CUSTOMER ACCOUNTING AND COMPETITOR ACCOUNTING AS A STRATEGIC APPROACH FOR GOAL ACHIEVEMENT: EVIDENCE FROM AUTO PARTS MANUFACTURING COMPANIES IN THAILAND
Keywords:
Competitor Accounting, Customer Accounting, Customer Relationship, Competitive Advantage, Goal AchievementAbstract
This study investigates the influences of customer accounting and competitor accounting on goal achievement through customer relationship and competitive advantage as mediating of the study. Customer accounting includes customer profitability analysis, lifetime customer profitability analysis and valuations of customers as assets and competitor accounting consist of competitor cost assessment, competitive position monitoring and competitive performance appraisal. In this study, 136 auto parts manufacturing companies in Thailand are the samples of the study. The results reveal that lifetime customer profitability analysis has a significant positive influence on customer relationship. Also, customer profitability analysis, valuations of customers as assets, competitive position monitoring and competitive performance appraisal have a significant positive influence on competitive advantage. Moreover, customer relationship has a significant positive influence on competitive advantage. Likewise, customer relationship and competitive advantage have a significant positive influence on goal achievement. This study enables firms’ executives to be aware of how to implement, apply and utilize customer accounting and competitor accounting for customer relationship, initialing competitive advantage, and goal achievement in the highly and rigorously competitive markets and environments through the valuable allocation of their resources, assets and strategies to customer accounting and competitor accounting.
References
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Al-Mawali, H., & Lam, T. (2016). Customer Accounting and Environmental Uncertainty: Sequential Explanatory Study, International Review of Management and Marketing, 6(3), 532-543.
Alsoboa, S. S., & Aldehayyat, J. S. (2013). The Impact of Competitive Business Strategies on Managerial Accounting Techniques: A Study of Jordanian Public Industrial Companies. International Journal of management, 30(2), 545-555.
Alsoboa, S. S., & Alalaya, M. M. (2015). Practices of Competitor Accounting and its Influence on the Competitive Advantages: An Empirical Study in Jordanian Manufacturing Companies. Global Journal of Management and Business Research, 15 (3), 12-23.
Barney, J. B. (2002). Gaining and Sustaining Competitive Advantage 2nd ed, NJ: Prentice-Hall.
Berger, P. D., Bolton, R. N., Bowman, D., Briggs, E., Kumar, V., Parasuraman, A., & Terry, C. (2002). Marketing Actions and The Value of Customer Asset: A Framework for Customer Asset Management. Journal of Service Research, 5, 39–54.
BPP Professional Education, (2005). CIMA Management Accounting: Business Strategy, London: BPP Publishers.
Cadez, S., & Guilding, C. (2007). Benchmarking the Incidence of Strategic Management Accounting in Slovenia. Journal of Accounting and Organizational Change, 3(2), 126-146.
Cadez, S., & Guilding, C. (2008). An Exploratory Investigation of An Integrated Contingency Model of Strategic Management Accounting. Accounting, Organizations and Society, 33, 836–863.
Cadez, S., & Guilding, C. (2012). Strategy, Strategic Management Accounting and Performance: A Configurational Analysis. Industrial Management & Data Systems, 112(3), 484-501.
Chahal, H., & Kumari, N. (2011). Evaluating Customer Relationship Dynamics in Healthcare Sector through Indoor Patients’ Judgment. Management Research Review, 34(6), 626–648.
Chan, S. C. H., & Mak, W. (2012). Benevolent Leadership and Follower Performance: The Mediating Role of Leader-Member Exchange (LMX). Asia-Pacific Journal of Management, 29, 285-301.
Chen, K. (2014). Improving Importance Performance Analysis: The Role of The Zone of Tolerance and Competitor Performance: The Case of Taiwan’s Hot Spring Hotels. Tourism Management, 40, 260-272.
Chuang, S., & Huang, S. (2015). Effects of Business Greening and Green IT Capital on Business Competitiveness. Journal of Business Ethics, 128: 221–231.
Churchill, G. A., Jr. (1979). A Paradigm for Developing Better Measures of Marketing Constructs, Journal of Marketing Research, 16: 64–73.
Drury, C. (2008). Management and Cost Accounting. London: Cengage Learning.
