Title: Examining the impact of uncertainty on business performance via strategic cost management adoption and implementation: the case of agro-based industries in and around Punjab, India

Authors: Rashmi Aggarwal; Tanvi Verma; Arun Aggarwal; Vandana Sharma; Balamurugan Balusamy; Simon Grima

Addresses: Chitkara Business School Chitkara University, Punjab, India ' Chitkara Business School Chitkara University, Punjab, India ' Chitkara Business School Chitkara University, Punjab, India ' Computer Science Department CHRIST (Deemed to be University), Delhi-NCR, India ' Shiv Nadar University, Delhi-NCR, Gautam Budh Nagar, India ' Department of Insurance and Risk Management, Faculty of Economics, Management and Accountancy, University of Malta, Malta; Faculty of Business, Management and Economics, University of Latvia, Latvia

Abstract: Dynamic business environments require a change to survive. Strategic cost management (SCM) must re-conceive its future as new, improved, or reformed under opportunities and tough demands. Traditional cost management may not be adaptable to business turbulence. Increasing shareholder and customer demand, rapid information and technology improvements in manufacturing, and worldwide market rivalry with antiquated tools can be difficult. SCM goes beyond cost reduction and includes revenue generation and competitive advantage. This article examines the relationship between adopting and applying SCM approaches and company success in agro-based industrial businesses. Empirical survey data from agro-based industrial companies in Punjab were analysed using multivariate data analysis. According to contingency theory, size, technology, total productivity maintenance, strategy, and organisation culture are factors related to strategic cost management. All dependent factors, including control variable size, favourably affected SCM acceptance and utilisation, which has a pragmatic effect on agro-based businesses. SCM utilisation also mediated performance.

Keywords: technology; total productivity maintenance; organisational culture; strategic cost management; return on investment; return on sales; customer satisfaction; business performance; manufacturing industry; India.

DOI: 10.1504/IJBPM.2025.143647

International Journal of Business Performance Management, 2025 Vol.26 No.1, pp.104 - 129

Received: 12 Jul 2022
Accepted: 16 Apr 2023
Published online: 03 Jan 2025 *