The Relationship between Target Costing and Competitive Advantage of Jordanian Private Universities

Waleed Mjalli Al-Awawdeh, Jamal Adel Al-Sharairi

Abstract


The study explored the relationship between target costing and competitiveness at Jordanian Private Universities.
The research question regarding target costing focused on leadership of target selling price, customer needs,
degree of developing a team work, cost of the product life cycle, stage of product design and value chain
development. A questionnaire was used to elicit data. Two scales were used to measure the estimates by financial
managers, directors of planning and quality, and heads of accounting departments in the universities. The sample
size was 50 subjects, and response rate was 80%. Findings of the study indicated that: universities have a
medium target costing dimensions of (3.48); the dimension of target selling price leadership was the highest and
reducing the life cycle of university specialization was the lowest; universities enjoy a medium competitive
advantages with a score of (3.46); and expansion in specializations was the highest in performance and
university’s specializations cost was the weakest. Results showed a significant difference in the strength of links
between the dimensions of the target costing technique and the dimensions of strengthening the competitive
advantage.
Recommendations suggested that universities in general and Jordanian Private Universities in particular, have to
activate the dimensions of target costing technique to achieve the competitive advantages and promote it.


Full Text: PDF DOI: 10.5539/ijbm.v7n8p123

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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