ADAPTIVE ECONOMIC PREPAREDNESS MODEL (AEPM): A FIVE-PILLAR FRAMEWORK FOR COST CONSCIOUSNESS AND MICRO-ADAPTIVE EFFICIENCY
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This study proposes the Adaptive Economic Preparedness Model (AEPM) as a novel five-pillar framework for enhancing cost consciousness, operational efficiency, and organizational performance. Traditional cost management and continuous improvement approaches, including Kaizen, primarily address inefficiencies after they become visible. In contrast, AEPM introduces a proactive, observation-driven approach that enables the identification and correction of micro-inefficiencies before they develop into measurable cost structures.
The framework integrates five dimensions: operational efficiency, behavioral awareness, contextual alignment, cognitive activation, and effort-economic optimization. Drawing on insights from behavioral economics, cognitive control theory, and human error analysis, the study demonstrates that inefficiencies persist due to habitual behavior, cognitive effort avoidance, and decision-making biases, rather than lack of knowledge.
The concept of micro-adaptive efficiency is introduced to explain how small, continuous improvements viz., 9 reductions in time, material, or process steps can generate significant cumulative economic impact. The paper contributes to the literature by positioning cost consciousness as a behavioral and cognitive capability, rather than a pure financial control mechanism.
AEPM offers practical implications for organizations seeking sustainable cost management, productivity improvement, and resilience in dynamic economic environments.
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Neelayapalem, R. K. (2026). Adaptive Economic Preparedness Model (AEPM): A Five-Pillar Framework for Cost Consciousness and Micro-Adaptive Efficiency. International Journal of Science, Strategic Management and Technology, 02(03). https://doi.org/10.55041/ijsmt.v2i3.348
Neelayapalem, Ravi. "Adaptive Economic Preparedness Model (AEPM): A Five-Pillar Framework for Cost Consciousness and Micro-Adaptive Efficiency." International Journal of Science, Strategic Management and Technology, vol. 02, no. 03, 2026, pp. . doi:https://doi.org/10.55041/ijsmt.v2i3.348.
Neelayapalem, Ravi. "Adaptive Economic Preparedness Model (AEPM): A Five-Pillar Framework for Cost Consciousness and Micro-Adaptive Efficiency." International Journal of Science, Strategic Management and Technology 02, no. 03 (2026). https://doi.org/https://doi.org/10.55041/ijsmt.v2i3.348.
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