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Does Pricing Strategy Increase the Competitive Advantage of Companies Implementing an ABC System?

Devie, and Kwistianus, Hendri and ANTONIA, AILEEN JESSICA and WIJAYA, ELIZABETH and Hatane, Saarce Elsye (2022) Does Pricing Strategy Increase the Competitive Advantage of Companies Implementing an ABC System? [UNSPECIFIED]

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      Abstract

      This study aims to investigate the extent to which pricing strategy creates an effective competitive advantage for companies implementing an activity-based costing (ABC) system in their production activities. The research data were obtained through a questionnaire-based survey of several manufacturing companies in Indonesia that implement ABC systems. This research used the Structural Equation Model with Partial Least Square statistical method. The results of this research indicate that those companies who apply an ABC system are capable of making their pricing strategy more effective and increasing their competitive advantage. The empirical results show that price competition is unavoidable among manufacturing industries. However, implementing an ABC system can increase manufacturing companies competitive advantage. Thus, the implementation of an ABC System employs pricing strategy as a determinant factor of competitive advantage. This research supports the results of previous studies that also concluded that there is a strong relationship between ABC systems and competitive advantage. In addition, this research found that pricing strategy can improve competitive advantage with implementation of an ABC System.

      Item Type: UNSPECIFIED
      Uncontrolled Keywords: Activity-based costing system; competitive advantage; pricing strategy
      Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
      Divisions: Faculty of Economic > Accounting Department
      Depositing User: Admin
      Date Deposited: 02 Jan 2023 22:27
      Last Modified: 03 Jan 2023 22:13
      URI: https://repository.petra.ac.id/id/eprint/19823

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