STRATEGIC COSTING AND FIRM SURVIVAL OF FIRMS TO BE RECOGNIZED IN GOOD MANUFACTURING PRACTICE (GMP): MEDIATING EFFECTS OF RESOURCES ALLOCATION AND COST EFFICIENCY

Abstract

This research aims at examining the effects of strategic costing on firm survival of firms to be recognized in good manufacturing practice (GMP) in Thailand through mediators of resources allocation and cost efficiency. In this research, 104 firms to be GMP in Thailand are the samples of
the research. In order to investigate the research relationship, structural equation model (SEM) as a statistical method is employed. Based on the results of the study, (1) strategic costing has a positive effect on resources allocation, cost efficiency, and firm survival, (2) resources allocation has a positively influenced to cost efficiency and firm survival, (3) cost efficiency positively affects firm survival. Moreover, resources allocation and cost efficiency are a mediator of the strategic costing-firm survival relationships. According to the research results, Strategic costing, resource allocation, and cost efficiency can create firm survival in the current situation. The organization's executives should use cost data as a guideline for resource allocation, planning, controlling resource utilization to achieve cost efficiency and enable the firm to survive in a highly competitive environment and the rapid changes that are taking place today