EconPapers    
Economics at your fingertips  
 

Target Costing Performance Based on Alternative Participation and Evaluation Methods: A Laboratory Experiment

Yasuhiro Monden, Mahmuda Akter and Naoto Kubo
Additional contact information
Yasuhiro Monden: University of Tsukuba, Tsukuba-shi, Ibaraki, Japan, Postal: University of Tsukuba, Tsukuba-shi, Ibaraki, Japan
Mahmuda Akter: University of Tsukuba, Tsukuba-shi, Ibaraki, Japan, Postal: University of Tsukuba, Tsukuba-shi, Ibaraki, Japan
Naoto Kubo: University of Tsukuba, Tsukuba-shi, Ibaraki, Japan, Postal: University of Tsukuba, Tsukuba-shi, Ibaraki, Japan

Managerial and Decision Economics, 1997, vol. 18, issue 2, 113-129

Abstract: This paper deals with the motivational impacts of alternative participation and performance-evaluation methods on the cost- reduction performance of product designers in the product development process. Alternative participation methods for establishing the target cost consist of the participative and the nonparticipative approaches. Also, the alternative performance-evaluation methods include evaluations based on only the controllable item measure and on both controllable and uncontrollable items measures. To test the hypothesis which are proposed with respect to the above impacts, a laboratory experiment was conducted on 120 subjects. When participation and performance evaluation factors are considered separately, the cost-reduction performance of product designers is improved if they can participate in the target-setting process and are evaluated by their controllable item information. In investigating their joint influence, it is found that the combination of the participative method and controllable item and nonparticipative and uncontrollable item information have improved cost-reduction performance. Among all the independent variables, controllable item information is the most dominant variable as it has the strongest influence on cost reduction. © 1997 John Wiley & Sons, Ltd.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:18:y:1997:i:2:p:113-129

DOI: 10.1002/(SICI)1099-1468(199703)18:2<113::AID-MDE814>3.0.CO;2-Y

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-20
Handle: RePEc:wly:mgtdec:v:18:y:1997:i:2:p:113-129