The role of manufacturing practices in mediating the impact of activity-based costing on plant performance

Banker, Rajiv D.; Bardhan, Indranil R.; Chen, Tai-Yuan

doi:10.1016/j.aos.2006.12.001

Cited by 96 publications

(112 citation statements)

References 29 publications

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“…It is noteworthy that a significant percentage of the companies reported not using any of the methods listed (31%). These results are in line with some reviewed studies that report ABC utilization rates close to 25%, especially in the largest Portuguese companies (Tomás et al, 2008), in Finnish companies from various sectors (Kallunki and Silvola, 2008), and in American industrial companies (Banker, et al, 2008). We have also questioned non-users of the approach by activities in order to identify the major inhibitors to the implementation of activity-based methods.…”

Section: -Using the Approach By Activitiessupporting

confidence: 88%

“…An identical percentage (12%) was found by Sartorius et al (2007) in 181 South African companies. Three studies conducted in the same year, but in different countries, showed very close ABC utilization rates: the study of Tomás et al (2008), conducted in Portugal in the 500 largest non-financial companies had a rate of 22%; Kallunki and Silvola (2008) reported an utilization rate of 21% in 500 Finnish companies from various activity sectors; Banker et al (2008) analyzed 27,000 American industrial companies, and found an ABC utilization rate of 20%. After the study of Tomás et al (2008), another research was conducted in Portugal with widely varying results (Machado, 2012).…”

Section: -Literature Reviewmentioning

confidence: 96%

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Quality in management accounting: approach by activities in large companies

Machado

Alves

2017

IJPQM

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This study intends to contribute to the knowledge about the approach by activities, a management accounting method that promotes the quality of information. As specific objectives we have identified the following: to analyze the knowledge rate regarding the approach by activities, and identify whether there is a link between it and the financial officers' characteristics; to analyze the utilization rate of the approach by activities, and the factors conditioning it; to analyze whether there is a link between a company's features, and the use of the approach by activities. The data collection method used was the application of a survey to the financial officers of the largest Portuguese companies, which yielded 61 valid responses. The results found allowed us to conclude the following: the Time Driven Activity Based Costing is very little known and used in Portugal; there is a link between the knowledge of the approach by activities and the financial officers' gender, age and educational background; there is a link between the use of the approach by activities and two company features: the legal form and the capital holding.

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Section: -Using the Approach By Activitiessupporting

confidence: 88%

Section: -Literature Reviewmentioning

confidence: 96%

Quality in management accounting: approach by activities in large companies

Machado

Alves

2017

IJPQM

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“…ABC uses cost-drivers to allocate the costs of products and services (Banker et al, 2008). ABC not only improves the accuracy of product-and service-costing but also helps managers understand how resources are used through financial performance, such as return on investment and bottom line statements (Cagwin and Bouwman, 2002).…”

Section: Introductionmentioning

confidence: 99%

ABC success: evidence from ISO 9000 certified companies in Thailand

Intakhan

2014

Asian Review of Accounting

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Purpose – The purpose of this paper is to examine the success of activity-based costing (ABC) implementation by confirmatory factor analysis of ISO 9000 certified companies in Thailand. Design/methodology/approach – A structured questionnaire was used to collect data from key participants, accountant managers in ISO 9000 certified companies. Findings – The study confirmed the six constructs for the sample of 102 key participants. The results indicated that ABC implementation success in the context of ISO 9000 certified companies in Thailand consists of upper-management support, ABC system training, non-accounting ownership, links to quality initiative, adequate resources, and links to performance evaluation. Originality/value – The findings have significant implications for ISO 9000 certified companies which intend to adopt or implement ABC. Past findings on ABC implementation success have a small-sample size so they are of limited usefulness. This research has a larger sample size and more carefully chosen participants and so the generalizations are more acceptable.

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“…The results of their study indicated that under high customization systems, MAIS must provide types of customer or market related broad scope and aggregated information, which also reflect the strategic orientation of a firm. Banker, Bardhan, and Chen (2008) empirically showed that under high degrees of AMT, the use of activity-based costing more contributes to the improvement of plant performance than under low levels of AMT. Based on the complementarity theory, they suggested that activity-based costing is a strategically more suitable mechanism to control and monitor the implementation of AMT.…”

Section: A Amt and Mais Strategic Alignmentmentioning

confidence: 99%

“…Rather, they focused on the alignment between IS strategy and business strategy without considering the causal factors of alignment. It is generally assumed that the advanced manufacturing technology (AMT) adopted by manufacturing firms requires a high level of strategic alignment of management accounting information systems (MAIS) (Banker, Bardhan, and Chen, 2008;Fullerton, Kennedy, and Widener, 2013). However, the causal relationships between AMT, strategic alignment of MAIS, and organizational performance have not been empirically examined.…”

Section: ⅰ Introductionmentioning

confidence: 99%

The Strategic Alignment of Management Accounting Information Systems, and Organizational Performance

Choe¹

2017

Glob Bus Financ Rev

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A B S T R A C TUsing structural equation modeling, this study empirically examined the causal relationships among the level of advanced manufacturing technology (AMT), facilitation of alignment, the degree of strategic alignment of management accounting information systems (MAIS), and the improvement of production performance. The causal relationships between MAIS strategic alignment and information characteristics of MAIS were also investigated. Results showed that the level of AMT has a significant and positive impact on alignment facilitation. A significant causal relationship between alignment facilitation and MAIS strategic alignment was also found. It was shown that under high degrees of MAIS strategic alignment, MAIS must provide broad-scope and integrated types of information. The causal relationships between MAIS strategic alignment and organizational performance were significant and positive. Thus, it is concluded that under high levels of AMT, high degrees of MAIS strategic alignment positively contribute to the improvement of a firm's production performance. Ⅰ. IntroductionStrategic alignment of information systems (IS) has become an important research topic. Thus, many studies (e.g., Alina and Daniel, 2013;King and Teo, 1997;Wu, Straub, and Liang, 2015) have suggested definitions and types of IS strategic alignment and investigated its impact on performance. Das, Zahra, and Warkentin (1991) have suggested a framework that links strategic IS planning and business strategy, Received: Jun. 20, 2017; Revised: Oct. 16, 2017; Accepted: Nov. 17, 2017 † Jong-min Choe Professor, School of Business, Kyungpook National University, Taegu, Republic of Korea Tel. +82-53-950-5445 E-mail: choejj@knu.ac.kr and relates it to company performance. Alina and Daniel (2013) defined the strategic alignment of IS as a collaborative process among business strategy, business organization, and IS infrastructure and strategy. King and Teo (1997) proposed four types (i.e., degrees) of alignment: administrative, sequential, reciprocal, and full integration. They also empirically examined and demonstrated the positive effects of the degrees of alignment on organizational performance. Wu, Straub, and Liang (2015) defined IS strategic alignment as the fit between business strategy and IS strategy. They confirmed the positive impact of IS strategic alignment on business performance. In investigating the effects of IS strategic alignment on performance, some prior studies did not consider contingency variables that may influence the strategic

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The role of manufacturing practices in mediating the impact of activity-based costing on plant performance

Cited by 96 publications

References 29 publications

Quality in management accounting: approach by activities in large companies

Quality in management accounting: approach by activities in large companies

ABC success: evidence from ISO 9000 certified companies in Thailand

The Strategic Alignment of Management Accounting Information Systems, and Organizational Performance

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