The competitive environment and strategy of target costing implementers: evidence from the field.(a link is found between target costing and firm ... An article from: Journal of Managerial Issues
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PublisherThomson Gale
ISBN / ASINB0008DGGJS
ISBN-13978B0008DGGJ8
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This digital document is an article from Journal of Managerial Issues, published by Thomson Gale on March 22, 2003. The length of the article is 6804 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: Target costing (TC) is an emerging tool in strategic cost management that is used to reduce costs and to assist management in making strategic decisions. Researchers have noted a link should exist between a firm's TC program and competitive strategy (Ansari and Bell, 1997). This study evaluates the competitive environment and strategy of firms that have been identified as implementers of TC to determine whether specific environmental factors coupled with firm strategy can be traced to a firm's decision to adopt TC. Of particular interest is whether product differentiators, cost leaders (Porter, 1985) or implementers of Cooper's (1995) confrontational strategy are more likely to adopt a TC program as a function of their competitive environment. Data were gathered through interviews with managers. Each firm was analyzed separately and collectively to determine whether patterns exist in the competitive environment and strategy. The sample includes both U.S. and German companies that have adopted TC. We used a re latively new statistical technique, known as Classification and Regression Trees (CART), to determine relationships among the independent variables that explain and predict the competitive environment of TC adopters. Our results support the expected relationship between strong competitive forces and the use of TC. Intense rivalry among competitors appears to be a driving force in the competitive environment of TC firms. This study lays the groundwork for further research concerning the types of firms adopting the system and the identification of factors leading to successful implementation of TC.
Citation Details
Title: The competitive environment and strategy of target costing implementers: evidence from the field.(a link is found between target costing and firm strategy)
Author: Aleecia R. Hibbets
Publication:Journal of Managerial Issues (Magazine/Journal)
Date: March 22, 2003
Publisher: Thomson Gale
Volume: 15 Issue: 1 Page: 65(19)
Distributed by Thomson Gale
From the author: Target costing (TC) is an emerging tool in strategic cost management that is used to reduce costs and to assist management in making strategic decisions. Researchers have noted a link should exist between a firm's TC program and competitive strategy (Ansari and Bell, 1997). This study evaluates the competitive environment and strategy of firms that have been identified as implementers of TC to determine whether specific environmental factors coupled with firm strategy can be traced to a firm's decision to adopt TC. Of particular interest is whether product differentiators, cost leaders (Porter, 1985) or implementers of Cooper's (1995) confrontational strategy are more likely to adopt a TC program as a function of their competitive environment. Data were gathered through interviews with managers. Each firm was analyzed separately and collectively to determine whether patterns exist in the competitive environment and strategy. The sample includes both U.S. and German companies that have adopted TC. We used a re latively new statistical technique, known as Classification and Regression Trees (CART), to determine relationships among the independent variables that explain and predict the competitive environment of TC adopters. Our results support the expected relationship between strong competitive forces and the use of TC. Intense rivalry among competitors appears to be a driving force in the competitive environment of TC firms. This study lays the groundwork for further research concerning the types of firms adopting the system and the identification of factors leading to successful implementation of TC.
Citation Details
Title: The competitive environment and strategy of target costing implementers: evidence from the field.(a link is found between target costing and firm strategy)
Author: Aleecia R. Hibbets
Publication:Journal of Managerial Issues (Magazine/Journal)
Date: March 22, 2003
Publisher: Thomson Gale
Volume: 15 Issue: 1 Page: 65(19)
Distributed by Thomson Gale
