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The purpose of this chapter is to identify the most appropriate ways of defining the adoption and non-adoption of activity-based costing (ABC). This chapter uses the responses to a questionnaire survey of management accountants working in British manufacturing industry to test if there are differences across various definitions of adoption and non-adoption in the level of competition, product customization, manufacturing overhead cost percentage and operating unit size. When there are no significant differences between the groups making up each definition this indicates that the definition is appropriate and can be used to define adoption or non-adoption. The results of the research show that the only appropriate definition for ABC adoption is operating units that are currently using ABC. It is possible to define non-adoption in three ways as operating units that are not using ABC, but have considered it; those that are not using ABC, but have considered it except those intending to use it; and those that have rejected ABC, but have never adopted activity-based principles or have never previously used ABC. Comparisons between these two groups show that operating units that have adopted ABC are significantly larger than non-adopters, regardless of how non-adoption is defined. Prior research into the adoption of ABC has used a variety of definitions for the adoption and non-adoption of ABC without examining the appropriateness of these definitions. This chapter overcomes this deficiency by empirically testing the most appropriate definitions.

Purpose – The chapter examines the international welfare effects of biotech crop adoption, based on a transversal literature review and a case study of the introduction of genetically modified (GM) food crops in Bangladesh, India, Indonesia, and the Philippines.

Methodology/approach – The analysis is based on (a) a review of lessons from the applied economic literature and (b) simulations using an improved multimarket, multicountry, computable general equilibrium (CGE) model, calibrated with productivity hypotheses formulated with local scientists in the four Asian countries.

Findings – Results from the analysis show that, in the absence of trade-related regulations, GM crop adoption generates economic gains for adopting countries and importing non-adopters, that domestic regulations at adopters and especially non-adopters can reduce these gains, and that import regulations in other countries can also affect gains for exporting adopters. The case study illustrates these conclusions, but it also shows that net importers will mostly benefit from adoption in their terms of trade, and that segregation of non-GM crops for export markets can be beneficial if it is not too costly.

Research limitations/implications – The use of a CGE model allows for accounting for cross-sectoral effects, and for regulations affecting bilateral trade flows, but it also has a number of limitations. The model used here, like the ones used in the other papers in the literature, is static, based on an aggregated representation of the global economy (GTAP database), and assumes perfect competition. This means that the absolute results of each scenario may not perfectly represent the actual welfare effects engendered by the adoption of biotech crops. Still, what matters here is the comparison of the relative welfare effects across countries and scenarios. The simulations are also done ex-ante, so, even if the model here was calibrated with country-based data, the results do depend on hypothetical assumptions about the performance of the selected technologies.

Originality/value of the paper – The chapter aims to illustrate the welfare effects generated by GM crops for adopters, non-adopters, in a segmented and regulated international market. Unlike other papers, the review section provides key transversal lessons from the literature, accounting for results from both partial equilibrium and CGE model studies. The empirical application focuses on four populous Asian countries that have been largely left out of the literature. The model used in the simulation presents a number of improvement from the CGE literature on GM crops, including partial adoption, factor-biased productivity shock in each adopting country, GM labeling regulations modeled as trade filters, and the inclusion of costly non-GM segregation as observed in the international market.

Internal capital markets of diversified firms have been associated with inefficient allocation of investment funds across divisions, leading to value losses. Utilizing a sample of diversified firms that adopted or eliminated Residual Income (RI) plans between 1990 and 2009, we show that adoptions of these plans mitigate investment distortions and lead to value gains. Following the adoption of RI plans, diversified firms start allocating investment funds based on growth opportunities of their divisions. RI plan adopters lower their divisional investment levels, especially in segments with below-average growth opportunities. The overall investment allocation efficiency improves, and the diversification discount diminishes after the adoption of RI plans. However, RI plans appear to be used only as temporary tools for assessing corporate performance. The plans are adopted primarily by firms expected to immediately generate plan bonuses for management, and they are frequently eliminated by firms with bad accounting performance and low managerial bonuses. The study contributes to the literature on organizational efficiency, internal capital markets, and on the importance of measures based on economic profits or RI.

