Shannon Anderson - Academia.edu (original) (raw)

Papers by Shannon Anderson

Research paper thumbnail of Factors Influencing the Performance of ABC Teams

Springer eBooks, 2001

In the previous chapter we discussed the process by which ABC teams were formed and described tea... more In the previous chapter we discussed the process by which ABC teams were formed and described team characteristics. In this chapter, we probe more deeply into a key element of the team process and consider team functioning and team composition against a backdrop of extensive research on the effective use of teams in organizations.1

Research paper thumbnail of Dasar-dasar Akuntansi Biaya : Edisi 4 Buku 1

xxiv, 574 hlm.; 28 x 21 c

Research paper thumbnail of Accounting in Networks: The Transaction Cost Economics Perspective

Research paper thumbnail of Implementing Management Innovations

Research paper thumbnail of Risk Management in Strategic Alliances: Field Evidence

Social Science Research Network, 2009

We examine the portfolio of management controls used to mitigate alliance risk at three separate ... more We examine the portfolio of management controls used to mitigate alliance risk at three separate firms in order to analyze the suitability of management control frameworks proposed by Simons (1995), Merchant and Van der Stede (2007), and Jensen and Meckling (1992) as descriptors of controls used in interfirm alliances. We find that, for the most part, these frameworks generalize to fit the data on how firms manage risks of strategic alliances. However, in applying these frameworks successively to the same data, we find that the researcher's theoretical lens imparts a distinctive understanding of the function of alliance management controls in relation to alliance risk. Specifically, we conclude that alliances that have value-creation at their root engender management controls that are well described by the management control frameworks of Simons (1995) and Merchant and Van der Stede (2007). These frameworks comprehend both economic and behavioral aspects of interfirm exchange and place much weight on coordination and communication between alliance partners. The management controls employed in alliances focused on transaction efficiency and cost minimization are described equally well by the framework of Jensen and Meckling (1992), which relies heavily on economic theory.

Research paper thumbnail of Evidence on the Cost Hierarchy: The Association between Resource Consumption and Production Activities

Journal of Management Accounting Research, Sep 1, 2012

Modern cost accounting posits that manufacturing overhead costs vary with production unit volume,... more Modern cost accounting posits that manufacturing overhead costs vary with production unit volume, batches of production, and with the variety of products produced. However, many studies fail to find an association between manufacturing overhead costs and activities associated with production batches and product variety; rather, the traditional fixed and (unit) variable cost structure is validated. One explanation is that flexible manufacturing methods and optimized production scheduling restore the relevance of the traditional cost model. Another explanation is that the relation holds, but is not detectable because of limitations of the data used in these studies. We explore the separate and joint impacts of these data limitations using data from a modern float glass manufacturing plant and a new time-driven activity-based costing model suggested by Kaplan and Anderson (2004, 2007). We find that: (1) batch and product-variety-related activities are significantly associated with resource consumption, (2) crude measures of activity promote incorrect conclusions about the strength of the relation between activities and resource consumption, and (3) monthly aggregation of data obscures important aspects of the relation between daily production activities and resource consumption. In sum, even in a highly automated setting that is biased against finding evidence of the cost hierarchy because production scheduling is optimized to minimize batch and product-variety-related resource consumption, the cost hierarchy is an apt description of the association between resource consumption and production activity. However, improved measurement and cost model specification are necessary to reveal this association.

Research paper thumbnail of An Empirical Examination of Goals and Performance-to-Goal Following the Introduction of an Incentive Bonus Plan with Participative Goal-setting

Social Science Research Network, 2010

Prior research documents performance improvements following the implementation of pay-forperforma... more Prior research documents performance improvements following the implementation of pay-forperformance (PFP) bonus plans. However, bonus plans typically pay for performance relative to a goal and the manager whose performance is to be evaluated often participates in setting goals. In these settings PFP affects managers' incentive to influence goal levels in addition to affecting performance effort. Prior field research is silent on the effect of PFP on goals, the focus of this paper. Using sales and sales goal data from 61 stores of a U.S. retail firm over 10 quarters, we find that the introduction of a performancebased bonus plan with participative goal setting is accompanied by lower goals that are more accurate predictors of subsequent sales performance. Statistical tests indicate that increased goal accuracy is attributable to managers 'meeting-but-not-beating' goals and to new information being impounded in goals. We further investigate how differences among managers are associated with goal levels. We find significant "manager effects" but no "supervisor effects." In additional tests we find that cross-sectional differences among managers are related to differing marginal returns to slack-building effort. Turning to the role of new information on goals, we find that prior period performance has incremental power to explain goal levels in the post-plan period. Our results provide field-based evidence that PFP and participative goal-setting affect the level and accuracy of goals, effects that are associated with both information exchange and with managers' incentives to influence goals.

Research paper thumbnail of Understanding Cost Management: What Can We Learn from the Evidence on 'Sticky Costs'?

Social Science Research Network, 2007

Research paper thumbnail of Study guide for use with Fundamentals of cost accounting

McGraw-Hill/Irwin eBooks, 2008

Research paper thumbnail of The Emergence of Coporate ABC Initiatives: Towards a Model of ABC Implementation

This chapter provides a narrative history of the emergence of ABC as a corporate initiative in th... more This chapter provides a narrative history of the emergence of ABC as a corporate initiative in the firms in our study. A major theme that runs through both accounts is the bureaucratic processes associated with bringing ABC to corporate consciousness and evaluating its potential as a corporate initiative. We use the term “bureaucratic” not in a pejorative sense, but to highlight a major difference between implementing ABC in a small versus a large firm. In a small firm a single ABC model can include all costs and the “pilot” study is the forerunner of the completed model. In a large firm hundreds of ABC models are needed to capture all of the business activities and costs of the firm, and any pilot study of necessity provides only a glimpse of the likely future challenges, costs and benefits of deploying ABC to the full organization. We use our observations at General Motors and Chrysler, as well as literature on the implementation of information technology and cost management change to develop a model of ABC implementation.

Research paper thumbnail of Designing Quality into Products: The Use of Accounting Data in New Product Development

Abstract: Accountants have developed tools to evaluate firms' quality performance; however, ... more Abstract: Accountants have developed tools to evaluate firms' quality performance; however, a focus on evaluating one aspect of quality?? conformance to pre-established specifications?? has limited unnecessarily accountants' contribution to quality ...

Research paper thumbnail of Strategic Cost Management in Supply Chains, Part 2: Executional Cost Management

Strategic cost management is the deliberate alignment of a firm's resources and associated cost s... more Strategic cost management is the deliberate alignment of a firm's resources and associated cost structure with long-term strategy and short-term tactics. Although managers continue to pursue efficiency and effectiveness within the firm, increasingly, improvements are obtained across the value chain, through reconfiguring firm boundaries, relocating resources, reengineering processes, and reevaluating product and service offerings in relation to customer requirements. The first paper in this two-part series reviewed structural cost management in supply chains ͑Anderson and Dekker 2009͒. Structural cost management employs tools of organizational design, product design, and process design to create a supply chain cost structure that is coherent with firm strategy. In this second paper of the series we consider executional cost management in supply chains. Executional cost management employs measurement and analysis tools ͑e.g., cost driver analysis, supplier scorecards͒ to evaluate supply chain performance and sustainability. Using selected studies in accounting, operations management, and business strategy, we provide an overview of strategic cost management in supply chains, highlight contemporary developments, and suggest directions for future research.

Research paper thumbnail of The value of management control systems : evidence on the market reaction to ISO 9000 quality assurance certification

Research paper thumbnail of Why Firms Seek Iso 9000 Certification: Regulatory Compliance or Competitive Advantage?

