new scales; buyer-supplier relationships.

ABSTRAK

Makalah ini melaporkan hasil kajian yang bertujuan membangunkan pengukuran yang sah untuk Pengurusan kos antara organisasi (IOCM) dan Perakaunan ‘open-book’ (OBA). Konsep bagi ukuran berkenaan adalah berdasarkan kajian lepas dalam konteks firma pembekal sektor perkilangan di Malaysia. Model pengukuran konstruk telah diuji dan skala telah disahkan menggunakan Pemodelan Persamaan Berstruktur (SEM). Hasil kajian menunjukkan model yang dibangunkan adalah memuaskan dengan tahap kebolehpercayaan dan kesahan yang boleh diterima. Dapatan kajian ini menyediakan instrumen yang boleh digunakan sebagai alat untuk menilai penggunaan amalan IOCM dan OBA dalam hubungan pembeli-pembekal. Kajian ini memperpanjangkan kefahaman tentang konsep IOCM dan OBA melalui skala komprehensif yang diperkenalkan yang meliputi dimensi IOCM dan OBA yang luas.

Kata kunci: Pengurusan kos antara organisasi; perakaunan ‘open-book’; ukuran baru; hubungan pembeli-pembekal.

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