Fong, C. C. F., & Wong, J. (2012). Competitor Analysis and Accounting of Social Networking Site Service Companies In China. Journal of Technology Management in China, 7(3), 243-254.
Foster, G., & Gupta, M. (1994). Marketing, Cost Management and Management Accounting. Journal of Management Accounting Research, 6, 43-77.
Guilding, C., & McManus, L. (2002). The Incidence, Perceived Merit and Antecedents of Customer Accounting: An Exploratory Note. Accounting, Organizations and Society, 27, 45-59.
Gupta, S., & Lehmann, D. R. (2003). Customers as Assets. Journal of Interactive Marketing, 17(1), 9-24.
Hair, J.F. Jr., Black W.C., Babin B.J., Anderson R.E., & Tatham R.L. (2010). Multivariate Data Analysis 6th ed. New Jersey: Pearson Education International.
Hassan, N., Muhammad, N., & Z. Ismail, (2011). Strategic Management Accounting Practice in Malaysia: Case of manufacturing sector. Journal of Finance, Accounting and Management, 2(2): 23-38.
Heinen, C., & Hoffjan, A. (2005). The Strategic Relevance of Competitor Cost Assessment: An Empirical Study of Competitor Accounting. Journal of Management Accounting Research, 3(1): 17-21.
Hesford, J.W. (2008). An Empirical Investigation of Accounting Information Use in Competitive Intelligence. Journal of Competitive Intelligence and Management, 4(3): 17-49.
Ho, J.L., Wu, A., & Wu, S.Y. (2014), Performance Measures, Consensus on Strategy Implementation, and Performance: Evidence from the Operational-Level of Organizations. Accounting, Organizations and Society, 39(1), 38-58.
Holm, M., Kumar, V., & Plenborg, T. (2016). An Investigation of Customer Accounting Systems as a Source of Sustainable Competitive Advantage. Advances in Accounting, incorporating Advances in International Accounting, 32, 18–30.
Holm, M., Kumar, V., & Rohde, C. (2012). Measuring Customer Profitability in Complex Environments: An Interdisciplinary Contingency Framework. Journal of the Academy of Marketing Science, 40, 387-401.
Inglis, R.M. (2008). Exploring Accounting and Market Orientation: An Interfunctional Case Study. Journal of Marketing Management, 24(7–8), 687–710.
Kırlı, M., & Gümüş, 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
Kumar, V. (2007). Customer Lifetime Value - The Path to Profitability. Foundations and Trends in Marketing, 2(1), 1-96.
Kuo, T. (2011). The Antecedents of Customer Relationship in E-Banking Industry. Journal of Computer Information Systems, 51(3), 57–66.
Lee, Y.K., Kim, S.H., Seo, M.K., & Hight, S.K. (2015). Market Orientation and Business Performance: Evidence From Franchising Industry. International Journal of Hospitality Management, 44, 28-37.
Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A., & Aykol, B. (2015). Dynamic Capabilities Driving an Eco-Based Advantage and Performance in Global Hotel Chains: The Moderating Effect of International Strategy. Tourism Management, 50, 268–280.
Li, J. J., Zhou, K. Z., & Shao, A. T. (2009). Competitive Position, Managerial Ties and Profitability of Foreign Firms in China: An Interactive Perspective. Journal of International Business Studies, 40, 339-352.
Lind, J., & Strömsten, T. (2006). When Do Firms Use Different Types of Customer Accounting? Journal of Business Research, 59(12), 1257-1266.
Mark, T., Niraj, R., & Dawar, N. (2012). Uncovering Customer Profitability Segments for Business Customers. Journal of Business-to-Business Marketing, 19, 1–32.
Noone, B., & Griffin, P. (1999). Managing the Long-Term Profit Yield from Market Segments in a Hotel Environment: A Case Study on the Implementation of Customer Profitability Analysis. International Journal of Hospitality Management, 18, 111–128.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory. New York, NY: McGraw-Hill.
Persson, A. (2011). The Management of Customer Relationship as Assets in The Retail Banking Sector. Journal of Strategic Marketing, 19(1), 105–119.
Pfeifer, P. E., Haskins, M. E., & Conroy, R. M. (2005). Customer Lifetime Value, Customer Profitability, and the Treatment of Acquisition Spending, Journal of Managerial Issues, 17(1), 11-25.