Production and Operations Management, Jan 5, 2009

Proponents of Is0 9000 certification claim that it is a low-cost signal of a firm's commitment to... more Proponents of Is0 9000 certification claim that it is a low-cost signal of a firm's commitment to quality and a meaningful component of total quality management (TQM). Critics claim that it has little relation to TQM and is a tariff on international trade. We test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision. The-results support the view of proponents of ISO 9000. After controlling for regulatory and customer pressures to obtain ISO 9000, other factors related to quality management and quality-based competition explain the adoption decision.

Research paper thumbnail of Fundamentals of Cost Accounting

Issues in Accounting Education, Nov 1, 2010

The policy of Issues in Accounting Education is to publish only those reviews solicited by the Bo... more The policy of Issues in Accounting Education is to publish only those reviews solicited by the Book Reviews Editor. Unsolicited reviews will not be accepted.

Research paper thumbnail of Costly Control: An Examination of the Trade-off Between Control Investments and Residual Risk in Interfirm Transactions

Management Science, Jul 1, 2017

Transaction cost economics predicts that investments in management control will enable risky inte... more Transaction cost economics predicts that investments in management control will enable risky interfirm transactions. Risk is rarely eliminated, because firms trade off costs of management control and expected costs of control loss (together, the "cost of control"). The resultant solution typically comprises a mix of control investments with residual performance and residual relational risks. Transaction cost economics also predicts that the control-residual risk tradeoff will vary with the cost of control. We use survey data on 287 risky information technology transactions to test whether the control-residual risk tradeoff varies predictably with two partnership-specific factors that proxy for variation in the cost of control: prior ties between exchange partners and the criticality of strategic resources to the transaction. The results support the hypotheses, providing novel evidence on tradeoffs that managers make when investing in management controls while also prudently accepting some risks.

Research paper thumbnail of Where are They Now? Reflections on the Past Five Years

Springer eBooks, 2001

The genesis of ABC at General Motors Corporation and at what is now the Chrysler Group of Daimler... more The genesis of ABC at General Motors Corporation and at what is now the Chrysler Group of Daimler-Chrysler AG can be traced to the mid and late 1980’s, respectively. As researchers, we were privileged to observe and interact with these firms throughout the 1990’s, when ABC was rolled out to all manufacturing locations and some administrative functions. Our most intensive interactions occurred in 1995, with extensive Visits to 21 ABC implementation sites and interviews with 265 managers and ABC team members. Using these data and historical archives from the ABC systems, the preceding chapters provide a piercing look at the first decade of ABC through the lens of two large companies that chose to adopt and implement it. However, we would be remiss if we did not consider how events of recent years --- including dramatic changes in the boundaries and ownership of both firms, advances in information technology, and a booming U.S. consumer market --- have affected the ABC initiative. In this chapter we provide an update on the ABC initiatives. With the help of experienced corporate managers who have been involved for many years with ABC, we reflect on what ABC was, what it is today, what is envisioned for the future.

Research paper thumbnail of When one size does not fit all: Using ex post subjective ratings to provide parity in risk-adjusted compensation

Management Accounting Research, Dec 1, 2020

General rights Copyright and moral rights for the publications made accessible in the public port... more General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

Research paper thumbnail of A Framework for assessing cost management system changes : the case of activity based costing implementation at General Motors, 1986-1993

Research paper thumbnail of Economic transition, strategy and the evolution of management accounting practices: the case of India

Accounting Organizations and Society, Jul 1, 1999

Liberalization of the Indian economy in 199I increased the intensity of international competition... more Liberalization of the Indian economy in 199I increased the intensity of international competition and changed the internal information needs of Indian managers. This paper explores the evolut]on of a broad range of management accounting practices in 14 firms using a contingency theory framework. Differences in management accounting practices in 1996 are examined in relation to firms' experience m and exposure to world markets prior to liberalization and as a function of contemporaneous differences in competitive strategy. We find evidence of changes associated with shifts in the external environment.

Research paper thumbnail of Factors Influencing the Performance of ABC Teams

Springer eBooks, 2001

In the previous chapter we discussed the process by which ABC teams were formed and described tea... more In the previous chapter we discussed the process by which ABC teams were formed and described team characteristics. In this chapter, we probe more deeply into a key element of the team process and consider team functioning and team composition against a backdrop of extensive research on the effective use of teams in organizations.1

Research paper thumbnail of Dasar-dasar Akuntansi Biaya : Edisi 4 Buku 1

xxiv, 574 hlm.; 28 x 21 c

Research paper thumbnail of Accounting in Networks: The Transaction Cost Economics Perspective

Research paper thumbnail of Implementing Management Innovations

Research paper thumbnail of Risk Management in Strategic Alliances: Field Evidence

Social Science Research Network, 2009

We examine the portfolio of management controls used to mitigate alliance risk at three separate ... more We examine the portfolio of management controls used to mitigate alliance risk at three separate firms in order to analyze the suitability of management control frameworks proposed by Simons (1995), Merchant and Van der Stede (2007), and Jensen and Meckling (1992) as descriptors of controls used in interfirm alliances. We find that, for the most part, these frameworks generalize to fit the data on how firms manage risks of strategic alliances. However, in applying these frameworks successively to the same data, we find that the researcher's theoretical lens imparts a distinctive understanding of the function of alliance management controls in relation to alliance risk. Specifically, we conclude that alliances that have value-creation at their root engender management controls that are well described by the management control frameworks of Simons (1995) and Merchant and Van der Stede (2007). These frameworks comprehend both economic and behavioral aspects of interfirm exchange and place much weight on coordination and communication between alliance partners. The management controls employed in alliances focused on transaction efficiency and cost minimization are described equally well by the framework of Jensen and Meckling (1992), which relies heavily on economic theory.

Research paper thumbnail of Evidence on the Cost Hierarchy: The Association between Resource Consumption and Production Activities

Journal of Management Accounting Research, Sep 1, 2012

Modern cost accounting posits that manufacturing overhead costs vary with production unit volume,... more Modern cost accounting posits that manufacturing overhead costs vary with production unit volume, batches of production, and with the variety of products produced. However, many studies fail to find an association between manufacturing overhead costs and activities associated with production batches and product variety; rather, the traditional fixed and (unit) variable cost structure is validated. One explanation is that flexible manufacturing methods and optimized production scheduling restore the relevance of the traditional cost model. Another explanation is that the relation holds, but is not detectable because of limitations of the data used in these studies. We explore the separate and joint impacts of these data limitations using data from a modern float glass manufacturing plant and a new time-driven activity-based costing model suggested by Kaplan and Anderson (2004, 2007). We find that: (1) batch and product-variety-related activities are significantly associated with resource consumption, (2) crude measures of activity promote incorrect conclusions about the strength of the relation between activities and resource consumption, and (3) monthly aggregation of data obscures important aspects of the relation between daily production activities and resource consumption. In sum, even in a highly automated setting that is biased against finding evidence of the cost hierarchy because production scheduling is optimized to minimize batch and product-variety-related resource consumption, the cost hierarchy is an apt description of the association between resource consumption and production activity. However, improved measurement and cost model specification are necessary to reveal this association.

