Research Article
Cost Information, Management Control System and Experience: Experimental Testing on Cost Effectiveness of New Product Development
@INPROCEEDINGS{10.4108/eai.18-12-2023.2350231, author={Dyah Ekaari Sekar Jatiningsih and Nurbela Salsabila Herman}, title={Cost Information, Management Control System and Experience: Experimental Testing on Cost Effectiveness of New Product Development}, proceedings={Proceedings of the 1st UHAMKA International Conference on Economics and Business, UHICEB 2023, 18-19 December 2023, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={UHICEB}, year={2024}, month={11}, keywords={cost-effective design new product development cost information management control system experience}, doi={10.4108/eai.18-12-2023.2350231} }- Dyah Ekaari Sekar Jatiningsih
Nurbela Salsabila Herman
Year: 2024
Cost Information, Management Control System and Experience: Experimental Testing on Cost Effectiveness of New Product Development
UHICEB
EAI
DOI: 10.4108/eai.18-12-2023.2350231
Abstract
The demand for product innovation currently pushes organizations to develop new products that may have optimum performance and may sustain in the business environment with its competitive advantage. This study tests the effect of three factors on new product cost-effectiveness, namely cost information, management control system, and experience. An experimental test is performed with 117 undergraduate student participants, adopting a 2x2x2 between-subject factorial design. Observing the cause-and-effect relationship, the result of the analysis reveals a three-way interaction effect of cost information, management control system, and designer’s experience in cost-effective product design. The result of the analysis acknowledges the notion from contingency theory which states that there is no single effect from some aspects of the organization on a particular operation, system, or structure. In this study context, new product development experiences three factors that may affect performance, namely cost information, management control, and experience. This study contributes to the literature by providing empirical evidence of contingent factors affecting product design, in a three-way interaction effect. In addition to the confirmed effect of cost information acknowledged in the previous study, current research confirms the joint effect of cost information, management control, and experience
