Customer Profitability Analysis in decision-making–The roles of customer characteristics, cost structures, and strategizing

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

Purpose This study investigates the interplay between strategic goals and calculative practices, specifically Customer Profitability Analysis (CPA). Drawing on practice-based theories, the research aims to understand how managers strategize with CPA, including the balancing of financial and strategic objectives and the interplay of institutionalized practices with individual practitioners’ actions. Design The study uses a qualitative, revelatory, and exploratory case study approach at the sub-organizational level in a manufacturing company. The researchers compare CPA practices across six departments, guided by a phenomenological research design. Data collection methods include informal conversations, qualitative observations, written documentation, numerical evidence from the accounting system, and interviews. Findings The study offers four novel findings to the field. First, it highlights how managers employ procedural and interactive strategizing to reframe CPA practices. The sophistication of CPA practices increases with unevenly distributed customer volume, high customer-specific, controllable overhead, customer-to-customer interaction, and service complexity. Conversely, the sophistication of cost-focused CPA practices tends to decrease with diverse strategic goals. Additionally, CPA become more effective through the utilization of non-financial information, employee empowerment, localization, and strategic alignment. Second, CPA can be adapted through integrative strategizing where managers avoid using it as a financial benchmark for strategic initiatives. Third, accountants actively seek intermediary roles to incorporate arguments from strategy and marketing to balance strategic objectives–contrary to their portrayal as myopic guardians of profitability. Fourth, the localization of CPA practices to front-line employees compensates for a lack of sophisticated CPA practices. Future research Future research should, investigate the adaptation of calculative practices in different cultures, and industries. Exploring additional contextual factors such as uncertainty, management characteristics, and linguistic framing of practices would be beneficial. Examining the interactions in utilizing CPA practices between front-line staff and customers would shed light on their effectiveness. Lastly, investigating the role of consultants in diffusing such practices would offer valuable perspectives.

OriginalspracheEnglisch
Aufsatznummere0296974
ZeitschriftPLoS ONE
Jahrgang19
Ausgabenummer5
Anzahl der Seiten25
ISSN1932-6203
DOIs
PublikationsstatusErschienen - 05.2024

Bibliographische Notiz

Publisher Copyright:
© 2024 Lueg, Ilieva. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

DOI

Zuletzt angesehen

Forschende

  1. Lena Hampe

Publikationen

  1. Do high incomes reflect individual performance?
  2. Sound im Kunstunterricht
  3. Bats in a Farming Landscape Benefit from Linear Remnants and Unimproved Pastures
  4. Sozialberichterstattung
  5. Soziokultur
  6. Advanced Controlling - eine Ideenskizze
  7. Habitat specialization, distribution range size and body size drive extinction risk in carabid beetles
  8. Algorithmen? Nein, danke!
  9. Habitat continuity matters
  10. European welfare states constructing “Unaccompanied Minors”
  11. General Ne Win’s Legacy of Burmanization in Myanmar
  12. Anmerkung zu BVerwG, Urt. v. 2.3.2017 – 3 C 19/15
  13. Goethe e il mito in Faust II
  14. Conceptual frameworks and methods for advancing invasion ecology
  15. Collectivizing Convenience?
  16. Networking
  17. Governance approaches to address scale issues in biodiversity management – current situation and ways forward
  18. The roughness of neural networks. Jimi hendrix, holly herndon, GPT-3, timbre transfer and the promising failure aesthetics of musical AIs
  19. Effect of Zn addition on hot tearing behaviour of Mg-0.5Ca-xZn alloys
  20. Leading digital innovation in schools
  21. Where you search is what you get
  22. The effect of organic acids and alcohols on precipitation of phosphate using calcined seashell powder
  23. Dynamics of species diversity and composition of herbaceous vegetation in fenced and unfenced plots
  24. Best-Practice-Beispiel: Wie kann Mentoring in die neue Studienorganisation implementiert werden?
  25. Guided internet-based cognitive behavioral therapy for insomnia
  26. How to measure energy-efficiency of software