This paper aims to explore the implementation of target costing (TC) in a real estate development company in the Kingdom of Saudi Arabia. It focuses on the interplay between human and nonhuman actors in a highly regulated environment, contrasting with some existing studies that often overlook the detailed interactions between actors and the mechanisms behind the implementation process.
Drawing on a qualitative research approach and the Actor-Network Theory (ANT) framework, this study provides a detailed examination of the roles various actors (i.e. human and nonhuman, such as project managers, financial systems, governmental policies and market regulations) play in ensuring the alignment of TC with organizational goals.
The findings provide deeper insights into the complex implementation of TC in the real estate development sector, emphasizing that the interactions among various actors play a central role in shaping the implementation outcomes. We highlight that the TC implementation involves a complex network of actors whose collaboration significantly influences the success of the cost management approach.
While much of the existing literature focuses on the benefits and critical success factors of implementing TC, this study provides actionable insights for real estate firms, emphasizing the need to identify and manage key actor relationships to navigate regulatory constraints and enhance cost control practices.
This study contributes to the literature by illustrating how ANT can provide a clearer understanding of the mechanisms and actor-networks involved in implementing TC in a highly regulated environment. It ultimately shows that successful TC implementation depends not only on internal strategies but also on navigating the dynamic relationships among diverse actors.
