The antecedents and cost management methods and their effects on the value creation of inter-organization are essential topics of inter-organizational cost management (IOCM) in a hybrid relational perspective. This study aims to develop a synthesis coordinating mechanism theory which combines supply network theory and transaction cost economics. Using this modified theory, a structural model of IOCM and its hypotheses are developed by considering the organic connection among hybrid relational context, capabilities, methods and the effects of IOCM.
The data were collected under convenient sampling using the questionnaire survey method and analyzed using principal component analysis and structural equation modeling.
The results (significant at p < 0.01 and p < 0.05 level) show that there is a positive correlation among the hybrid relational context, capabilities (antecedents), methods and the effects of IOCM. Capabilities (antecedents) and cost management methods are also found to have a positive impact on synergic effect value and on improving collaborative efficiency in IOCM.
The managers of inter-firm networks may use the results of this study to ensure competitive advantages through collaboration with each other and building and retaining a long-term relationship.
This study demonstrates that the coordinating mechanism of IOCM can create the synergic effect value and improve the collaborative efficiency of the inter-organization relationship.
