Exploring the impact of customer profitability analysis on firms’ strategic performance | ||
| مجلة البØوث الإدارية | ||
| Volume 42, Issue 3, July 2024 PDF (854.53 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jso.2024.292840.1307 | ||
| Author | ||
| رولا نوار* | ||
| كلية التجارة - جامعة القاهرة | ||
| Abstract | ||
| This research aims to identify the relationship between the Customer Profitability Analysis (CPA), as a strategic management accounting technique (SMAT), and firms’ strategic performance measured using the Balanced Scorecard (BSC). In addition, it aims to explore contingency factors that may influence firms’ application of CPA. To achieve these two objectives, a survey was conducted in the first quarter of 2024, to collect data from a sample of 90 Egyptian firms operating in divergent industry sectors. Regression analysis was used to analyze collected data covering the research variables main variables; CPA proxied by three indicators (valuation of customers as an asset, customer profitability during short term, and customer profitability analysis during future periods), and firms’ strategic performance, in addition to three contingency variables: firm size, strategy, and type of activity. In light of prior literature addressing the research variables, the research's hypotheses were developed. The first hypothesis addresses the significant positive relationship between applying CPA and firms’ strategic performance. The second hypothesis indicates that the application of CPA, as a strategic management accounting technique, is influenced by a set of contingency variables. Findings showed a significant relationship between firms’ application of CPA, as a strategic management accounting technique, and firms’ strategic performance as measured through the balanced scorecard. Moreover, findings revealed the insignificance of the relationship between any of the three contingency variables and application of CPA. | ||
| Keywords | ||
| strategic; performance; customer; profitability; analysis | ||
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