Inter-organizational cost management: exploring the role of maturity models

Purpose – This paper explores the role and value of maturity models in creating the conditions for effective inter-organizational cost management actions. At present, many contributions have deepened our understanding of the conditions enabling cost management in inter-organizational settings. However, contributions that look into how such enabling conditions can be established appear to be lacking. In other words, there is no theoretical understanding of the process that brings two or more companies into the conditions of effectively collaborating in the frame of an inter-organizational cost management relationship. Design/methodology/approach – The study was enabled and took advantage of a case afforded by a research project that the authors of this paper have been involved in together with two companies that co-funded the project. The case study method is hence used, relying on the methodology of interventionist research and adopting a managerialist approach to research. Findings – A maturity model developed in the field of cost measurement and management may be used as a tool to enable inter-organizational cost management actions. It may favour both the technical alignment required by diverse companies to effectively collaborate and the establishment of the social conditions enabling such collaboration. Originality/value – This paper is the first attempt to link maturity models to inter-organizational cost management. It initiates a process of theory development that links inter-organizational cost management practices and maturity models by focusing on a possible way to establish those that the literature recognises as enabling circumstances of inter-organizational cost management actions. Practical implications – Companies may consider using maturity models to improve their cost management performance at an inter-organizational level.