Anderson, Banker and Janakiraman [2003] find that the absolute change in SG&A cost associated with decreased sales activity is systematically less than that associated with increased sales activity (so-called “sticky” costs). They interpret this as evidence of overt cost management. We...

Electronic data interchange (EDI) is an information technology that standardizes the exchange of information between transacting parties. Using data from a major U.S. office furniture manufacturer who adopted EDI primarily to improve the efficiency of accounting transactions, we evaluate whether...

This article shows how activity-based costing concepts can be adapted to measure quality-related costs and prioritize quality improvement efforts. It first reviews three levels of activity analysis that can be used to quantify the internal costs arising from failure to meet customer...

This study examines the impact of product variety on automobile assembly plant performance using data from GM's Wilmington, Delaware plant, together with simulation analyses of a more general auto assembly line. We extend prior product variety studies by providing evidence on the magnitude of...

Using detailed data on defect rates and quality costs from twelve plants of a Fortune 500 company, we provide the first direct tests of predictions arising from two sets of dynamic quality-based learning models. We find greater support for quality-based learning models that assume learning is a...

This essay discusses how incorporating qualitative analyses and insight in positivist field studies can strengthen researchers’ ability to draw causal inferences. Specifically, I review how the rich institutional knowledge available in field settings can be used to increase internal validity...