The objective of the study is to determine the impact of advanced operation technology and stakeholder integration on firms’ costs performances. A model is proposed that links advanced operations technology (AOT), to firms’ cost performances (CP) via stakeholder integration (SI).  The underlying dimensions of advanced operations technology, stakeholder integration, and costs performances were empirically verified and validated through confirmatory factor analysis (CFA), reliability analysis procedure, and construct validity test. Structural Equation Modeling (SEM) was employed to test the model, drawing on a sample of 254 operations managers or equivalent positions who work in service sectors in Malaysia. Data analysis revealed that, a significant relationship was found between the level of stakeholder integration and costs performances. Further, advanced operations technology significantly influences costs performances and it was realized through the mediating role of stakeholder integration. Overall, as this study confirms the impact of advanced operations technology on stakeholder integration and costs performances in services sector in Malaysia, Managers should pay attention to enhancing technology and stakeholder integration in their organizations.

KEYWORDS: Advanced operations technology, Stakeholder integration, Costs performances, Services, Malaysia.