The Impact of Strategic Information to Achieve Competitive Advantage by Using Target Costing in Iraq Soft Drink Firms
|Author||Rizgar Abdullah Sabir|
|School||Huazhong University of Science and Technology|
|Keywords||Strategic Information Management Accounting Techniques TargetCosting Competitive Advantage Iraqi Soft Drinks Firms|
Presently, economic and technological developments are growing faster in an unparalleled way. The result of that is innovative changing a great deal of a great deal of assumption, concepts, transactions, and high of competition between companies all over the world. We also seek to examine the use of strategic information system (SIS) by Iraqi soft drink firms (ISDFs) and its contribution to realize a competitive advantage and strategic role of the firm. The industrial sector (ISDFs) has been chosen because of the recent growing competition from new companies in Iraq. In that regard, it has made intense competitive and significant role in supporting the economy. Also, it is considered as the most affected one by technological developments such information technology.We discuss this theme in the light of the influences of the available regulatory requirements for strategic information (SI) and the availability of technological requirements for (SI) in (ISDFs). Moreover, we must take it into consideration that they were independent variables. On the other hand, the impacts of strategic information are used to bring the competitive advantage through the factors such as the quality of products financial performance, control of the markets, innovation and development. Thus, efficient operations of (ISDFs) have been used in this study as the dependent variable. The title of the thesis is one of the subjects that get large concerns in the financial and business world in the present time. That is because many competitive firms have appeared in the regional and global markets and the rapid changes that covered all fields of life. The subjects of the dissertation have a special importance in making the firm’s businesses succeed in general and the industrial firms especially. In addition, it motivates the firms to look for new concepts and methods to achieve their competitive goals so that they ensure their existence and continuous growing.The dissertation covers seven Iraqi for soft drink firms a survey was conducted using a quantitative approach where the researchers distributed64questionnaires to select respondents. The response rate was78percent out of the total questionnaires distributed. The management accounting techniques is an independent variable which consists of six tools, namely, TQM, BPR, ABM, ABC, TC, JIT and was examined in relation to competitive advantage factors as a dependent variable which comprises cost leadership, differentiation and focus. The dissertation provides significant new insights into the development and implementation of cost management strategies that contribute to achieve a competitive advantage. The significant impact of Management Accounting Techniques on competitive advantage factors has been argued to be positive. The value of the dissertation is that it points out the influence of Management Accounting Techniques on competitive advantage factors in Iraqi soft drink firms in order to improve firm performance and efficiency. We confront this question here by The Impact of Strategic Information in Managerial Accounting Instruments to Achieve Competitive Advantage by Using Target costing, which endeavors to analyze the sources of wealth creation and capture by firms.The first aim of this dissertation is to analyze the effects of improvements in (IT) on strategic information system. Thereafter, using (SI) by management accountants as an effective tool to applying target costing approach will be examined. In order to substantiate these objectives of the dissertation, the researcher tries by examining and realizing some of cases later. The second aim of this dissertation is to address this gap between the theory and practice of management accounting by exploring the extent of the application of managerial accounting techniques and influence on strategic competitive advantage factor in (ISDFs). The third aim of this dissertation is to determining the influential role of information systems upon the competitive strategies, in (ISDFs) that follows the competitive advantage which they seek to achieve. In addition, it will clarify reliance on quantitative data that deals with readiness of firms for the information technology and their influence upon competitive advantage. The forth aim is to find appropriate solutions for the problems that the administrations are currently facing include maintaining their market shares and stay in thereafter. To do so, the administrations should out stand the role of target cost in the industrial firms to build up suitable competitive situations and approach competitive prices that show the impact of this advantage in the ongoing hasty changes in the market especially and business fields in general.Thus, The basically purpose of this study is to determine whether target costing is used in the costing application process in their customer expectation, profit margin, cost and price determination, cost reduction and management operations. In today’s intensely competitive and highly volatile business environment, consistent development of low cost and high quality products meeting the functional requirements is a key to a company’s survival. Companies continuously strive to reduce the costs while still producing quality products to stay ahead in the competition. Many companies have turned to target costing to achieve this objective. Target costing is a structured approach to determine the cost at which a proposed product, meeting the quality and functionality requirements, must be produced in order to generate the desired profits. It subtracts the desired profit margin from the company’s selling price to establish the manufacturing cost of the product. Extensive literature review revealed that companies in automotive, electronics and process industries have reaped the benefits of target costing.The findings indicate that there is a significant and positive relationship between the availability of the regulatory requirements and the availability of technological requirements, on the competitive advantages parameters, in the (ISDFs). The entropy maximum general method has been used to analyze the questionnaire survey. This research provides value added in accounting literature given the scarcity of works dealing with the relationship between the application and use of strategic information and competitive advance indicators in Iraq soft drinks firms. The findings reveal that there is a significant positive relationship between Management Accounting Techniques and competitive advantage factors. The authors conclude that Management Accounting Techniques practices significantly influence the intensity of competitive advantage factors in Iraqi soft drink firms.