Internal and Interorganizational Cost Management and Organizational Performance: Effect of Information Sharing

Abstract

This investigation aimed to analyze the effect of internal and interorganizational cost management on organizational performance, focusing on understanding the central role of information sharing. To this end, an inferential study was conducted through a survey involving 99 managers and cost coordinators from Brazilian companies. The estimation of variables was performed using a quantitative approach, employing the structural equation modeling method with SmartPLS 4 software. The findings of this investigation demonstrate that companies with internal cost management measures improve their internal processes, thereby generating greater efficiency in the conversion of resources into goods and/or services. When companies apply their internal cost management techniques to their partner companies, firms within the value chain tend to exhibit more efficient interorganizational cost management. Consequently, the need to improve cost management processes leads companies to share their information, resulting in an exchange of information that allows companies to identify market opportunities. Similarly, the sharing of information among companies helps resolve issues, thereby enabling the company to achieve higher organizational performance. This investigation provides insights into information sharing, allowing managers and coordinators to discuss the best market techniques and strategies, thus contributing to the enhancement of company performance.