Material science and cost accounting: The role of thermal conductivity in energy cost optimisation and performance measurement

This study examined the role of material thermal conductivity optimization in improving organisational performance through energy cost optimisation, while assessing the moderating influence of organisational practices. The study addresses the disconnect between engineering-based energy management and management accounting by integrating material thermal properties into strategic cost management. 
Anchored on Systems Theory and the Resource-Based View, a quantitative cross-sectional research design was adopted. Primary data were collected through structured questionnaires administered to 200 managerial and technical personnel from energy-intensive manufacturing, oil and gas, and process-based firms in Nigeria. Data were analysed using path-coefficient structural regression to test the hypothesised moderated mediation relationships.
The findings indicate that Thermal Conductivity Optimization (TCO), achieved by maximizing conductivity in heat-transfer systems and minimizing conductivity in insulation materials, significantly enhances Energy Cost Optimisation (ECO) (β = 0.54, p < 0.001). Organisational Practices (OP), represented by advanced technology adoption and Material Flow Cost Accounting (MFCA), significantly strengthen this relationship (interaction β = 0.18, p < 0.001). Furthermore, ECO was found to mediate the relationship between TCO and Strategic Performance Measurement (SPM), explaining a substantial proportion of performance variation (R² = 0.712; β = 0.62, p < 0.001). Improved energy efficiency translated into lower energy intensity, enhanced cost-efficiency, favourable cost variances, and improved return on assets.
The study concludes that thermal conductivity optimization constitutes a strategic structural cost driver capable of reducing energy-related inefficiencies and strengthening organisational performance. It contributes to the literature by integrating engineering thermodynamics with management accounting and offers practical guidance for enhancing industrial sustainability and competitive advantage in energy-intensive sectors.