Main Article Content

Sarinya Suphatranon
Kornchai Phornlaphatrachakorn
Karun Pratoom



                The main purpose of this research is to examine the effects of value chain costing capability on firm performance. Data were collected by using a questionnaire survey from 152 accounting managers from electronic and electrical appliance businesses in Thailand. Network theory is applied to explain the relationship between determined variables; and the ordinary least squares (OLS) regression analysis was used for hypothesis testing. It was found in the study that cost competitiveness influenced firm performance, especially on expenditure monitoring report; and cost reduction competency highly influenced cost competitiveness. As a result, managers should support the business operation by auditing the follow-up reports of expenditures and by improving competency for cost reduction in order to obtain competitive advantages and effective performance in the future.

Keyword:  value chain costing capability, cost competitiveness, firm performance




Download data is not yet available.

Article Details



Aaker, D. A., V. Kumar & Day G. S. (2001). Marketing Research. New York: John Wiley and Sons.
Aykan, E., & Aksoylu, S. (2013). Effects of competitive strategies and strategic management accounting techniques on perceived performance of businesses. Australian Journal of Business and Management Research, 3(7), 30.
Bachev, H. (2014). Integration of small-scale farmers in value chains in Bulgaria, with a case study on agrobusiness 88 Ltd., Skravena. IUP Journal of Supply Chain Management, 6(3), 39-61.
Boyle, D. M., DeZoort, F. T., & Hermanson, D. R. (2015). The effects of internal audit report type and reporting relationship on internal auditors' risk judgments. Accounting Horizons, 29(3), 695-718.
Briscoe, G., & Dainty, A. (2005). Construction supply chain integration: an elusive goal? Supply chain management: an international journal, 10(4), 319-326.
Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive advantage: the importance of organizational structure and value chain position. Research-Technology Management, 58(5), 53-60.
Cadez, S., & Guilding, C. (2008). An exploratory investigation of an integrated contingency model of strategic management accounting. Accounting, organizations and society, 33(7-8), 836-863.
Capelleras, J. L. and Rabetino, J. R. (2008). Individual Organizational and Environmental Determinants of New Firm Employment Growth: Evidence from Latin America. International Enterprise Management, 4(1), 79-99.
Chang, C. J., & Hwang, N. C. R. (2002). The effects of country and industry on implementing value chain cost analysis. The International Journal of Accounting, 37(1), 123-140.
Ciabuschi, F., Perna A. & Snehota I. (2012). Assembling resources when forming a new business. Journal of Business Research. 65, 220-229.
Ensign, P. C. (2001). Value chain analysis and competitive advantage: Assessing strategic linkages and interrelationships. Journal of General Management, 27(1): 18-42.
Fearne, A. & Martinez, M. G. (2012). Dimensions of sustainable value chains: implications for value chain analysis. Supply Chain Management: An International Journal, 17(6), 575-581.
Garrigos, J. A., Molina, B. D. M. & Molina, M. D. M. (2014). Positioning in the global value chain as a sustainable strategy: a case study in a mature industry. Administrative Sciences, 4, 155-172.
Grigore, A. M. (2013). The Cost strategical analysis and chain value for the Romanian book publishing industry. Romanian Journal of Marketing, (3), 55-60.
Hair, J. F. Jr., Black W. C., Babin B. J., Anderson R. E. & Tatham R.L. (2010). MultivaGriate data analysis. 6thed. New Jersey: Pearson Education International.
Herzog, N. V., Tonchia, S., & Polajnar, A. (2009). Linkages between manufacturing strategy, benchmarking, performance measurement and business process reengineering. Computers & Industrial Engineering, 57(3), 963-975.
Ho, T. C., Ahmad, N. H., & Ramayah, T. (2016). Competitive capabilities and business performance among manufacturing SMEs: Evidence from an emerging economy, Malaysia. Journal of Asia-Pacific Business, 17(1), 37-58.
Holweg, M., & Helo, P. (2014). Defining value chain architectures: Linking strategic value creation to operational supply chain design. International Journal of Production Economics, 147, 230-238.
