• Abdelrahim Nassoura Accounting Department, American University in the Emirates, Dubai, UAE



Non-Accounting Ownership, Information Technology, ABC implementation, Industrial Companies.


Activity-based costing (ABC) system is widely accepted as an innovative and alternative costing system to handle the deficiencies of traditional costing systems. This paper examines the direct impact of information technology and non-accounting ownership on the successful implementation of ABC. Based on recent reports and academic works, the present study aims to cope with the issue in industrial companies concerning the low ABC rate. A quantitative approach design was employed using a questionnaire to address the paper objectives. 327 financial mangers responses were gained from Jordanian industrial shareholding companies.  The present research has several contributions to fulfill the gap in recent literature, some of which are theoretical while others are practical by elaborating the direct impacts of the critical factors in the successful implementation of ABC in the industrial sector in the context of developing countries including Jordan.


Elshaer, A. M. (2022). Analysis of restaurants’ operations using time-driven activity-based costing (TDABC): case study. Journal of Quality Assurance in Hospitality & Tourism, 23(1), 32-55.

Hair, J.F., Ringle, C.M. and Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19 (2), 139–151.

Baird, K., Harrison, G., and Reeve, R. (2007). Success of activity management practices: the influence of organizational and cultural factors. Accounting and Finance, 47(1), 47-67.

Auzair, S.M. and Langfield-Smith, K. (2005). The effect of service process type, business strategy and life cycle stage on bureaucratic MCS in service organizations. Management Accounting Research, 16 (4), 399–421.

Bvumbi, M. N. (2017). An analysis of the implementation of activity based costing at the Water Trading Entity (Doctoral dissertation).

Simões Corrêa Galendi, J., Yeo, S. Y., Simic, D., Grüll, H., Stock, S., & Müller, D. (2022). A time-driven activity-based costing approach of magnetic resonance-guided high-intensity focused ultrasound for cancer-induced bone pain. International Journal of Hyperthermia, 39(1), 173-180.

Niñerola, A., Hernández-Lara, A. B., & Sánchez-Rebull, M. V. (2021, August). Is Time-Driven Activity-Based Costing coming out on top? A comparison with Activity-Based Costing in the health field. In Healthcare (Vol. 9, No. 9, p. 1113). MDPI.

Anderson, S. W. (1995). A framework for assessing cost management system changes: the case of activity based costing implementation at General Motors, 1986–1993. Journal of Management Accounting Research, 7, 1–51.

Roztocki, N., and Imai, A. (2003). An Exploratory Study of the Impact of Information Technology Investment Announcements on Companies' Values in Japan. AMCIS 2003 Proceedings, 183.

Chenhall, R. H. (2003). Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, organizations and society, 28(2), 127-168.

Chenhall, R. H. (2004). The role of cognitive and affective conflict in early implementation of activity-based cost management. Behavioral Research in Accounting, 16, 19-44.

Maiga, A. S., and Jacobs, F. A. (2007). Activity-based cost management and manufacturing, operational and financial performance: A structural equation modeling approach. In Advances in Management Accounting (pp. 217-260). Emerald Group Publishing Limited.

Argyris, C., & Kaplan, R. S. (1994). Implementing new knowledge: The case of activity-based costi. Accounting horizons, 8(3), 83.

Brewer, P. C. (1998). National culture and activity-based costing systems: a note. Management Accounting Research, 9(2), 241-260. doi:

McGowan, A. S., and Klammer, T. P. (1997). Satisfaction with activity-based cost management implementation. Journal of Management Accounting Research, 9, 217.

Gosselin, M. (1997). The effect of strategy and organizational structure on the adoption and implementation of activity-based costing. Accounting, organizations and society, 22(2), 105-122.

Krumwiede, K. R. (1998). The implementation stages of activity-based costing and the impact of contextual and organizational factors. Journal of management accounting research, 10, 239.

Foster, G., and Swenson, D. W. (1997). Measuring the success of activity-based cost management and its determinants. Journal of Management Accounting Research, 9, 109–141.

