Management Accounting Research 13 (2003) 1–23
Value string analysis in interfirm relationships: a field analyze Henri C. Dekker∗
Amsterdam Research Center in Accounting (ARCA), Vrije Universiteit Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands
Received 20 March 2001; acknowledged 4 January 2002
Interfirm human relationships introduce new challenges intended for management accounting. One such obstacle is the supply of information to get the dexterity and marketing of activities across companies in a benefit chain. Based on the literature, a worth chain evaluation (VCA) is a useful tool in order to meet this obstacle. However , small empirical proof has been printed on the utilization of this evaluation in practice. This paper presents a case study on the make use of an activity-based costing (ABC) model by a large UK retail firm and a team of suppliers for supporting their supply sequence management (SCM) practices. This cost style was based upon the principles valuable chain evaluation and included cost information across the source chain. It was used to boost supply cycle operations by performing benchmark analyses, ideal what-if examines and expense monitoring. An interpretation of the watch case findings is usually provided using organizational theory and purchase cost economics.
© the year 2003 Elsevier Technology Ltd. Most rights arranged.
Keywords: Interfirm relationships; Control; Value sequence analysis; Case study
1 . Launch
Interfirm human relationships and networks are an indispensable part of business relationships, yet in the past they may have gained very little attention for the agenda of management accounting researchers. Just recently more attention toward this issue has been called for inside the accounting materials (Hopwood, mil novecentos e noventa e seis; Munday, 1992; Otley, 1994; Scapens and Bromwich, 2001). Due to the acknowledgement of the implications for organizational design and management control within and between organizations, the topic currently is attracting increasing exploration interest. Specific issues resolved by the accounting literature are definitely the make-or-buy decision and freelancing of actions (Anderson ou al., 2150; Gietzman, mil novecentos e noventa e seis; Mouritsen ainsi que al., 2001; Van jeder Meer-Kooistra and Vosselman, 2000; Widener and Selto, 1999), inter-organizational cost management (Carr and Ng, 1995; Cooper and Slagmulder, 1999), supply chain interactions (Frances ∗
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H. C. Dekker / Supervision Accounting Analysis 14 (2003) 1–23
and Garnsey, mil novecentos e noventa e seis; Ittner ainsi que al., 99; Seal ainsi que al., 1999), alliances and business sites (Dekker, 2003; Tomkins, 2001) and benefit chain examination (VCA) (Shank, 1989; Shank and Govindarajan, 1992, 1993).
This paper focuses on the use of value chain analysis in buyer–supplier relationships for choosing supply sequence interdependence. Inside the management accounting literature the VCA is certainly a core analytical tool of proper management accounting (SMA). This method to analyze the worthiness chain to get strategic improvement was released by Avoir (1985) and in the supervision accounting literary works further developed by Shank (1989) and Shank and Govindarajan (1992, 1993). The core idea of the analysis is to break up " the string of activities that works from basic raw materials to end-use customers into logically relevant sections in order to understand the behavior of costs and the sources of differentiation” (Shank and Govindarajan, 1992, p. 180). The development of VCA in the books, however , features primarily recently been conceptual and anecdotal, and mainly by an intrafirm perspective. Tiny empirical evidence of its utilization in practice exists, which has been reasons for critique on the relevance of the concept for practice (Lord, 1996). In addition , even though a VCA conceptually spans the entire worth chain,...
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