The purpose of this study is to investigate the antecedent factors (e.g. costing system usage purpose and intensity) that influence competitive advantage (CA) in Omani organizations. This study also examines the mediating role of cost information usage in strategic decision-making, leveraging the breadth and depth of costing systems.
The conceptual framework is developed with the support of Locke and Latham Goal Setting Theory along with support from empirical evidence to propose a set of hypotheses that are tested using partial least squares structural equation modeling. Data was collected from a survey of 309 firms in Oman’s logistics and shipping industry.
The empirical results revealed that all suggested hypotheses are positive and significant, demonstrating that both the purpose and intensity of costing system usage positively impact CA directly and indirectly through the mediating effect of cost information used in strategic decision-making, and hence, all related hypotheses were accepted.
This study offers a novel contribution to accounting literature by empirically demonstrating how the purpose and intensity of costing systems jointly influence managerial decision-making to enhance CA. Focusing on a highly competitive industry such as logistics and shipping, this research reframes costing systems as strategic enablers rather than merely technical tools. The findings of this study extend existing theories on management control and performance by highlighting the configurational use of costing systems in driving organizational outcomes. These insights carry important implications for both scholars and practitioners seeking to understand the strategic value of costing systems in complex operational environments.
