Abstract:
To provide a better understanding of modern strategies for cost
management and use of contemporary costing techniques in a developing
country, the current study aimed to examine effect of integration between
the Target Costing and Value Engineering techniques and the role of
competitive strategy, to enhance performance of Sudanese manufacturing
firms .The researcher constructed the study hypotheses depending on the
previous studies, and the contingency theory. The descriptive analytical
approach was adopted in this study. The main tool of the study was a
questionnaire it was used to collect data from the sample of (165)
employees of the senior management of these companies, (73.9%) of the
total distributed questionnaires were collected and analyzed using
statistics’ software package (SPSS) to identify the common factors that
explain the variation in study variables and to validate measures of the
study variables. And statistical software (Amos) to explore the
relationships among the study variables. The results of the study indicated
that integration of Target costing and value engineering is found to be
significant in relation to operational performance. However Sudanese
manufacturing firms cannot achieve financial performance from such
integration the positive role of applying value engineering to the
operational performance of manufacturing firm has been revealed through
the moderating role of the comparative strategy.
The study recommends the managers should pay more attention to
dimensions related to integration of target costing and value engineering
that have achieved excellence for their firms. In addition, manufacturing
firms should be more proactive to improve financial performance by
thinking of scale, employment, efficiency and leverage.
