Proposed Drivers Analysis Framework as an Ex-Ante Control Approach for Conducting Strategic Orientation of Cost Management: With A Case Study

Naiem, Mahmoud Hussien Mohamed; El-Helbawy, Said Mahmoud; El-Shishini, Hatem Mohamed; Farg, Lotfy El-Refaay

doi:10.21608/abj.2025.432629

Proposed Drivers Analysis Framework as an Ex-Ante Control Approach for Conducting Strategic Orientation of Cost Management: With A Case Study

المؤلفون

¹ Demonstrator of Accounting, Accounting Department, Faculty of Commerce, Tanta University, Egypt

² Professor of Cost and Managerial Accounting، Faculty of Commerce، Tanta University ، Egypt

³ Professor of Cost Accounting، Chairman of Accounting Department، Faculty of Commerce،Tanta University ، Egypt

⁴ Associate Professor of Accounting, Faculty of Commerce, Tanta University - Egypt

10.21608/abj.2025.432629

المستخلص

Title: Proposed Drivers Analysis Framework as an Ex-Ante Control Approach for Conducting Strategic Orientation of Cost Management: With A Case Study
Background: Due to competitive pressures, a lot of changes should be made to cope with rapid developments and requirements of modern environment that should be related to firm strategy to create competitive advantages and achieve its long-term objectives. Therefore, it is necessary for firms to have a strategic orientation in their cost management practices and achieving better Ex-ante control over value-creation and cost throughout the Total Value Chain (TVC), to continually improve performance toward creating the maximum value for the customer at the lowest possible cost. Drivers Analysis can be recognized as a valuable and effective Strategic Cost Management (SCM) technique, it is also considered among the important Ex-ante control approaches, through controlling their drivers. It provides a distinct approach to study the trade-off between value-creation represented by value drivers and cost represented by cost drivers for the purpose of selecting and providing information on best drivers.
Purpose: The research aims to present a proposed Drivers Analysis framework for the purpose of conducting strategic orientation of cost management.
Design/Methodology/approach/method/tools: A Problem-Solving approach was adopted. Accordingly, the Constructive Approach was used to develop the proposed framework that serves the research purpose. A Case Study was caried out as a research method using AHP tool on National Bank of Egypt branches in Gharbia to clarify the applicability of the proposed framework based on a set of proposed criteria for applying Drivers Analysis. In addition, the researchers relied on interviews, observations, documentary analysis and a questionnaire to collect the necessary data for the case.
Findings: Some recommendations have been suggested to improve the utilization of the NBE’s resources in a way that maximizes the value of its clients at a lower cost and to guide and improve the strategic performance in NBE toward achieving sustainable competitive advantages and enhancing its competitive position.
Originality/Value: This research provides substantial insights into the importance of drivers` analysis and how to apply it in a new and better way by dealing with the area of value-creation to achieve competitive advantages and conducting the strategic orientation of cost management. In addition to Cost Drivers Analysis, the research considered the value drivers analysis based on the Critical Success Factors (CSFs) to select best value drivers and best cost drivers using AHP.

الكلمات الرئيسية