Agbejule, A. (2006). Motivation for activity-based costing implementation: Administrative and institutional influences. Journal of Accounting and Organizational Change, 2(1), 42-73.

Anderson, S. W. (1995). A framework for assessing cost management system changes: the case of activity based costing implementation at General Motors, 1986–1993. Journal of Management Accounting Research, 7, 1–51.

Sleihat, N., Al-Nimer, M., and Alabbadi, S. (2012). The Effect of Advanced Technology on the Implementation of Costing System Practices: Case of JordanDirasat: Administrative Sciences.-2012, Vol. 39, No. 1. University of Jordan

Kongchan, P. (2013). Factors influencing the implementation of activity-based costing in Thai companies (Doctoral dissertation, RMIT UNIVERSITY).

Chongruksut, W. (2002). The adoption of activity-based costing in Thailand (Doctoral dissertation, Victoria University).

Al-Khadash, H. A., and Mahmoud, N. (2010). The implementation of activity-based costing and the financial performance of the Jordanian industrial shareholding companies. Afro-Asian Journal of Finance and Accounting, 2(2), 135-153.

Al-Bawab, A. A., & Al-Rawashdeh, H. (2016). The Impact of the Activity Based Costing System (ABC) in the Pricing of Services Banks in the Jordanian commercial Banks: A Field Study. International Business Research, 9(4), 1.

Jusoh, R., & Miryazdi, S.M. (2015). The influence of technological and environmental factors on the diffusion of activity-based costing in Iran. Tékhne, 13(2), 95-109.

Pashkevich, N., von Schéele, F., & Haftor, D. M. (2023). Accounting for cognitive time in activity-based costing: A technology for the management of digital economy. Technological Forecasting and Social Change, 186, 122176.

Affes, H. (2016). The diffusion of an integrated Activity-Based Costing (ABC) with the Economic Value Added (EVA) next to Tunisian enterprises. DEZBATERI SOCIAL ECONOMICE, 5(2), 32-52.

Lu, C., Sridharan, V. G., & Tse, M. S. (2016). Implementation of the activity-based costing model for a farm: an Australian case. Journal of Applied Management Accounting Research, 14(2).

Cooper, R. (1992). Implementing activity-based cost management: moving from analysis to action: implementation experiences at eight companies. Inst of Management Accountants.

Cooper, R., & Kaplan, R. S. (1988). Measure costs right: make the right decisions. Harvard business review, 66(5), 96-103.

Roztocki, N., and Schultz, S. M. (2003, January). Adoption and implementation of activity-based costing: a web-based survey. In IIE Annual Conference. Proceedings (p. 1). Institute of Industrial and Systems Engineers (IISE).

Byrne, S. (2011). What determines ABC success in mature sites?. Journal of Accounting and Organizational Change, 7(3), 259-277.

Kim, G., Park, C. S., & Yoon, K. P. (1997). Identifying investment opportunities for advanced manufacturing systems with comparative-integrated performance measurement. International Journal of Production Economics, 50(1), 23-33.

Aldukhil, Y, (2012). Developing and Testing a Model of Successful Adoption of Activity Based Costing. (Phd Thesis, Victoria University).

Reynolds, A. (2013). Factors influencing the success of activity-based costing in the Nelson Mandela Bay metropole manufacturing industry.

Al-Omiri, M., & Drury, C. (2007). A survey of factors influencing the choice of product costing systems in UK organizations. Management accounting research, 18(4), 399-424.

Omar M. H. (2009). The ABC system in the industrial companies on Jordan and its Relationship to Financial performance- Implementing and proposed measurement model , Amman Jordan , Arab Academy for Banking and financial Science.

Fie, Z., & Isa, C. (2010). Factors influencing activity-based costing success: A research framework. International Journal of Trade, Economics and Finance, 1(2).

Al-Refa'ee, K. (2012). The extent of applying the Activity Based Costing system in the field of Iron and Steel industry in Jordan. Interdisciplinary Journal of Contemporary Research in Business, 4(1), 671-695.

