Antecedents of internal and interorganizational cost management and its effects on organizational performance

Resumen

Objective: To assess the antecedents of internal and interorganizational cost management and their effects on organizational performance. The antecedents considered include internal electronic integration, external electronic integration, and higher-quality information.

Originality/value: This investigation advances the literature by demonstrating that when companies extend their electronic integration to partner companies, external electronic integration improves, enabling access to higher-quality information. This study contributes a new perspective to the literature by showing that integrated systems allow companies to achieve internal controls that enable more effective internal and interorganizational cost management. However, external electronic integration alone was not sufficient to enhance interorganizational cost management.

Methodology: To measure the data in this research, the structural equation modeling technique was used with the SmartPLS 4 software. The sample comprised 107 cost managers or coordinators from Brazilian companies.

Findings: The findings of this research demonstrate that internal electronic integration allows companies to achieve more effective external electronic integration. Internal and external electronic integration, as well as access to high-quality information, positively impact internal and interorganizational cost management control. Furthermore, internal and interorganizational cost management, coupled with access to high-quality information, enables companies managing costs jointly to achieve better organizational performance. However, external electronic integration alone was not sufficient to improve interorganizational cost management.