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1 – 10 of over 8000This study aims to examine the impact of implementing target costing and continuous improvement techniques in industrial companies operating in southern Palestine on achieving…
Abstract
Purpose
This study aims to examine the impact of implementing target costing and continuous improvement techniques in industrial companies operating in southern Palestine on achieving sustainable competitive advantage (SCA). The study mainly assesses the level of application of these techniques by Palestinian industrial companies (PICs). Furthermore, it evaluates the extent to which the integration of these two methods can impact SCA, by producing cost-effective and innovative products that meet customer demands and needs, while simultaneously achieving continuous development of the company and an SCA.
Design/methodology/approach
A descriptive analytical approach was used to study the target costing and continuous improvement techniques employed by industrial companies in southern Palestine. A questionnaire was administered to 415 companies in the southern West Bank to collect data on the application of target cost and continuous improvement and their impact on SCA, measured through market share, differentiation and cost reduction. Control variables, such as company age, size (measured by the number of employees) and industrial sector classification were also included in the study model.
Findings
The findings of the study revealed that the PICs apply target costing and continuous improvement at a high level. Furthermore, all dimensions of achieving SCA were found to be achieved at a high level, with market share being the most prominent. The study also found that the integration of the target costing and continuous improvement had a positive impact on achieving SCA in the PICs. However, the study found no impact on company size, age or industrial sector on achieving a competitive advantage in terms of market share or other results.
Research limitations/implications
The current study was limited to the application of strategic management methods to companies within the industrial sector only. This may constitute a limitation because it neglected other sectors. Likely, another limitation was the difficulty of obtaining the quantitative numbers needed for some quantitative variables that pertain to that type of industrial companies, which are mostly family companies that could not be regulated by the local companies' law to disclose their financial statement.
Practical implications
If industrial companies have ambitions to reduce production costs from the planning and design stage to set the target selling price. It is based on the understanding and awareness of customers' desires while maintaining the quality of products according to the best methods of improvement and innovation; therefore, this can be achieved by using the target costing and the continuous improvement techniques through reviewing the current study and its results.
Social implications
The current study sought to link two methods, simultaneously and complementary, with each other of the strategic methods of managerial accounting, which helps the companies to offer their best to attract customers, develop the product or service and maintain their continuity in a changing labor market that enables it to achieve sustainable and competitive advantage.
Originality/value
This study is unique in that it explores the impact of the integration of target costing or continuous improvement techniques (Kaizen) on achieving SCA in Palestine industrial companies. While previous studies have examined either target costing or continuous improvement techniques separately, this study enhances the integration of these two methods to achieve SCA.
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Micael Thunberg and Anna Fredriksson
The purpose of this study is to identify how the responsibilities and costs of planning, controlling and executing the material, resource and waste flows are shifted between…
Abstract
Purpose
The purpose of this study is to identify how the responsibilities and costs of planning, controlling and executing the material, resource and waste flows are shifted between actors when introducing a construction logistics setup (CLS) as a product innovation in a construction project, compared to the traditional way of organizing these activities.
Design/methodology/approach
This study is an analytical conceptual research study which aims to bring new insights into a problem through logical relationship building. Empirical data are gathered in two cases where CLSs are used, through observations and interviews regarding how the activities within the order-to-delivery process are performed. The results have been discussed at workshops with suppliers, installation companies, contractor firms and trade unions.
Findings
The outcome of this study is a model for illustrating how costs and responsibilities are shifted in the construction project and supply chain when a CLS is introduced. The cost shift is dependent on the activity shift that accompanies the services included in the setup.
Practical implications
The practical contribution of this work is twofold. First, this study provides a methodology of how to evaluate the impact of logistics services on the actors in the construction project. Second, this study shows shifts in costs and responsibilities in logistics activities with the introduction of construction logistics services.
Originality/value
The theoretical contributions of the model and this study lie in the inclusion of a multi-actor perspective in total cost modelling in supply chains.