Brown, D. A., Booth, P., and Giacobbe, F. (2004). Technological and organizational influences on the adoption of activity‐based costing in Australia. Accounting and Finance, 44(3), 329-356.

Taba, L. M. (2005). Measuring the Successful Implementation of Activity Based Costing (ABC) in the South African Post Office (Doctoral dissertation, UNIVERSITY OF SOUTH AFRICA).

Sartorius, K., Eitzen, C., and Kamala, P. (2007). The design and implementation of Activity Based Costing (ABC): a South African survey. Meditari: Research Journal of the School of Accounting Sciences, 15(2), 1-21.

Akinyomi, O. J. (2013). Effect of top management support on activity-based costing system implementation in Nigerian manufacturing sector. International Academic Research for Multidisciplinary, 1(9), 148-157.

Dubihlela, J., and Rundora, R. (2014). Employee Training, Managerial Commitment And The Implementation Of Activity Based Costing; Impact On Performance Of SMEs. The International Business and Economics Research Journal (Online), 13(1), 27.

Intakhan, P. (2014). Direct and indirect effects of top management support on abc implementation success: evidence from ISO 9000 certified companies in Thailand. Procedia-Social and Behavioral Sciences, 164, 458-470.

Sae'b Jarrar, N., Smith, M., and Dolley, C. (2007). Perceptions of preparers and users to accounting change: a case study in an Australian university. Managerial Auditing Journal, 22(1), 80-94.

Agbejule, A. (2006). Motivation for activity-based costing implementation: Administrative and institutional influences. Journal of Accounting and Organizational Change, 2(1), 42-73.

Rahmouni, A. F. A., and Charaf, K. (2010). Success of Activity-Based Costing Projects in French Companies: The Influence of Organizational and Technical Factors. Available at SSRN 1686246.

Xiao, J. Z., Duh, R. R., and Chow, C. W. (2011). Exploring the direct and indirect performance effects of information/communication technology and management accounting and controls. Accounting and Business Research, 41(2), 145-169.

Askarany, D., Smith, M., and Yazdifar, H. (2007). Technological innovations, activity based costing and satisfaction. JABM: Journal of Accounting, Business and Management 14, 53-63.

Zhang, Y. F. (2010). Factors influencing Activity-Based Costing (ABC) success implementation: a study among manufacturing firms in China/Zhang Yi Fei (Doctoral dissertation, Universiti Malaya).

Byrne, S., Stower, E., and Torry, P. (2009). Activity Based Costing Implementation Success in Australia. Journal of Applied Management Accounting Research 7(1), 37-51.

McGowan, A. S. (1998). Perceived benefits of ABCM implementation. Accounting Horizons, 12(1), 31-50.

Anderson, S. W., and Young, S. M. (1999). The impact of contextual and process factors on the evaluation of activity-based costing systems. Accounting, Organizations and Society, 24(7), 525-559

Krumwiede, K. R. (1998). The implementation stages of activity-based costing and the impact of contextual and organizational factors. Journal of management accounting research, 10, 239.

Cagwin, D., and Bouwman, M. J. (2002). The association between activity-based costing and improvement in financial performance. Management accounting research, 13(1), 1-39

Hair, J. F., Black, W. C., Babin, B. J., et al. (2006). Multivariate data analysis (6 ed.). New Jersey: Prentice Hall.

Madwe, M. C. (2017). Adoption of activity-based costing at Technical and Vocational Education and Training in KwaZulu-Natal (Doctoral dissertation).

Al-Sayed, M., Abdel-Kader, M. G., and Kholeif, A. O. (2008). ABC diffusion in the age of digital economy: the UK experience. International Journal of Management Accounting Research, 2(1).

Nassar, M., Al-Khadash, H., Al-Okdah, S., and Sangster, A. (2011). The implementation of management accounting innovations within the Jordanian industrial sector: the role of supply-side factors. European Journal of Economics, Finance and Administrative Sciences, 35, 72-85.