Activity-Based Cost Management and Manufacturing, Operational and Financial Performance: A Structural Equation Modeling Approach
Advances in Management Accounting
ISBN: 978-0-7623-1387-7, eISBN: 978-1-84950-471-3
Publication date: 8 June 2007
Abstract
This study uses structural equation modeling to investigate the impact of ABC implementation factors (management support, clarity and consensus of ABC objectives, non-accounting ownership, and training) on quality, cost, and cycle time improvements, the relations among quality, cost, and cycle time improvements and, the influence of quality, cost, and cycle time improvement on financial performance at the business unit level. Overall, the results of the structural analyses support the theoretical model indicating that ABC implementation factors influence quality, cost, and cycle time, and partial support for the relations among quality, cost, and cycle time improvement and their effect on financial performance. When these relationships are further analyzed within the context of ABC implementation stage, adoption of advanced manufacturing practices, industry characteristics and plant size to determine if these contextual factors impact the model constructs and the relationships between the variables in the theoretical model, the results show that these contextual factors do not affect the model constructs, however, they affect the model relations.
Citation
Maiga, A.S. and Jacobs, F.A. (2007), "Activity-Based Cost Management and Manufacturing, Operational and Financial Performance: A Structural Equation Modeling Approach", Lee, J.Y. and Epstein, M.J. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 217-260. https://doi.org/10.1016/S1474-7871(07)16008-1
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited