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THE IMPACT OF COST MANAGEMENT ON INNOVATION
This research explores the impact of cost management on innovation with objectives: (1) to assess the relationship between cost management and innovation capacity; (2) to identify cost management practices that support innovation; (3) to understand the challenges in balancing cost management with innovation. A survey design is employed to gather quantitative data. Using Taro Yamane's formula, a sample size of 300 respondents from Uyo is selected, representing a mix of innovative industries. A technology firm is chosen as the case study due to the significant impact of cost management on innovation in technology-driven businesses. The survey instrument has a reliability coefficient score of 0.86. Findings show that effective cost management practices, such as budget allocation for R&D, lean management, and cost-benefit analysis, support innovation by freeing up resources for creative projects. However, challenges include balancing cost control with the need for innovation and managing the risks associated with innovative projects. It is recommended that businesses integrate cost management with their innovation strategies, invest in R&D, and create a supportive environment for innovation while maintaining cost efficiency.
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