The Research On Inter-organizational Cost Management

Cost is key factor to influence the competitiveness of an entity. As the speedydevelopment of economy globalization and informatization, the entity is now facingdramatic changes in operation environment and management module. It becomes more andmore limited by using traditional cost management to realize cost reducing. In thecompetitive environment, the entity put more focus on the external environment itself, therelationships among the manufacturing and suppliers, agencies, retails and customersbecome more inseparable. The strategic partnerships among them commence to be readilyestablished. Such management theories and organizations start to emerge, globalmanufacture, virtual entity, horizontal cooperation and multinational enterprises. It becomesa trend to operate entities nationally and globally. Such theories and trends show that thekey factors are not within the entities but among them, IOCM is the main mean to reducecost in the future.Under such background, IOCM shows its advantages as a new management theory andis being paid more and more attention by researchers and entities. However, as a newlycombination research area, the research dimension of IOCM is relatively scatter. Thus, someviews have not reached into a agreement, and for now, the research mainly have followingdisadvantages:(1)how to choose and use IOCM tools;(2)how to establish the safeguardmechanism to proceed IOCM.Therefore, the paper aim to give solutions to above questions, it will apply thecombination of normative research and empirical research as main way to inquiry IOCM,and the main views and contents are as followed:First of all, it recalls the recent research situation of IOCM both at home and abroad,stating the correlation theory of IOCM. Then, it discusses how to choose and use tools forIOCM, the choice needs to take the integration of environment, organization cultures andmanagement tools into consideration. In addition, IOCM needs to apply different ways indifferent time, phases and organizations. After that, we will discuss how to establish thesafeguard mechanism to proceed IOCM. The paper will analysis the factors which influencethe proceeding of IOCM. Using empirical inquiry to research the safeguard mechanism, itfinds out that the trust of organization members to proceed IOCM is critical. Finally, basedon the summary above, we will indicate the disadvantages of the paper and forward suggestion for future research.