Developing a Framework to Study the Impact of Contingent Factors on Business Performance Using Strategic Cost Management: A Meta-Analysis Study

Review Of Literature

Numerous researchers examined the inaccuracy of traditional costing approaches because it focuses primarily on cost control and not on gaining competitive advantage and revenue growth, leading to the adoption of new cost accounting techniques in the manufacturing and service industries (Jinkens & Yallapragada, 2010; Messner, 2016; Pavlatos, 2015; Auzair, 2015). Strategic cost management is an ideology and a combination of methods that help define the company's future and compare it to conventional cost management (Kumar & Shafabi, 2011). The value provided by SCM and its array of accounting systems have been incorporated to provide a sustainable competitive advantage to the manufacturing and service industries (Savić et al., 2014). Liu (2015) also emphasized on the importance of SCM in modern businesses to strengthen the competitiveness of businesses.

In an attempt to gain competitive advantage, several researches about the use of contemporary strategic management techniques in companies were conducted and a perspective was taken from the respondents (Janjić et al., 2017). Another author (Sulanjaku & Shingjergji, 2015) aimed at evaluating the SCM framework and defining the most commonly used SCM accounting instruments. SCM strategies are used to prepare and execute short-term and long-term decisions, which in turn leads to cost savings as well as an enhancement in product value.