Research paper thumbnail of An Empirical Examination of Goals and Performance-to-Goal Following the Introduction of an Incentive Bonus Plan with Participative Goal-setting

Social Science Research Network, 2010

Prior research documents performance improvements following the implementation of pay-forperforma... more Prior research documents performance improvements following the implementation of pay-forperformance (PFP) bonus plans. However, bonus plans typically pay for performance relative to a goal and the manager whose performance is to be evaluated often participates in setting goals. In these settings PFP affects managers' incentive to influence goal levels in addition to affecting performance effort. Prior field research is silent on the effect of PFP on goals, the focus of this paper. Using sales and sales goal data from 61 stores of a U.S. retail firm over 10 quarters, we find that the introduction of a performancebased bonus plan with participative goal setting is accompanied by lower goals that are more accurate predictors of subsequent sales performance. Statistical tests indicate that increased goal accuracy is attributable to managers 'meeting-but-not-beating' goals and to new information being impounded in goals. We further investigate how differences among managers are associated with goal levels. We find significant "manager effects" but no "supervisor effects." In additional tests we find that cross-sectional differences among managers are related to differing marginal returns to slack-building effort. Turning to the role of new information on goals, we find that prior period performance has incremental power to explain goal levels in the post-plan period. Our results provide field-based evidence that PFP and participative goal-setting affect the level and accuracy of goals, effects that are associated with both information exchange and with managers' incentives to influence goals.

Research paper thumbnail of Understanding Cost Management: What Can We Learn from the Evidence on 'Sticky Costs'?

Social Science Research Network, 2007

Research paper thumbnail of Study guide for use with Fundamentals of cost accounting

McGraw-Hill/Irwin eBooks, 2008

Research paper thumbnail of The Emergence of Coporate ABC Initiatives: Towards a Model of ABC Implementation

This chapter provides a narrative history of the emergence of ABC as a corporate initiative in th... more This chapter provides a narrative history of the emergence of ABC as a corporate initiative in the firms in our study. A major theme that runs through both accounts is the bureaucratic processes associated with bringing ABC to corporate consciousness and evaluating its potential as a corporate initiative. We use the term “bureaucratic” not in a pejorative sense, but to highlight a major difference between implementing ABC in a small versus a large firm. In a small firm a single ABC model can include all costs and the “pilot” study is the forerunner of the completed model. In a large firm hundreds of ABC models are needed to capture all of the business activities and costs of the firm, and any pilot study of necessity provides only a glimpse of the likely future challenges, costs and benefits of deploying ABC to the full organization. We use our observations at General Motors and Chrysler, as well as literature on the implementation of information technology and cost management change to develop a model of ABC implementation.

Research paper thumbnail of Designing Quality into Products: The Use of Accounting Data in New Product Development

Abstract: Accountants have developed tools to evaluate firms' quality performance; however, ... more Abstract: Accountants have developed tools to evaluate firms' quality performance; however, a focus on evaluating one aspect of quality?? conformance to pre-established specifications?? has limited unnecessarily accountants' contribution to quality ...

Research paper thumbnail of Strategic Cost Management in Supply Chains, Part 2: Executional Cost Management

Strategic cost management is the deliberate alignment of a firm's resources and associated cost s... more Strategic cost management is the deliberate alignment of a firm's resources and associated cost structure with long-term strategy and short-term tactics. Although managers continue to pursue efficiency and effectiveness within the firm, increasingly, improvements are obtained across the value chain, through reconfiguring firm boundaries, relocating resources, reengineering processes, and reevaluating product and service offerings in relation to customer requirements. The first paper in this two-part series reviewed structural cost management in supply chains ͑Anderson and Dekker 2009͒. Structural cost management employs tools of organizational design, product design, and process design to create a supply chain cost structure that is coherent with firm strategy. In this second paper of the series we consider executional cost management in supply chains. Executional cost management employs measurement and analysis tools ͑e.g., cost driver analysis, supplier scorecards͒ to evaluate supply chain performance and sustainability. Using selected studies in accounting, operations management, and business strategy, we provide an overview of strategic cost management in supply chains, highlight contemporary developments, and suggest directions for future research.

Research paper thumbnail of The value of management control systems : evidence on the market reaction to ISO 9000 quality assurance certification

Research paper thumbnail of Why Firms Seek Iso 9000 Certification: Regulatory Compliance or Competitive Advantage?