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 Humanities and Social Sciences, 37(4), 35-55.
Raaij, E. M. V., Vernooij, M. J. A., & Triest, S. V. (2003). The Implementation of Customer Profitability Analysis: A Case Study. Industrial Marketing Management, 32, 573–583.
Radas, S., & Matovac, V. A. (2006). Competitive Position and Its Relationship to Innovation. In L. Galetic (Ed.), Proceedings of the 3rd international conference on an enterprise odyssey: Integration and distintegration (pp. 1378-1391). Zagreb, Croatia: n.p.
Rahman, S.A., Amran, A., Ahmad, NH., & Taghizadeh, SK. (2015). Supporting Entrepreneurial Business Success at the Base of Pyramid through Entrepreneurial Competencies. Management Decision, 53(6): 1203–1223.
Ryals, L. (2008). Determining the Indirect Value of a Customer. Journal of Marketing Management, 24(7–8), 847–864.
Salojarvi, H., Rutala, P., Sainio, L., & Saarenketo, S. (2015). Synergistic Effect of Technology and Customer Relationship Orientations: Consequences for Market Performance. Journal of Business and Industrial Marketing, 30(5), 511–520.
Sherrell, D. L., & Collier, J. E. (2008). Managing Appreciating and Depreciating Customer Assets. Marketing Management Journal, 18(1), 39–53.
The Chartered Institute of Management Accountants. (2008). Management Accounting Risk and Control Strategy, P3, Post Exam Guide November 2008.
Tsao, W. (2014). Enhancing Competitive Advantages: The Contribution of Mediator and Moderator on Stickiness in the LINE. Journal of Retailing and Consumer Services, 21, 933-941.
Ussahawanitchakit, P. (2017). Customer Accounting as a Valuable Approach of Strategic Management Accounting: Evidence from Hotel Businesses in Thailand, Journal of Business Administration, 40(154), 37-57.
Wang, C. (2014). How Relational Capital Mediates the Effect of Corporate Reputation on Competitive Advantage: Evidence from Taiwan High-Tech Industry. Technological Forecasting and Social Change, 82, 167-176.
Woodruff, R. B. (1997). Customer Value: The Next Source for Competitive Advantage, Journal of the Academy of Marketing Science, 25(2), 139-153.
Yonggui, W., & Hing-po, Lo. (2004). Customer-Focused Performance and its key Resource-Based Determinations: An Integrated Framework, Customer Relationship, 14, 34–59.
Ahmad, N.H., Ramayah T, Wilson, C., & Kummerow, L. (2010). Is Entrepreneurial Competency and Business Success Relationship Contingent upon Business Environment? International Journal of Entrepreneurial Behavior and Research 16(3), 182–203.
Al-Mawali, H., & Lam, T. (2016). Customer Accounting and Environmental Uncertainty: Sequential Explanatory Study, International Review of Management and Marketing, 6(3), 532-543.
Alsoboa, S. S., & Aldehayyat, J. S. (2013). The Impact of Competitive Business Strategies on Managerial Accounting Techniques: A Study of Jordanian Public Industrial Companies. International Journal of management, 30(2), 545-555.
Alsoboa, S. S., & Alalaya, M. M. (2015). Practices of Competitor Accounting and its Influence on the Competitive Advantages: An Empirical Study in Jordanian Manufacturing Companies. Global Journal of Management and Business Research, 15 (3), 12-23.
Barney, J. B. (2002). Gaining and Sustaining Competitive Advantage 2nd ed, NJ: Prentice-Hall.
Berger, P. D., Bolton, R. N., Bowman, D., Briggs, E., Kumar, V., Parasuraman, A., & Terry, C. (2002). Marketing Actions and The Value of Customer Asset: A Framework for Customer Asset Management. Journal of Service Research, 5, 39–54.
BPP Professional Education, (2005). CIMA Management Accounting: Business Strategy, London: BPP Publishers.
Cadez, S., & Guilding, C. (2007). Benchmarking the Incidence of Strategic Management Accounting in Slovenia. Journal of Accounting and Organizational Change, 3(2), 126-146.
Cadez, S., & Guilding, C. (2008). An Exploratory Investigation of An Integrated Contingency Model of Strategic Management Accounting. Accounting, Organizations and Society, 33, 836–863.
