Date of Award
Master of Business
School of Business
Faculty of Business and Public Management
Associate Professor Colin Dolley
The study provides exploratory empirical evidence on the likelihood of Activity Based Costing (ABC) to succeed in a university setting and the association of this success with specific behavioral implementation factors. The study examined perceptions of Edith Cowan University's ABC users and preparers of the likelihood of the system to succeed in the University and their perceptions of eleven behavioral implementation factors identified by previous studies to have significant association with ABC implementation success. Results were analyzed so as to determine the significance of the correlation between the users' and preparers' perceptions of each of the eleven factors and their perception of the likelihood of ABC implementation to succeed in ECU. Results were then analyzed independently for the user group as well as for the preparer group to test the ability of the study model to explain the ABC success likelihood from each group's perspective. Results also were analyzed to detect differences, if found, between users and preparers in their perceptions of the ABC success likelihood as well as their perceptions of each of the eleven implementation factors. The study has four primary results. First, results indicate the existence of significant positive correlations between the study participants' perceptions of the likelihood of ABC success and their perceptions of top management involvement and support to the implementation project, the linkage of the ABC system with the University's competitive strategies and continuous improvement programs, the training provided to employees at all levels concerning designing, implementing and using the ABC system, the likelihood to take ABC ownership by non-accountants as well as by accountants, and the existence of an organizational culture within the University that allows the embracement of the ABC change. Second, the study confirmed that the study's eleven behavioural factors altogether explains significantly the users' perceptions of the likelihood of ABC to succeed in the University. Third, the theoretical framework predicting the effect of the study's eleven implementation behavioural variables on the likelihood of ABC to succeed fails to explain significantly preparers' perceptions of the likelihood of ABC to succeed in the University. From a users' perspective, the study provided evidence that the study's theoretical framework explains significantly the likelihood of ABC to succeed. Fourth, the results indicate that perceptions of ABC implementation may vary depending on the role of participants in the system implementation process; the study results indicate the existence of significant differences between users and preparers in the perceptions of each group of the likelihood of ABC to succeed in the University and the existence of significant differences between the two groups in their perceptions of most of the study's behavioral implementation factors. The study, finally, provides several suggestions for future research. The study is expected to benefit recent and future ABC implementers by directing their attention to the system's characteristics that have been proved to have significant correlations with the system's perceived likelihood of success. The study is also expected, by extending previous theoretical models, to advance the developed theory supporting the association of ABC certain characteristics and the system implementation success.
Jarrar, N. (2004). Perceived likelihood of activity-based costing to succeed in a university setting. Retrieved from http://ro.ecu.edu.au/theses/829