Relationship between Performance and Organizational Capabilities in Target Cost Management: Mail Survey to Design Engineers

Abstract

The purpose of this paper is exploring the relation of organizational capabilities for target cost management (TCM) to the performance and design engineer’s burnout. For this purpose, the questionnaire was.distributed to 171 engineers in 4 companies.

Based on the data, we carried out three analysis. First, we explored the correlation between the rate of use, usefulness and skill level of each TCM tool. At the results, it were some spread way tools that we found out the positive correlation between the usefulness and the skill level. However, we couldn’t identify it among many other tools. Secondly, we investigated the difference in TCM capabilities between success and failure projects. At the results, we found out the difference on factors relating to coordination and information sharing among departments or organizations. The other hand, we could hardly identify it relating to TCM tools. Thirdly, we analyzed regression that independent variables were TCM capabilities and subordinate variables were the performance and engineer’s burnout. At the results, we identified that organizational structure and process factors have larger influences than TCM tools.