Accounting information sharing within buyer-supplier collaborations: Insights from a developing country

Abstract

Background: The significance of the context, or the environment, is pivotal in influencing the practices of management accounting.

Objectives: This article aims to explore the significance, methods and challenges of accounting information exchange in buyer–supplier collaborations.

Method: In buyer–supplier collaborations, data are gathered from 13 semi-structured interviews and 250 questionnaires. The analysis is conducted using SPSS version 25, employing non-parametric Kruskal–Wallis test and content analysis techniques.

Results: Respondents recognise its benefits but prefer informal communication. Challenges such as diverse systems and mistrust hinder formal sharing. Despite obstacles, informal channels remain effective, although concerns about data leakage persist, leading to a conservative approach.

Conclusion: In the Egyptian textile supply chain, members prioritise individual goals over collective ones. Informal methods, such as backdoor access, facilitate accounting information sharing among buyer–supplier partnerships. Formal sharing protocols are lacking, with limited one-way technical data exchange. Trust issues and data security concerns persist. Despite the absence of formal disclosure, cost estimations remain feasible. The company adopts a conservative approach, limiting access to records in most cases.

Contribution: In essence, the article not only sheds light on the complexities and nuances surrounding accounting information sharing in the textile supply chain but also emphasises the resilience of informal communication channels in overcoming challenges. As the industry navigates these dynamics, recognising the importance of relational ties and informal exchanges could be pivotal in fostering a more efficient and collaborative supply chain ecosystem.