Production and Operations Management, Jan 5, 2009

Proponents of Is0 9000 certification claim that it is a low-cost signal of a firm's commitment to... more Proponents of Is0 9000 certification claim that it is a low-cost signal of a firm's commitment to quality and a meaningful component of total quality management (TQM). Critics claim that it has little relation to TQM and is a tariff on international trade. We test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision. The-results support the view of proponents of ISO 9000. After controlling for regulatory and customer pressures to obtain ISO 9000, other factors related to quality management and quality-based competition explain the adoption decision.

Research paper thumbnail of Fundamentals of Cost Accounting

Issues in Accounting Education, Nov 1, 2010

The policy of Issues in Accounting Education is to publish only those reviews solicited by the Bo... more The policy of Issues in Accounting Education is to publish only those reviews solicited by the Book Reviews Editor. Unsolicited reviews will not be accepted.

Research paper thumbnail of Costly Control: An Examination of the Trade-off Between Control Investments and Residual Risk in Interfirm Transactions

Management Science, Jul 1, 2017

Transaction cost economics predicts that investments in management control will enable risky inte... more Transaction cost economics predicts that investments in management control will enable risky interfirm transactions. Risk is rarely eliminated, because firms trade off costs of management control and expected costs of control loss (together, the "cost of control"). The resultant solution typically comprises a mix of control investments with residual performance and residual relational risks. Transaction cost economics also predicts that the control-residual risk tradeoff will vary with the cost of control. We use survey data on 287 risky information technology transactions to test whether the control-residual risk tradeoff varies predictably with two partnership-specific factors that proxy for variation in the cost of control: prior ties between exchange partners and the criticality of strategic resources to the transaction. The results support the hypotheses, providing novel evidence on tradeoffs that managers make when investing in management controls while also prudently accepting some risks.

Research paper thumbnail of Where are They Now? Reflections on the Past Five Years

Springer eBooks, 2001

The genesis of ABC at General Motors Corporation and at what is now the Chrysler Group of Daimler... more The genesis of ABC at General Motors Corporation and at what is now the Chrysler Group of Daimler-Chrysler AG can be traced to the mid and late 1980’s, respectively. As researchers, we were privileged to observe and interact with these firms throughout the 1990’s, when ABC was rolled out to all manufacturing locations and some administrative functions. Our most intensive interactions occurred in 1995, with extensive Visits to 21 ABC implementation sites and interviews with 265 managers and ABC team members. Using these data and historical archives from the ABC systems, the preceding chapters provide a piercing look at the first decade of ABC through the lens of two large companies that chose to adopt and implement it. However, we would be remiss if we did not consider how events of recent years --- including dramatic changes in the boundaries and ownership of both firms, advances in information technology, and a booming U.S. consumer market --- have affected the ABC initiative. In this chapter we provide an update on the ABC initiatives. With the help of experienced corporate managers who have been involved for many years with ABC, we reflect on what ABC was, what it is today, what is envisioned for the future.

Research paper thumbnail of When one size does not fit all: Using ex post subjective ratings to provide parity in risk-adjusted compensation

Management Accounting Research, Dec 1, 2020

General rights Copyright and moral rights for the publications made accessible in the public port... more General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

Research paper thumbnail of A Framework for assessing cost management system changes : the case of activity based costing implementation at General Motors, 1986-1993

Research paper thumbnail of Economic transition, strategy and the evolution of management accounting practices: the case of India

Accounting Organizations and Society, Jul 1, 1999

Liberalization of the Indian economy in 199I increased the intensity of international competition... more Liberalization of the Indian economy in 199I increased the intensity of international competition and changed the internal information needs of Indian managers. This paper explores the evolut]on of a broad range of management accounting practices in 14 firms using a contingency theory framework. Differences in management accounting practices in 1996 are examined in relation to firms' experience m and exposure to world markets prior to liberalization and as a function of contemporaneous differences in competitive strategy. We find evidence of changes associated with shifts in the external environment.