![]() Drury and Tayles (2005) examined UK organisations’ complexity of product costing system design choices and the extent to which potential explanatory factors influence the level of complexity of product costing system design choices in UK companies. The rate of adoption had declined marginally, and a statistically noteworthy increase was detected in those not presently considering ABC. They studied changes that occurred with the adoption of ABC and the status of users in companies over a five-year period, concluding there were important changes between 19. (2000) reviewed the results of two UK-based surveys of ABC adoption in the UK’s largest companies. They compared the use of ABC by local companies to multinationals, finding that ABC was comparatively underused. (1999) analysed the adoption of ABC in Ireland. In contrast, Sohal and Chung (1998) note that difficulties with the introduction of ABC are correlated to managerial traits rather than technical issues and features. ![]() It was found that unsuccessful ABC implementations could be due to an emphasis of architectural and software design. Shields (1995) studied the relationships between successful ABC implementation and technical, behavioural and organisational factors. Specifically, this paper explores why firms do not change from their existing costing system to a more advanced costing technique, namely, ABC. This paper explores reasons why adoption of ABC did not increase, based on a survey of Irish firms. When combined with the lower costs of IT, it could be expected that the adoption of ABC would increase. Given these economic conditions, it is postulated that firms have had to access their product and service costs and thus may have adopted more advanced costing techniques like ABC. (2011) mention that the recent global recession has affected all countries. Libby and Waterhouse (1996) for example noted how economic change influenced the development of new management accounting systems and, more recently, Giannone et al. Similarly, since 2008, the economic condition of organisations has changed due to recession. However, much of this research pre-dates the advent of technologies such as cloud computing – which can decrease IT costs and thus potentially increase usage ( Strauss et al., 2014) – and the huge leaps in technical progress in the past 10-15 years Thus, an examination of how IT developments have impacted ABC adoption is timely. ![]() There is an extensive body of literature within management accounting discussing IT as a driving influence on the discipline ( Burns et al., 1999 Granlund and Malmi, 2002 Russel and Siegel, 1999 Scapens and Jazayeri, 2003 Scapens et al., 2003). The consequences of rapid changes in contemporary information technology (IT) and the consequences of the recent and current economic climate have added an interesting dimension to any organisational research, and it is suggested in this study that this may also apply to the adoption of more advanced management accounting technique such as ABC. Some of these studies mention reasons for non-adoption, including technical and organisational issues – see the literature review later. Much has been written on the implementation and adoption of activity-based costing (ABC) in various settings and countries. The full terms of this licence may be seen at Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. ![]() Published in the PSU Research Review: An International Journal. Copyright © 2017, Martin Quinn, Otman Elafi and Mark Mulgrew.
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