Cadez, S., & Guilding, C. (2012). Strategy, Strategic Management Accounting and Performance: A Configurational Analysis. Industrial Management & Data Systems, 112(3), 484-501.
Chahal, H., & Kumari, N. (2011). Evaluating Customer Relationship Dynamics in Healthcare Sector through Indoor Patients’ Judgment. Management Research Review, 34(6), 626–648.
Chan, S. C. H., & Mak, W. (2012). Benevolent Leadership and Follower Performance: The Mediating Role of Leader-Member Exchange (LMX). Asia-Pacific Journal of Management, 29, 285-301.
Chen, K. (2014). Improving Importance Performance Analysis: The Role of The Zone of Tolerance and Competitor Performance: The Case of Taiwan’s Hot Spring Hotels. Tourism Management, 40, 260-272.
Chuang, S., & Huang, S. (2015). Effects of Business Greening and Green IT Capital on Business Competitiveness. Journal of Business Ethics, 128: 221–231.
Churchill, G. A., Jr. (1979). A Paradigm for Developing Better Measures of Marketing Constructs, Journal of Marketing Research, 16: 64–73.
Drury, C. (2008). Management and Cost Accounting. London: Cengage Learning.
Fong, C. C. F., & Wong, J. (2012). Competitor Analysis and Accounting of Social Networking Site Service Companies In China. Journal of Technology Management in China, 7(3), 243-254.
Foster, G., & Gupta, M. (1994). Marketing, Cost Management and Management Accounting. Journal of Management Accounting Research, 6, 43-77.
Guilding, C., & McManus, L. (2002). The Incidence, Perceived Merit and Antecedents of Customer Accounting: An Exploratory Note. Accounting, Organizations and Society, 27, 45-59.
Gupta, S., & Lehmann, D. R. (2003). Customers as Assets. Journal of Interactive Marketing, 17(1), 9-24.
Hair, J.F. Jr., Black W.C., Babin B.J., Anderson R.E., & Tatham R.L. (2010). Multivariate Data Analysis 6th ed. New Jersey: Pearson Education International.
Hassan, N., Muhammad, N., & Z. Ismail, (2011). Strategic Management Accounting Practice in Malaysia: Case of manufacturing sector. Journal of Finance, Accounting and Management, 2(2): 23-38.
Heinen, C., & Hoffjan, A. (2005). The Strategic Relevance of Competitor Cost Assessment: An Empirical Study of Competitor Accounting. Journal of Management Accounting Research, 3(1): 17-21.
Hesford, J.W. (2008). An Empirical Investigation of Accounting Information Use in Competitive Intelligence. Journal of Competitive Intelligence and Management, 4(3): 17-49.
Ho, J.L., Wu, A., & Wu, S.Y. (2014), Performance Measures, Consensus on Strategy Implementation, and Performance: Evidence from the Operational-Level of Organizations. Accounting, Organizations and Society, 39(1), 38-58.
Holm, M., Kumar, V., & Plenborg, T. (2016). An Investigation of Customer Accounting Systems as a Source of Sustainable Competitive Advantage. Advances in Accounting, incorporating Advances in International Accounting, 32, 18–30.
Holm, M., Kumar, V., & Rohde, C. (2012). Measuring Customer Profitability in Complex Environments: An Interdisciplinary Contingency Framework. Journal of the Academy of Marketing Science, 40, 387-401.
Inglis, R.M. (2008). Exploring Accounting and Market Orientation: An Interfunctional Case Study. Journal of Marketing Management, 24(7–8), 687–710.
Kırlı, M., & Gümüş, 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
Kumar, V. (2007). Customer Lifetime Value - The Path to Profitability. Foundations and Trends in Marketing, 2(1), 1-96.
Kuo, T. (2011). The Antecedents of Customer Relationship in E-Banking Industry. Journal of Computer Information Systems, 51(3), 57–66.
Lee, Y.K., Kim, S.H., Seo, M.K., & Hight, S.K. (2015). Market Orientation and Business Performance: Evidence From Franchising Industry. International Journal of Hospitality Management, 44, 28-37.
Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A., & Aykol, B. (2015). Dynamic Capabilities Driving an Eco-Based Advantage and Performance in Global Hotel Chains: The Moderating Effect of International Strategy. Tourism Management, 50, 268–280.
