Inter-firm cost management in high-tech product development projects in the plastics processing industry

Abstract

Companies are compelled to develop new products that accomplish several objectives simultaneously. Furthermore, competition is forcing organizations to collaborate more with their business partners. To meet this wide set of objectives, companies are embracing new tools and techniques to support successful new product development (NPD) projects. Inter-organizational cost management (IOCM) has been used by organizations to achieve the collaborative management of costs throughout projects of NPD. Effective cost management which cross organizational boundaries has the potential to improve the overall performance of the project. This paper presents and discusses inter-firm cost management in high-tech NPD projects, particularly the use of nanomaterials and nanotechnologies in the plastics processing industry. Processors are being asked to add value, complete more operations, deliver around the world, develop products and engage in partnerships with customers. In many cases, the supplier is becoming so integrated with the client that the former (supplier) is becoming linked to the success of the client. One result of this new strategic focus could be the “evolution” of IOCM.