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Md. Mamunur Rashid, Md. Mohobbot Ali and Dewan Mahboob Hossain
The purpose of this study is to review the empirical studies that have focused on the adoption, benefits and contingencies of strategic management accounting (SMA) practices and…
Abstract
Purpose
The purpose of this study is to review the empirical studies that have focused on the adoption, benefits and contingencies of strategic management accounting (SMA) practices and the effects of adoption on firm performance.
Design/methodology/approach
The study has highlighted empirical studies conducted on SMA practices in the context of both developed [1] and developing economies. In reviewing the literature, the study focuses on the findings of developed economy separately from that of developing economy to get more insight into the differences in the practices of the two set of economies. Based on the review, avenues for future research studies are outlined.
Findings
The review of extant literature reveals that several SMA techniques such as competitor accounting, strategic pricing, benchmarking and customer accounting have been highly or moderately adopted in several developed countries while majority of other techniques remained at the bottom line of the adoption status. However, the review demonstrates substantial differences in the SMA practices between the two set of economies in terms of the level of adoption, contingent factors and the effects of adoption.
Originality/value
The study attempts to focus on empirical studies that have concentrated exclusively on SMA practices. The adoption status, benefits derived, contingent factors affecting the adoption decision and the effect of adopting a package of SMA techniques on several aspects of firm performance are presented in the context of both developed and developing economies.
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Monique Rieger Rodrigues and Søren Munch Lindhard
The traditional construction delivery method is challenged by low trust and collaboration issues, resulting in increased project costs. The integrated project delivery (IPD…
Abstract
Purpose
The traditional construction delivery method is challenged by low trust and collaboration issues, resulting in increased project costs. The integrated project delivery (IPD) method is developed, through a contractual agreement, to overcome these challenges by creating a common set of terms, expectations and project goals.
Design/methodology/approach
A singular construction case was followed during a four-month period. Data collection consisted of contract documents and a series of semi-structured interviews with representatives from the owner, design-group and contractors.
Findings
The IPD contract was found to have a number of positive effects; it improved project behavior (e.g. trust, collaboration and communication), increased ownership among project participants and improved buildability of the design, leading to fewer surprises and interruptions in the construction phase. The study also revealed a number of challenges including contractual and legal challenges and involving too many participants in the early phases. Moreover, co-location was identified as a particular important supporting element, to build relations and improve collaboration.
Originality/value
This research identified lessons learned from the application, as well as initial barriers and persistent barriers for implementing IPD. To improve IPD application the top three lessons were as follows: 1) the contractual documents should be adapted and signed at an early stage as this increases financial transparency, 2) cost estimates should be carried as an iterative process and project main concept be freezed at an early stage to increase understanding and minimize risks, 3) only the most important project developers should be involved in the early phases, to avoid going into detailed design issues before the main concept is completed.
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Justyna Dobroszek, Paulo Reis Mourão and Maciej Urbaniak
This paper aims to identify purchasing-related costs through the prism of transaction costs and costs of purchasing management activity.
Abstract
Purpose
This paper aims to identify purchasing-related costs through the prism of transaction costs and costs of purchasing management activity.
Design/methodology/approach
The authors conducted a survey among 150 medium and large manufacturing companies in the chemical, automotive and electromechanical industries operating in Central and Eastern European countries. The collected data were analyzed using confirmatory factor analysis.
Findings
The studied companies carry out an integrated purchasing-related cost system. The authors found a statistical significance of the covariances between the pretransaction, transaction and post-transaction costs. In addition, costs that are of particular importance in long-term purchasing transactions were identified. Moreover, the authors identified the costs of quality and support actions as the most significant.
Practical implications
This research details the discussion of costs with consideration for the insights of managers of medium-sized and large companies.
Originality/value
The paper contributes to the knowledge of purchasing-related costs through the lens of the total cost of ownership that influences the purchasing management and the decisions within the buyer-supplier relationship.
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Michael Thomas Hayden, Ruth Mattimoe and Lisa Jack
The purpose of this paper is to contribute to a better understanding of the financial decision-making process of farmers and to highlight the potential role that improved farm…
Abstract
Purpose
The purpose of this paper is to contribute to a better understanding of the financial decision-making process of farmers and to highlight the potential role that improved farm financial management (FFM) could play in developing sustainable farm enterprises.
