Cost Management as a Strategy for Competitiveness in Private Higher Education Institutions in Cabinda

Abstract

This dissertation investigates Cost Management as a Strategy for the Competitiveness of Private Higher Education Institutions (PHEIs) in Cabinda, highlighting its importance as a strategic instrument for institutional efficiency, sustainability, and performance. The study employed a qualitative case study method at the Polytechnic Higher Institute of Cabinda (ISPCAB), using semi-structured interviews and document analysis of managerial data and internal records. The implementation of Activity-Based Costing (ABC) enabled precise allocation of costs by activity and academic program, ensuring greater traceability and supporting decision-making processes. The findings reveal a positive impact on operational efficiency and financial sustainability, with costs representing 17.5% of annual revenue and the highest profit margin observed in the International Relations program (85.61%). ABC also facilitated internal benchmarking, identifying best practices and performance disparities among programs. The results confirm that strategic cost management enhances competitiveness by optimizing resources and improving profitability, constituting a valuable, rare, inimitable, and well-organized resource for institutional advantage (VRIO framework). Furthermore, this study addresses a gap in the literature on the application of ABC in African PHEIs, offering a scalable reference model for other institutions with limited resources in Angola and similar contexts. The study concludes that cost management—particularly through ABC, is essential for proactive decision-making, operational efficiency, financial sustainability, and competitive advantage, paving the way for future research and more robust institutional strategies.