Joglekar, N. and Le´vesque, M. (2013). The role of operations management across the entrepreneurial value chain. Production and Operations Management, 22(6), 1321-1335.
Kirli, M. & Gumus H. (2011). The implementation of strategic management accounting based on value chain analysis: Value chain accounting. International Journal of social sciences and humanity studies, 3(1), 307-321.
Kroes, J. R., & Ghosh, S. (2010). Outsourcing congruence with competitive priorities: Impact on supply chain and firm performance. Journal of operations management, 28(2), 124-143.
Li, C. Z., Hong, J., Xue, F., Shen, G. Q., Xu, X., and Mok, M. K. (2016). Schedule risks in prefabrication housing production in Hong Kong: a social network analysis. Journal of Cleaner Production, 134, 482-494.
Li, Lijie & Zhang. (2012). Organic combination of supply chain, value chain and activity-based costing. Journal of Business Venturing, 26(4), 489–503.
Lii, P., & Kuo, F. I. (2016). Innovation-oriented supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174, 142-155.
Li, S., Ragu-Nathan, B., Ragu-Nathan, T.S., & Rao, S.S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124.
Mao, Z., Zhang, S., & Li, X. (2017). Low carbon supply chain firm integration and firm performance in China. Journal of Cleaner Production, 153, 354-361.
Mu, L. & Cui, X. (2012). An experimental research on governance mechanisms for cost of value chain. Nankai Business Review International, 3(2), 199-218.
Noordin, R., Zainuddin, Y., Mail, R.& Sariman, N.K. (2015). Performance outcomes of strategic management accounting information usage in Malaysia: insights from electrical and electronics companies. Procedia Economics and Finance, 31, 13-25.
Parnell, J. A. (2011). Strategic capabilities, competitive strategy, and performance among retailers in Argentina, Peru and the United States. Management decision, 49(1), 139-155.
Peppard, J., & Rylander, A. (2006). From value chain to value network: Insights for mobile operators. European Management Journal, 24(2-3), 128-141.
Phornlaphatrachakorn, K. (2017). Competitor accounting and marketing performance: An empirical investigation of electronics and electrical appliance businesses in Thailand. University of the Thai Chamber of Commerce Journal, 37(4), 35-55.
Porter, M.E., (1985), Competitive Advantage: Creating and Sustaining Superior Performance, New York: The Free Press, 3.
Rosli, M. H., Said, J., & Mohd, F. (2014). Factors that influence the use of Strategic Management Accounting in Malaysian Government-Linked Companies (GLCs). Malaysian Accounting Review, 13(2), 23-46.
Swink, M., Narasimhan, R., & Kim, S. W. (2005). Manufacturing practices and strategy integration: effects on cost efficiency, flexibility, and market‐based performance. Decision Sciences, 36(3), 427-457.
Teeratansirikool, L., Siengthai, S., Badir, Y., & Charoenngam, C. (2013). Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management, 62(2), 168-184.
Ussahawanitchakit, P. (2017). Value chain costing, competitive advantage and firm success: Evidence from Thai auto parts manufacturing businesses. International Journal of Business Research, 22(3), 231-250.
Valanciene, L., & Gimzauskiene, E. (2007). Changing role of management accounting: Lithuanian Experience case studies. Engineering Economics, 55(5), 16-23.
Wangcharoendate, S. (2015). An increasing strategic cost management and organizational achievement from electronics parts businesses in Thailand. Journal of Thonburi University, 9(20), 9-23.
Won L., C., Kwon, I. W. G., & Severance, D. (2007). Relationship between supply chain performance and degree of linkage among supplier, internal integration, and customer. Supply chain management: an International journal, 12(6), 444-452.
World Economic Forum, 2017. The global competitiveness report 2016-2017 [Online]. Available from [accessed 2 January 2017].
Yamane, T. (1973). Statistics: An introductory analysis.
Yasin, F. M., Muhamad, R., & Sulaiman, N. A. (2016). Effectiveness of corporate governance mechanisms: A review of the literature. Asian Journal of Accounting Perspectives, 9(1), 30-54.
Zahra, S. A. (2007). New Product Innovation in Established Companies: Associations with Industry and Strategy Variables. Entrepreneurship Theory and Practice, 8, 47-69.