Design/methodology/approach
This paper adopts a qualitative approach with 27 semi-structured interviews exploring farmers’ financial decision-making processes. Subsequently, the interview findings were presented to a focus group. Sensemaking theory is adopted as a theoretical lens to develop the empirical findings.
Findings
The evidence highlights that FFM has a dual role to play in farmer decision-making. Some FFM activities may act as a cue, which triggers a sensebreaking activity, causing the farmer to enter a process of sensemaking whilst some/other FFM activities are drawn upon to provide a sensegiving role in the sensemaking process. The role of FFM in farmer decision-making is strongly influenced by the decision type (strategic or operational) being undertaken and the farm type (dairy, tillage or beef) in operation.
Originality/value
The literature suggests that the majority of farmers spend little time on financial management. However, there are farmers who have quite a high level of engagement in FFM activities, when undertaking strategic farm expansion decisions. Those FFM activities help them to navigate through operational decision-making and to make sense of their strategic decision-making.
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Nina Detzen, Frank H.M. Verbeeten, Nils Gamm and Klaus Möller
The purpose of this paper is to investigate the effects of two formal controls, namely target rigidity and process autonomy, on team adaptability and project success in new…
Abstract
Purpose
The purpose of this paper is to investigate the effects of two formal controls, namely target rigidity and process autonomy, on team adaptability and project success in new product development (NPD) projects. Target rigidity refers to performance goals that are non-negotiable once they have been set. Process autonomy refers to the extent to which a project team is free to choose ways to achieve its goals. Team adaptability is considered a key factor that explains the relationship between formal controls and project success.
Design/methodology/approach
Two separate models related to resource and cost measures are analysed, since different target types may influence managerial perceptions. This study uses data collected from a survey with 113 project managers as respondents.
Findings
The findings show that target rigidity and process autonomy support team adaptability. Furthermore, team adaptability mediates the impact of formal controls on project success. The effects are more pronounced for cost targets as compared to resource targets.
Practical implications
Firms can increase project success by using formal controls in such a way that they allow project managers to provide their teams with motivating guidelines (target rigidity) and discretion (process autonomy) to adapt to new circumstances.
Originality/value
This study reveals the impact of formal controls on NPD project success through team adaptability. A balanced use of target rigidity and process autonomy may help improving NPD project success.
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The purpose of this paper is to examine the effects of the post-merger integration duration on acquiring firms’ leverage behavior before and after a merger, using a dynamic model…
Abstract
Purpose
The purpose of this paper is to examine the effects of the post-merger integration duration on acquiring firms’ leverage behavior before and after a merger, using a dynamic model in which full merger benefits cannot be consumed at the instant of a merger, but rather after a pre-specified post-merger integration period.
Design/methodology/approach
This paper presents a dynamic model and empirical tests that describe the impact of the post-merger integration period on the capital structure dynamics of the acquiring and target firms prior to a merger and during the post-merger integration period. By incorporating costs associated with the post-merger integration period, the model can provide new implications for the leverage behavior around the merger.
Findings
Empirical tests support the model implications by showing that the longer the expected post-merger integration process, the less likely the acquirer will structure the financing of the combined firm in a manner that increases firm leverage. Since integration takes time to complete, an acquirer tends to retain financial flexibility during the integration process by assuming lower levels of debt when determining the capital structure of the merged entity.
Originality/value
The model generates new implications related to acquiring firms’ leverage dynamics along with the method of payment choice. The analysis of the duration of the post-merger integration period extends both the theoretical and empirical literature that tacitly assumes that the merger-related synergy is realized immediately at the merger date. This is the first model in the literature that assumes that both the acquiring and the target firms can change their capital structure overtime, which allows us to analyze both the financing structure and the merger timing. Previous empirical studies also ignore the integration period in the analysis of the method of payment choice and leverage behavior around mergers. The model in this paper can be extended along a number of dimensions.
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