The Effects of Organizational Culture and Structure on the Success of Activity-Based Costing Implementation

Zhang, Yi Fei; Hoque, Zahirul; Isa, Che Ruhana

doi:10.1108/s1474-787120150000025008

Cited by 20 publications

(27 citation statements)

References 23 publications

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“…One of the causes of this failure is related to the fact that the focus is mostly on technical aspects and little attention is paid to the organizational aspects and the real needs of the organizations in terms of cost accounting and management [69]. Indeed, the implementation of a successful cost management system depends not only on the costing method used but also on elements related to the organizational structure (e.g., the characteristics of the available information systems) and the organizational culture (e.g., engagement, management, and cost consciousness) [37,65]. For instance, the consensus among the different stakeholders is vital, since cost management influences operational, tactical, strategic, financial, and quality issues, which are linked to all levels of management and operation in the organization [70,71].…”

Section: Discussionmentioning

confidence: 99%

“…For example, if the cost of obtaining more information on the cost objects exceeds the benefits of more detailed information, one solution could be to group the cost objects (e.g., products, services) and compute the average costs. The decision on the level of detail will depend on the cost-benefit analysis associated with the detail of the information, and also on the structure necessary to determine the cost and finally on the organizational culture about costs [65]. In the design and implementation of costing systems it is expected to have several sprints.…”

Section: Proposed Scrum Methodology For the Design And Implementation Of Costing Systemsmentioning

confidence: 99%

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Using Agile Project Management in the Design and Implementation of Activity-Based Costing Systems

2020

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The success of a costing system is dependent on its appropriation and assimilation by the organization. The involvement of all stakeholders from the early stages of design and implementation plays a critical role in this process. In this paper, the use of agile project management is investigated to support the design and implementation of more effective costing systems. A Design Science Research approach was followed to apply an agile project management approach—the Scrum methodology—to the design and implementation of an Activity-Based Costing (ABC) system in a hospital imaging service. The proposed methodology identifies the roles, the events, and the most important artifacts in the design and implementation of costing systems. Research results show that applying agile project management principles contributes to a higher degree of acceptance of the costing system by the operating personnel, as well as by top management. It was also found that a simpler model (result of sprint 5), instead of a more detailed one (proposed for sprint 4), may better fit the interests of the decision makers and the organization’s accounting and information systems. Thus, the best costing system is not necessarily the most complete or accurate, but the one that is most useful and adapted to the organization’s needs. The definition of the product backlog, the several sprints, and the iterative process were critical in this process. The adoption of the Scrum methodology allowed the design and implementation of an ABC system more adapted to the organization’s needs and allowed the early identification of problems that, traditionally, are only perceived at the end of the implementation process, therefore increasing the performance and economic sustainability of organizations.

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Section: Discussionmentioning

confidence: 99%

Section: Proposed Scrum Methodology For the Design And Implementation Of Costing Systemsmentioning

confidence: 99%

Using Agile Project Management in the Design and Implementation of Activity-Based Costing Systems

2020

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“…Organizational cultural capital, indeed, is strongly influenced by the individual background of those operating at the organizational field level (Mangez & Liénard, 2015) and the different type of performance measurement systems adopted can support strategic decision and legitimate management actions (Henri, 2006). Thus, scholars have highlighted the relationship between strategies, culture, and management accounting systems since these latter are able to drive cultural organizational changes according to the strategies of the firms (Ax & Greve, 2017;Baird et al, 2004Baird et al, , 2007Baird et al, , 2018Cinquini & Tenucci, 2010;Zhang et al, 2015). The possibility of legitimizing an administration decision-making process based on the prevalence of one logic over another is indeed particularly needed in hybrid contexts.…”

Section: Hybrid Organizationsmentioning

confidence: 99%

Institutional logics and organizational change: the role of place and time

Ponte

Pesci

2021

J Manag Gov

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This paper investigates the case of a hybrid organization located in Northern Italy with the aim of providing an understanding of the role of the context, defined in terms of ‘place’ and ‘time’, in shaping organizational changes. A dynamic institutional approach focused on both ‘place’ and ‘time’ as key explanatory factors can provide a valuable framework to understand both the changing institutional demands on the firm and the rationalities behind the changes that occur at organizational, strategic and governance level. Consequently, this paper aims to contribute to the institutional logics literature by describing how these two contextual elements can be used to interpret institutional logic pressures on the organization under investigation as well as govern changes at micro level. The results indicate that the changes were produced by dynamics that are exogenous and endogenous to the organization in the case study and strongly influenced by the context in which it operates. The paper also highlights how changes in terms of service provision, accountability and organizational setting are the results of the ‘place’ and ‘time’ in which these events occur.

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“…In addition, Zhang, Hoque and Isa (2015) assumed that for companies without a CFO or Financial Controller, the Finance Manager would be the appropriate respondent. The CFO, Financial Controller and Fnance Manager are considered appropriate to answer the research questionnaire because they have explicit knowledge and sufficient expertise for implementing ABC and understand the circumstances regarding external contingency factors that might affect the implementation of ABC and overall performance in their companies (Ismail et al 2018b;Zhang et al 2015). Generally, organizational researchers on quantitative research often employ the survey method, as it is considered the most appropriate method for collecting information on predetermined instruments that yield statistical data on a large sample to generalize the result (Creswell 2009).…”

Section: External Contingency Factors Abc Implementation and Organizmentioning

confidence: 99%

The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance

Albalaki

Abdullah²,

Kamardin³

2019

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The Activity-Based Costing (ABC) system continues to gain attention due to the increasing challenges in the current business environment. This situation motivated the researchers to examine external contingency factors (environmental uncertainty (EU) and market orientation (MO)) that influence ABC implementation and the possible effects of ABC implementation on organizational performance. This study also examines the mediating effect of ABC implementation on the relationship between external contingency factors and organizational performance in a developing economy. A cross-sectional survey was conducted among 114 manufacturing companies in Iraq. The data was analyzed using PLS3-SEM, and the results revealed that EU and MO have a positive and significant effect on ABC implementation, and that ABC implementation has a positive and significant effect on organizational performance. Furthermore, this study establishes the mediating role of ABC implementation on the relationship between external contingency factors and organizational performance.

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The Effects of Organizational Culture and Structure on the Success of Activity-Based Costing Implementation

Cited by 20 publications

References 23 publications

Using Agile Project Management in the Design and Implementation of Activity-Based Costing Systems

Using Agile Project Management in the Design and Implementation of Activity-Based Costing Systems

Institutional logics and organizational change: the role of place and time

The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance

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