—Target Costing (TC) is not only seen to be related
to cost reduction. Instead, quality and functionality features, in
similar extent, should be seriously perceived. Dynamic
Capabilities (DCs) could affect organizational functions in
relation to these objectives. This paper aims to examine the TC
implementation and DCs in three Asian countries; Japan,
Thailand and Malaysia. The findings through the proposed
framework indicate that the DCs factors are a key to the right
balance across the crucial elements of TC: cost reduction,
quality, functionality, and lead time. The proposed framework
could be a conceptual link between DCs factors and a
successful implementation of TC.
—Target costing, dynamic capabilities, Asian
Normah Omar is with the Accounting Research Institute, Universiti
Teknologi MARA, Malaysia (e-mail: firstname.lastname@example.org).
Cite: Normah Omar, Suzana Sulaiman, Wee Shu Hui, Ibrahim Kamal Abdul Rahman, and Hussein H.
Hamood, "Target Costing Implementation and Organizational
Capabilities: An Empirical Evidence of Selected Asian
Countries," Journal of Economics, Business and Management vol. 3, no. 2, pp. 201-206, 2015.