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Management control tools within purchaser-supplier relationships

Espert, Mia LU and Vovk, Maryna LU (2012) BUSN68 20121
Department of Business Administration
Abstract
Title: Management control tools within purchaser-supplier relationships

Keywords: Management control, value chain, strategy, purchaser, supplier

Aim: The aim of this master thesis is to describe and analyze what management control tools are used within the setting of purchaser-supplier relationships, how these tools are used and what their interdependencies are.

Methodology: The methodology undertaken is based on the qualitative approach using the case study design. The two case companies are AB InBev and Carlsberg Group, both operating in the beer industry. The empirical findings, mainly conducted by interviews, are compared to and analyzed together with the theoretical framework focusing on the inter-organizational management... (More)
Title: Management control tools within purchaser-supplier relationships

Keywords: Management control, value chain, strategy, purchaser, supplier

Aim: The aim of this master thesis is to describe and analyze what management control tools are used within the setting of purchaser-supplier relationships, how these tools are used and what their interdependencies are.

Methodology: The methodology undertaken is based on the qualitative approach using the case study design. The two case companies are AB InBev and Carlsberg Group, both operating in the beer industry. The empirical findings, mainly conducted by interviews, are compared to and analyzed together with the theoretical framework focusing on the inter-organizational management accounting (IOMA) in purchaser-supplier relationships.

Theoretical framework: Presented theoretical framework has a focus on the IOMA tools used to manage purchaser-supplier relationships. However, in order to understand specific control mixes including particular control tools, also overall theories about inter-organizational relationships (IOR) and the strategic management accounting (SMA) is presented.

Empirical study: The empirical findings from case companies AB InBev and Carlsberg Group shows that they rely on both formal and informal control tools in their purchaser-supplier relationships. However, AB InBev focuses more on the formal control tools whereas Carlsberg Group is a more frequent user of different tools and also has more sympathetic relationships with its suppliers than AB InBev.

Analysis: Analyzing findings from theoretical framework and empirical studies it can be identified that specific characteristic for IOR and furthermore SMA affects the choice of IOMA and appropriate control mixes. From the case companies it is found that AB InBev and Carlsberg Group both rely heavily on behavior control as the main tool managing suppliers and that trust as a control tool functions both as a complement and a substitute for formal control tools.

Results: Presented results suggest that IOR and SMA should be taken into consideration when creating appropriate control mixes. The mix should include outcome, behavior and social control tools. However, emphasis on behavior controls is identified of special importance when managing successful purchaser-supplier relationships. (Less)
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author
Espert, Mia LU and Vovk, Maryna LU
supervisor
organization
course
BUSN68 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
strategy, management control, value chain, purchaser, supplier
language
English
id
2544281
date added to LUP
2012-06-20 10:32:06
date last changed
2012-06-20 10:32:06
@misc{2544281,
  abstract     = {Title: Management control tools within purchaser-supplier relationships

Keywords: Management control, value chain, strategy, purchaser, supplier

Aim: The aim of this master thesis is to describe and analyze what management control tools are used within the setting of purchaser-supplier relationships, how these tools are used and what their interdependencies are.

Methodology: The methodology undertaken is based on the qualitative approach using the case study design. The two case companies are AB InBev and Carlsberg Group, both operating in the beer industry. The empirical findings, mainly conducted by interviews, are compared to and analyzed together with the theoretical framework focusing on the inter-organizational management accounting (IOMA) in purchaser-supplier relationships.

Theoretical framework: Presented theoretical framework has a focus on the IOMA tools used to manage purchaser-supplier relationships. However, in order to understand specific control mixes including particular control tools, also overall theories about inter-organizational relationships (IOR) and the strategic management accounting (SMA) is presented.

Empirical study: The empirical findings from case companies AB InBev and Carlsberg Group shows that they rely on both formal and informal control tools in their purchaser-supplier relationships. However, AB InBev focuses more on the formal control tools whereas Carlsberg Group is a more frequent user of different tools and also has more sympathetic relationships with its suppliers than AB InBev.

Analysis: Analyzing findings from theoretical framework and empirical studies it can be identified that specific characteristic for IOR and furthermore SMA affects the choice of IOMA and appropriate control mixes. From the case companies it is found that AB InBev and Carlsberg Group both rely heavily on behavior control as the main tool managing suppliers and that trust as a control tool functions both as a complement and a substitute for formal control tools.

Results: Presented results suggest that IOR and SMA should be taken into consideration when creating appropriate control mixes. The mix should include outcome, behavior and social control tools. However, emphasis on behavior controls is identified of special importance when managing successful purchaser-supplier relationships.},
  author       = {Espert, Mia and Vovk, Maryna},
  keyword      = {strategy,management control,value chain,purchaser,supplier},
  language     = {eng},
  note         = {Student Paper},
  title        = {Management control tools within purchaser-supplier relationships},
  year         = {2012},
}