| Abstract |
This study aims at investigating the influences of strategic cost management on firm profitability of instant foods and convenience foods businesses in Thailand through mediators of cost advantage, cost leadership, and cost efficiency. In this study, 193 instant foods and convenience foods businesses in Thailand are the samples of the study. To test the research relationships, structural equation model (SEM) as a statistical technique is employed. Based on the results of the study, (1) strategic cost management has a positive influence on cost advantage, cost leadership, and cost efficiency, (2) cost advantage is positively related to cost leadership and cost efficiency and (3) cost efficiency positively affects firm profitability. Additionally, only cost efficiency is a mediator of the strategic cost management-firm profitability relationships. According to the research results, strategic cost management becomes a valuable approach that helps firms gain sustainable competitive advantage and achieve superior performance. Thus, executives of firms need to allocate their resources, assets, competencies, and capabilities in order to develop and utilize strategic cost management successfully in the rigorous competitive markets and environments. |