Inter-organizational cost management: effects of antecedents and methods in a hybrid relational context

Purpose - The antecedents and cost management methods and their effects on the value creation of inter-organization are essential topics of inter-organizational cost management (IOCM) in a hybrid relational perspective. This study aims to develop a synthesis coordinating mechanism theory which combines supply network theory and transaction cost economics. Using this modified theory, a structural model of IOCM and its hypotheses are developed by considering the organic connection among hybrid relational context, capabilities, methods and the effects of IOCM. Design/methodology/approach - The data were collected under convenient sampling using the questionnaire survey method and analyzed using principal component analysis and structural equation modeling. Findings - The results (significant at p < 0.01 and p < 0.05 level) show that there is a positive correlation among the hybrid relational context, capabilities (antecedents), methods and the effects of IOCM. Capabilities (antecedents) and cost management methods are also found to have a positive impact on synergic effect value and on improving collaborative efficiency in IOCM. Practical implications - The managers of inter-firm networks may use the results of this study to ensure competitive advantages through collaboration with each other and building and retaining a long-term relationship. Originality/value - This study demonstrates that the coordinating mechanism of IOCM can create the synergic effect value and improve the collaborative efficiency of the inter-organization relationship.