Image of Complementary Effects of Stretch Target Costs and Concurrent Processes on Cost Reduction: a Dynamic Tension Perspective

Complementary Effects of Stretch Target Costs and Concurrent Processes on Cost Reduction: a Dynamic Tension Perspective

Recent empirical evidence has not supported anecdotal evidence of the effectiveness of joint use of stretch target costs and concurrent processes. The goal of this research is to examine the joint effects of stretch target costs and concurrent processes on cost reduction. Specifically, this study builds on the dynamic tension perspective to explain how and why joint use of stretch target costs and concurrent processes are associated with superior performance. Applying this perspective, we assume that their joint use is accompanied by dynamic tensions that drive creative generation of cost reduction ideas. Nevertheless, we find no statistically meaningful relationship using multiple regression analysis for a sample of large Japanese manufacturing firms. However, supplementary analysis shows that the joint effects enhance cost reduction for firms in process industries but not those in assembly industries. Moreover, ad hoc analysis shows that concurrent processes enhance cost reduction when target costs are set at stretch levels. These results reflect the characteristics of Japanese process industries that manufacture products of high quality and technology while achieving low cost. This study extends previous research by building on the dynamic tension perspective to explain how and why the joint use of stretch target costs and concurrent processes enhances cost reduction. Moreover, it extends the existing literature by suggesting target cost management is effective in process industries.

Ketersediaan
Call NumberLocationAvailable
PSB lt.2 - Karya Akhir (Majalah)1
Informasi Detail
Judul Seri
Keio Business Review
No. Panggil
-
Penerbit
Tokyo : Keio University.,
Deskripsi Fisik
59 p.
Bahasa
English
ISBN/ISSN
0453-4557
Klasifikasi
NONE
Tipe Isi
text
Tipe Media
-
Tipe Pembawa
-
Edisi
No. 54, 2020
Subjek
Cost reduction
Target Costs
Dynamic Tension Perspective
Concurrent Processes
Info Detail Spesifik
Keio Business Review
Pernyataan Tanggungjawab
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Tidak tersedia versi lain

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