Assessing the Contribution of Product Life Cycle Cost Analysis, Customer Involvement, and Cost Management to the Competitive Advantage of Firms

Empirical evidence suggests that competitive advantage is of considerable importance to organizations as global competition, extensive changes in technology, and customer demands intensify. However, little work has been done in the management accounting arena to identify critical organizational strategies that might facilitate it. Following a literature review, this study assesses the extent to which product life cycle cost analysis, customer involvement, and cost management contribute to the competitive advantage of firms. The findings of this research show that life cycle cost analysis, customer involvement, and cost management enhance an organization's competitive advantage, consistent with the study's theoretical expectations. The provision of empirical evidence on the utility of these three variables to the promotion of competitive advantage underscores the need to conduct further research focusing on them in management accounting.