Using Strategic Cost Management on Performance of Small and Medium Enterprises (SMEs) in Lampang Province
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Abstract
This study investigated the relationship between the adoption of strategic cost management practices and the operational performance of Small and Medium Enterprises (SMEs) in Lampang Province. Data were collected from 144 SME entrepreneurs in the province and analyzed using descriptive statistics and multiple regression analysis. The findings reveal that Activity-Based Costing (ABC) exerted the strongest statistically significant positive effect on firm performance (β = 0.45), followed by Just-in-Time (JIT) manufacturing
(β = 0.32). Lean manufacturing also demonstrated a statistically significant positive effect on performance
(β = 0.28). Cost Management by Participation, while approaching the conventional threshold of statistical significance (β = 0.15), did not reach it; nevertheless, this result suggests that participatory cost management within organizations may play a supportive role in enhancing operational efficiency over the longer term.
These findings indicate that SMEs should prioritize the adoption of Lean manufacturing principles to improve efficiency, eliminate waste, and build competitive advantage. Furthermore, relevant public and private sector agencies may draw on this evidence to inform the design of policies and support programs that encourage entrepreneurs to implement cost management strategies appropriate to their specific business contexts — both in Lampang Province and across other regions — thereby contributing to the sustainable development of SMEs and the broader local economy.
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The article must be considered and accepted for publication by the editorial board of the Faculty of Management Science, Lampang Rajabhat University. The articles have been reviewed by a peer (peer review) and the author must update according to the suggestion if available before publication. Articles that are not considered the editorial team will inform the results of the consideration but will not send the original to the author.
JMMS is the Faculty of Management Science journal, Lampang Rajabhat University. Jmms published both print and online editions. We allow the use of articles for academic use under the scope of copyright law.
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