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Target Costing, Business Model Innovation, and Firm Performance: An Empirical Analysis of Chinese Firms
Author(s) -
Huang HaoChen,
Lai MeiChi,
Kao MengChun,
Chen YiChun
Publication year - 2012
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1229
Subject(s) - activity based costing , business , sample (material) , industrial organization , business model , market orientation , product (mathematics) , diversity (politics) , marketing , product innovation , target costing , chemistry , geometry , mathematics , chromatography , sociology , anthropology
Market orientation theory was used to relate the implementation of target costing systems and business model innovation to firm performance using a sample of 189 electronics and information industry manufacturers in China. As expected, the implementation of target costing was positively associated with both business model innovations and firm performance. Further, the diversity of product development teams was also crucial. It positively moderated the association between target costing and business model innovation. Finally, the business model innovation was positively related to firm performance. Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.