TY - JOUR
T1 - Implementation of interorganizational cost management and its infrastructure
T2 - the case of a Korean ‘Chaebol’ firm
AU - Sohn, Sung Kyu
AU - Shin, Il Hang
AU - Park, Sorah
N1 - Publisher Copyright:
© 2014 Taylor & Francis.
PY - 2015/4/3
Y1 - 2015/4/3
N2 - In this paper, purchasing innovation in the case of a distribution company is analysed from an interorganizational cost management (IOCM) perspective. In this company, purchasing costs play an important strategic role. This study suggests that a new practice of IOCM is necessary that is suitable for Korea's economic circumstances, including the family-controlled conglomerates (Chaebols) that dominate the entire economic system. The strong need to reduce purchasing costs within Chaebols and the Korean government policy that promotes joint growth of large and small firms are crucial factors in the successful implementation of IOCM practices. We also discuss the infrastructure that enables effective IOCM in the long term, thereby adding new findings to academic research in the area, and practical implications of this benchmark case for other companies planning purchasing innovations.
AB - In this paper, purchasing innovation in the case of a distribution company is analysed from an interorganizational cost management (IOCM) perspective. In this company, purchasing costs play an important strategic role. This study suggests that a new practice of IOCM is necessary that is suitable for Korea's economic circumstances, including the family-controlled conglomerates (Chaebols) that dominate the entire economic system. The strong need to reduce purchasing costs within Chaebols and the Korean government policy that promotes joint growth of large and small firms are crucial factors in the successful implementation of IOCM practices. We also discuss the infrastructure that enables effective IOCM in the long term, thereby adding new findings to academic research in the area, and practical implications of this benchmark case for other companies planning purchasing innovations.
KW - Chaebol
KW - South Korea
KW - interorganizational cost management
KW - purchasing innovation
UR - http://www.scopus.com/inward/record.url?scp=84921352162&partnerID=8YFLogxK
U2 - 10.1080/13602381.2014.928105
DO - 10.1080/13602381.2014.928105
M3 - Article
AN - SCOPUS:84921352162
VL - 21
SP - 228
EP - 250
JO - Asia Pacific Business Review
JF - Asia Pacific Business Review
SN - 1360-2381
IS - 2
ER -