Incentives for cost transparency implementation

A framework from an action research

Pietro Romano, Marco Formentini

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

The aim of this research is to develop a framework to support cost transparency implementation. Though cost transparency is a well-known practice in supply chain management literature, there is a lack of guidelines supporting managers to effectively implement it. The study has been developed using empirical findings from an action research, the authors conducted in close collaboration with an Italian manufacturer of modular kitchens and 19 suppliers. This research discusses a methodology to support (1) the selection of those customer-supplier relationships worth being developed into cost transparency, and (2) the identification, for each of these relationships, of appropriate forms of actions/incentives to stimulate suppliers to share cost information. The key outcome lies in the theoretical framework emerging from on-field empirical evidences supporting managers in cost transparency implementation. The proposed model fills some gaps found in supply chain literature and explicitly addresses an unusual variable to be considered in the suppliers' selection phase: the buyer's interest. From a managerial point of view our model provides a framework buying companies use to select and classify the subset of suppliers willing and worth being engaged in cost transparency initiatives, and to identify appropriate actions to implement cost transparency. The findings of a single action research cannot be generalized to the overall population of manufacturing entities. Large sample data collection efforts will be needed to test the proposed findings and make our prescriptions more robust. Additionally, the proposed model could be tested in other industries outside the modular kitchen industry.

Original languageEnglish
Title of host publicationBehavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies
Subtitle of host publicationNew Trends in Design, Management, and Methodologies
EditorsIlaria Giannoccaro
Place of PublicationLondon
PublisherSpringer
Pages159-177
Number of pages19
ISBN (Electronic)978-1-4471-4878-4
ISBN (Print)978-1-4471-4877-7
DOIs
Publication statusPublished - 1 Nov 2013

Fingerprint

Transparency
Incentives
Costs
Suppliers
Managers
Industry
Supplier selection
Supply chain
Buyers
Customer-supplier relationships
Theoretical framework
Information costs
Empirical evidence
Data collection
Prescription
Methodology
Manufacturing
Supply chain management

Cite this

Romano, P., & Formentini, M. (2013). Incentives for cost transparency implementation: A framework from an action research. In I. Giannoccaro (Ed.), Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies: New Trends in Design, Management, and Methodologies (pp. 159-177). London: Springer. https://doi.org/10.1007/978-1-4471-4878-4_8

Incentives for cost transparency implementation : A framework from an action research. / Romano, Pietro; Formentini, Marco.

Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies: New Trends in Design, Management, and Methodologies. ed. / Ilaria Giannoccaro. London : Springer, 2013. p. 159-177.

Research output: Chapter in Book/Report/Conference proceedingChapter

Romano, P & Formentini, M 2013, Incentives for cost transparency implementation: A framework from an action research. in I Giannoccaro (ed.), Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies: New Trends in Design, Management, and Methodologies. Springer, London, pp. 159-177. https://doi.org/10.1007/978-1-4471-4878-4_8
Romano P, Formentini M. Incentives for cost transparency implementation: A framework from an action research. In Giannoccaro I, editor, Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies: New Trends in Design, Management, and Methodologies. London: Springer. 2013. p. 159-177 https://doi.org/10.1007/978-1-4471-4878-4_8
Romano, Pietro ; Formentini, Marco. / Incentives for cost transparency implementation : A framework from an action research. Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies: New Trends in Design, Management, and Methodologies. editor / Ilaria Giannoccaro. London : Springer, 2013. pp. 159-177
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