abc adoption
ABC adoption and implementation
Abstract:
The research focuses on improving the design and implementation of ABC in Jordanian manufacturing industries, quantitative and qualitative info have been used during the research. The main objectives of this research are listed below:
1- Figuring out the main reasons for not adopting ABC system
2- Defining factors that blocks ABC implementation
3- Defining factors that supports the procedure to implement ABC system
4- Defining factors that encourage the implementation of ABC
5- Recognizing the reason for implementing ABC system
6- Figuring out the main obstacles that are faced in ABC implementation
7- Checking the opinion of industries using the ABC system and the grade of success using this system, not to mention persuading other industries to use this system.
Literature Review:
Diffusion of innovations
According to (Rogers, 1962), diffusion of innovation is the theory of how, why and at what rate new ideas and technology reach through cultures.
Management Accounting change and factors influencing the process of change
Bradford and Kent (1977) argue that an innovation is taking a new or previous idea and adjust it into a new setting; however the change is not necessarily a new innovation or idea.
As for Innes and Mitchell (1990) during their study in electronic sector, they have found three types of factors influencing managerial accounting change procedure, which are: facilitators, motivators and catalysts.
The reasons for adoption of ABC
Cooper (1991) claimed that the main reason for adopting ABC system was the growing costs and diversity of products, whereas Chongruksut (2002) found out that the financial crisis and the economic recessions in Thailand were the main reasons for ABC adoption.
Van Nuyen and Brooke (1997), Cooper (1988) and Giacobbe (1997) all agree in their study that there is a positive association between motivator’s factors such as change in cost structure, competition and ABC
Abstract:
The research focuses on improving the design and implementation of ABC in Jordanian manufacturing industries, quantitative and qualitative info have been used during the research. The main objectives of this research are listed below:
1- Figuring out the main reasons for not adopting ABC system
2- Defining factors that blocks ABC implementation
3- Defining factors that supports the procedure to implement ABC system
4- Defining factors that encourage the implementation of ABC
5- Recognizing the reason for implementing ABC system
6- Figuring out the main obstacles that are faced in ABC implementation
7- Checking the opinion of industries using the ABC system and the grade of success using this system, not to mention persuading other industries to use this system.
Literature Review:
Diffusion of innovations
According to (Rogers, 1962), diffusion of innovation is the theory of how, why and at what rate new ideas and technology reach through cultures.
Management Accounting change and factors influencing the process of change
Bradford and Kent (1977) argue that an innovation is taking a new or previous idea and adjust it into a new setting; however the change is not necessarily a new innovation or idea.
As for Innes and Mitchell (1990) during their study in electronic sector, they have found three types of factors influencing managerial accounting change procedure, which are: facilitators, motivators and catalysts.
The reasons for adoption of ABC
Cooper (1991) claimed that the main reason for adopting ABC system was the growing costs and diversity of products, whereas Chongruksut (2002) found out that the financial crisis and the economic recessions in Thailand were the main reasons for ABC adoption.
Van Nuyen and Brooke (1997), Cooper (1988) and Giacobbe (1997) all agree in their study that there is a positive association between motivator’s factors such as change in cost structure, competition and ABC