Contingencies influencing the adoption of product life cycle cost analysis and its direct impact on the financial performance: an empirical investigation

Amr Mohamed Said Abdel-Halim

Accounting Research Journal, 2026, vol. 39, issue 4-5, 618-644

Abstract: PurposeThis study aims to investigate the contingency relationships between three organizational contexts, namely, product customization, sustainable competitive advantage and environmentally clean products, and the adoption of product life cycle cost analysis (LCCA), along with its direct impact on financial performance.Design/methodology/approachA cross-sectional self-administered survey was conducted with a sample of 73 manufacturing companies. Two regression models were developed to examine how specific contingent factors influence LCCA adoption and evaluate the direct impact of LCCA adoption on financial performance.FindingsThe empirical results indicate that product customization, sustainable competitive advantage and environmentally clean products are significantly and positively related to product LCCA adoption and that product LCCA adoption is directly associated with enhanced financial performance.Research limitations/implicationsThe results of this study are based on data collected from a single country, which may limit the generalizability of the findings to organizations in other cultural contexts. Nevertheless, this study offers meaningful contributions to the theoretical development of the LCCA approach by identifying the situational factors that impact its adoption and practical effectiveness.Practical implicationsThe findings of this study are expected to provide practitioners with valuable insights into the contextual factors that make LCCA adoption the most appropriate. These insights can support managers optimize cost management practices and enhance decision-making quality.Originality/valueThis study addresses a crucial gap in the literature by offering new insights into the determinants of LCCA adoption and providing empirical evidence on the positive effect of LCCA on financial performance.

Keywords: Product life cycle cost analysis (LCCA); Product customization; Sustainable competitive advantage; Environmentally clean products; Financial performance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-09-2025-0332

DOI: 10.1108/ARJ-09-2025-0332

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