The Impact of Cost Leadership & Product Differentiation on Profitability in the Industrial Companies Listed on the Amman Stock Exchange (ASE)

Abstract

This article aims to demonstrate the impact of cost leadership and product differentiation on profitability in ASE-listed industrial companies. To achieve the research objectives, the descriptive-analytical method is adopted. The research population comprises all (33) ASE-listed industrial companies, exceptfor two companiesdue to the lack of necessary data, making the research sample in the final form (31) companies. Data is collected from the published lists of ASE-listed industrial companies between (2017) and (2021). The appropriate statistical methods are used through the (Smart-PLS) program to analyze the two research independent variables; cost leadership and product differentiation, and profitability as a dependent variable. The findings indicate a statistically significant impact of cost leadership and product differentiation on profitability in its dimensions: return on assets, return on equity, and return on invested capital in the ASE-listed industrial companies, demonstrating that the management policy in the surveyed industrial companies aims to reducing production costs and following a policy of a higher level of quality of goods. The research recommends working on raising the culture of differentiation between all administrative levels of workers in industrial companies and conducting much research work covering other economic sectors such as banks and the services sector.