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Strategizing competitive edge in service operations: a model proposal for determining the unit costs through the activity-based cost accounting and the full-consistency method

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Abstract

Sustainable competitive advantage, a cornerstone of strategic management, encompasses a business's enduring capability to maintain long-term financial superiority over its competitors. The business should optimize its operations by reducing costs and improving efficiency to attain a sustainable competitive advantage. In the present study, the Activity-Based Costing (ABC) system was implemented to calculate the unit costs of a hotel operating in Turkey, and the expenses were allocated to the overnight costs using the Full-Consistency Method (FUCOM) technique. FUCOM is designed to determine room costs in a hotel business accurately. Expert evaluations were simulated to interpret the results statistically. Also, the Best–worst method (BWM) is used to compare the results. The results of this study hold significant implications for decision-makers, implementers, stakeholders, and theoretical contributions to hotel operations. The proposed model will enable hotels to identify room costs and realistically achieve a sustainable competitive edge. The proposed system is also suitable for implementation by other enterprises operating in the service sector.

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Authors and Affiliations

  1. Department of International Trade and Logistics, Faculty of Economics and Administrative Sciences, Kilis 7 Aralık University, Kilis, Turkey

    Mehmet Ozcalici & Hasan Emin Gurler

  2. Department of Operations Research and Statistics, Faculty of Organizational Sciences, University of Belgrade, Belgrade, Serbia

    Dragan Pamucar

  3. College of Engineering, Yuan Ze University, Taoyuan City, Taiwan

    Dragan Pamucar

  4. Department of Computer Science and Mathematics, Lebanese American University, Byblos, Lebanon

    Dragan Pamucar

  5. Department of Finance of Banking, Faculty of Aplied Sciences, Akdeniz University, Antalya, Turkey

    Ahmet Kaya

  6. Department of Accounting and Tax, Korkuteli Vocational School, Antalya, Turkey

    Burcin Tutcu

  7. Graduate Student Department of Finance of Banking, Institute of Social Sciences, Akdeniz University, Antalya, Turkey

    Hatice Karamanci

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  1. Mehmet Ozcalici
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  2. Dragan Pamucar
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  3. Ahmet Kaya
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Correspondence to Dragan Pamucar.

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Ozcalici, M., Pamucar, D., Kaya, A. et al. Strategizing competitive edge in service operations: a model proposal for determining the unit costs through the activity-based cost accounting and the full-consistency method. Oper Manag Res (2024). https://doi.org/10.1007/s12063-024-00485-1

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