Inter‐organisational costing approaches: the inhibiting factors

Abstract

Purpose - The purpose of this paper is to highlight the limitations of current
\naccounting practices in an inter-organisational context; introduce contemporary
\ncosting approaches used in inter-organisational costing (IOC) programmes; and
\nidentify the inhibitors of successful implementation of IOC programmes. Design/
\nmethodology/approach - The paper uses a structured review of empirical and
\ntheoretical literature. Findings - Traditional accounting practices do not
\nadequately fulfil their role in the inter-organisational context. Contemporary
\naccounting practices overcome only some limitations of traditional accounting
\npractices. The paper uncovers part of the complexity surrounding the
\nimplementation of IOC programmes and suggests that we are dealing with a broad
\ninter-disciplinary phenomenon. Research limitations/implications - Conclusions
\nare drawn on a conceptual level and further empirical investigation is
\nencouraged. Practical implications - The paper raises the awareness of the
\ncomplexity surrounding the implementation of IOC programmes. The broad set of
\ninhibiting factors could be effectively used by managers to assess the readiness
\nof organisations involved in implementation of IOC programmes. Originality/value
\n- This research is the first that systematically addresses the problem of
\ninhibitors in the implementation of IOC programmes. The broad scope of the paper
\nsets the foundations for more focused research into specific inhibiting factors.