Despite the much publicised advantages of a website for SME exporters, the level of website sophistication, as well as the factors which inhibit or stimulate exporting SMEs to develop their website beyond a basic level of sophistication, are still unknown. The literature is prone to discuss website establishment and development simultaneously, splitting firms into adopters and non-adopters, yet websites may be established and then neglected, or be continually developed. This paper introduces an instrument for measuring website sophistication within an export marketing context, and proposes and empirically tests a model that depicts factors impacting on perceived advantages of a website and website sophistication levels. The results identify export diversity and environmental pressure as key determinants of perceived advantage of a website which in turn is a good predictor of website sophistication. The firm internal resources, i.e. Information and Communication Technology (ICT) knowledge and time, in conjunction with entrepreneurship orientation also determine an SME exporter's website sophistication level.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

This chapter aims to assess how effective loyalty programs are in contributing to retaining guests for hotels. The effectiveness is measured by means of a Bass model which allows the measurement of the diffusion patterns of adopters within potential adopters. The data used to perform this model allow the depiction of the effect of geographical localization over a time frame of three years. Results suggest that the loyalty card’s acceptance was measured from the internal and external parameters, based on the concept of diffusion theory. The results indicated a need for innovation of the loyalty program from 2019. Due to the existence of several hotels with different typologies in different countries, a segmentation of clients by nationalities is suggested with a “waterfall” strategy being placed in the hotel chain loyalty program.

Blockchain is creating many opportunities for business as it is transforming the way sustaining technologies operate in organizations. In blockchain, transactions are recorded as digital blocks and contain immutable properties to preserve data validation, encryption, and algorithms. The goal is to provide uniqueness and resistant to fraud. For example, digital currencies use a shared network to permanently record transactions but operate in decentralized mode to secure independence among participants. The potential applications of blockchain are unlimited and proliferating although several initiatives are still in development. Many industries are already capitalizing on experimental blockchain projects. Leaders in those industries are partnering with R&D and start-up companies to determine opportunities. Also, research universities have dedicated labs to focus on new theoretical concepts or improvements that can be leveraged in healthcare, global rights management, and decentralized publishing to name a few. Blockchain is called as “trustless system” because it can disrupt entire industries. This chapter explores the blockchain origins and its underlying technologies to understand concepts and become familiar with the latest development. A crypto-digital currency like Bitcoin will be introduced in some detail to bring awareness to the benefits, risks, and ethical concerns. A discussion on regulations will be included to investigate how government policy affects cryptocurrencies and related security. In the interest of blockchain inspired projects, the chapter will also introduce a broader discussion on new ventures adopting blockchain attributes and the trends of gradual technology implementation among early adapters.

Purpose – Since the introduction of the concept of the balanced scorecard (BSC) in the early 1990s, researchers and practitioners have been discussing its impact on managerial and organizational performance. However, there are still few empirical results available in favor of the effectiveness of the BSC to justify its high rate of diffusion among companies. The central aim of this paper is to substantiate the claim for more empirical studies on performance implications of BSC use and to derive recommendations how to conduct such research effectively.

Approach – We review existing research on costs and benefits of the BSC in order to pinpoint to the necessity to do more large-scale empirical work on this topic. Moreover, we discuss important methodological challenges researchers are confronted with when analyzing performance consequences of the system.

Findings – Empirical studies have found both, evidence in favor and against the BSC by investigating specific elements constituting the system. However, no large-scale empirical evidence exists so far that unambiguously shows that companies using a fully developed BSC outperform non-users. We argue in the paper that this might be explainable by the holistic nature of the concept and particularly the methodological difficulties associated with analyzing its effects on performance.

Contribution – The paper is supposed to motivate researchers to conduct more large-sale empirical studies in the area and offers recommendations how to effectively design such studies. It emphasizes the opportunities structural equation modeling offers to investigate possible indirect effects and moderating effects stemming from the BSC.

Purpose – The purpose of this paper is to examine the extent to which potential factors affect the use of activity-based costing (ABC) in a service context.

Design/methodology/approach – An empirical survey was conducted on a sample of 112 leading hotels enterprises in Greece.

Findings – Results show that the use of ABC is positively associated with business strategy and with chief financial officer's (CFO) educational background. In addition, ABC is negatively associated with CFO age. No association was found between the use of ABC and the quality of information technology, membership of multinational chain, and CFO tenure.

Research limitations/implications – This research was limited to the Greek hotel sector. Cross-sectional studies as the work presented here can establish associations, but not causality.

Originality/value – This paper adds to the limited body of knowledge of the design of cost systems in a service context (service cost system design). Specifically, this paper adopted a contingency approach and used empirical analysis to identify the influence of specific organizational variables and CFOs characteristics on the use of ABC in service firms. The operational homogeneity of hotels enables powerful tests of the research hypotheses.