Abstract
This study reports on an action research project carried out in two non-Japanese, U.K. manufacturing companies that were considering the establishment of a strategic supply partnership. In the assembler company, materials constituted 80% of manufacturing costs with the result that managing supply chain costs has become a most critical element in overall cost control. The company was seeking closer ties involving information sharing and R&D collaboration with suppliers of strategic components. On its part, the supplier wished to move towards the level of co-operation and trust that the two companies had realized in their U.S. operations. The participation of the researchers as neutral intermediaries between the two companies gave them an opportunity to analyse the role of management accounting in the construction of a strategic partnership. The constitutional role of accounting is highlighted together with the need to develop costing and performance measurement technologies that can be understood and respected by both senior managers and non-accountants involved in the procurement process.
| Original language | English |
|---|---|
| Pages (from-to) | 303-322 |
| Number of pages | 20 |
| Journal | Management Accounting Research |
| Volume | 10 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1999 |
Bibliographical note
Funding Information:Acknowledgements: This study is part of a wider project on management accounting in supply chains supported by CIMA for whose financial help we are very grateful. We would also like to thank Sue Johnston, Michael Holmes, James Marson, the managers at our case study sites and two anonymous referees.
Keywords
- Supply change management; strategic partnership; open book accounting; management accounting
ASJC Scopus subject areas
- Accounting
- Finance
- Information Systems and Management