Li, J. J., Zhou, K. Z., & Shao, A. T. (2009). Competitive Position, Managerial Ties and Profitability of Foreign Firms in China: An Interactive Perspective. Journal of International Business Studies, 40, 339-352.
Lind, J., & Strömsten, T. (2006). When Do Firms Use Different Types of Customer Accounting? Journal of Business Research, 59(12), 1257-1266.
Mark, T., Niraj, R., & Dawar, N. (2012). Uncovering Customer Profitability Segments for Business Customers. Journal of Business-to-Business Marketing, 19, 1–32.
Noone, B., & Griffin, P. (1999). Managing the Long-Term Profit Yield from Market Segments in a Hotel Environment: A Case Study on the Implementation of Customer Profitability Analysis. International Journal of Hospitality Management, 18, 111–128.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory. New York, NY: McGraw-Hill.
Persson, A. (2011). The Management of Customer Relationship as Assets in The Retail Banking Sector. Journal of Strategic Marketing, 19(1), 105–119.
Pfeifer, P. E., Haskins, M. E., & Conroy, R. M. (2005). Customer Lifetime Value, Customer Profitability, and the Treatment of Acquisition Spending, Journal of Managerial Issues, 17(1), 11-25.
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 Humanities and Social Sciences, 37(4), 35-55.
Raaij, E. M. V., Vernooij, M. J. A., & Triest, S. V. (2003). The Implementation of Customer Profitability Analysis: A Case Study. Industrial Marketing Management, 32, 573–583.
Radas, S., & Matovac, V. A. (2006). Competitive Position and Its Relationship to Innovation. In L. Galetic (Ed.), Proceedings of the 3rd international conference on an enterprise odyssey: Integration and distintegration (pp. 1378-1391). Zagreb, Croatia: n.p.
Rahman, S.A., Amran, A., Ahmad, NH., & Taghizadeh, SK. (2015). Supporting Entrepreneurial Business Success at the Base of Pyramid through Entrepreneurial Competencies. Management Decision, 53(6): 1203–1223.
Ryals, L. (2008). Determining the Indirect Value of a Customer. Journal of Marketing Management, 24(7–8), 847–864.
Salojarvi, H., Rutala, P., Sainio, L., & Saarenketo, S. (2015). Synergistic Effect of Technology and Customer Relationship Orientations: Consequences for Market Performance. Journal of Business and Industrial Marketing, 30(5), 511–520.
Sherrell, D. L., & Collier, J. E. (2008). Managing Appreciating and Depreciating Customer Assets. Marketing Management Journal, 18(1), 39–53.
The Chartered Institute of Management Accountants. (2008). Management Accounting Risk and Control Strategy, P3, Post Exam Guide November 2008.
Tsao, W. (2014). Enhancing Competitive Advantages: The Contribution of Mediator and Moderator on Stickiness in the LINE. Journal of Retailing and Consumer Services, 21, 933-941.
Ussahawanitchakit, P. (2017). Customer Accounting as a Valuable Approach of Strategic Management Accounting: Evidence from Hotel Businesses in Thailand, Journal of Business Administration, 40(154), 37-57.
Wang, C. (2014). How Relational Capital Mediates the Effect of Corporate Reputation on Competitive Advantage: Evidence from Taiwan High-Tech Industry. Technological Forecasting and Social Change, 82, 167-176.
Woodruff, R. B. (1997). Customer Value: The Next Source for Competitive Advantage, Journal of the Academy of Marketing Science, 25(2), 139-153.
Yonggui, W., & Hing-po, Lo. (2004). Customer-Focused Performance and its key Resource-Based Determinations: An Integrated Framework, Customer Relationship, 14, 34–59.
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Published
2019-07-24
How to Cite
Thapayom, A. (2019). CUSTOMER ACCOUNTING AND COMPETITOR ACCOUNTING AS A STRATEGIC APPROACH FOR GOAL ACHIEVEMENT: EVIDENCE FROM AUTO PARTS MANUFACTURING COMPANIES IN THAILAND. Modern Management Journal, 17(1), 13–27. Retrieved from https://so04.tci-thaijo.org/index.php/stou-sms-pr/article/view/171346
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