This paper aims to discuss the role of interorganizational cost management (IOCM) as a control mechanism in the new product development (NPD) process. IOCM extends target costing and kaizen costing to suppliers, turning NPD more effective and efficient.
A two-step research method was used, including the Delphi method and semi-structured interviewing. The data, both quantitative and qualitative, was obtained from a panel of 37 specialists and 7 companies from the automotive components industry.
IOCM is a fundamental control mechanism in NPD, turning the buyer–supplier relationship more effective and extending target and kaizen costing throughout the entire supply chain.
This research was focused on IOCM practices in NPD but both can be approached from different perspectives and conceptual frameworks using additional empirical data which may corroborate or extend our conclusions.
IOCM is important for effective buyer–supplier relationships and this paper presents some of its most important approaches and tools, according to the literature and practical experience of the companies.
Effective NPD processes and buyer–supplier relationships are fundamental for sustainable supply chains from a triple bottom-line perspective, that is, economic, environmental and social.
This research contributes to shedding light on cost management in NPD in general and IOCM, in particular, which asks for both rich and adequate empirical evidence and theoretical conceptualization.
