Exploration of Factors Influencing on Choice the Activity-Based Costing System in Iranian Organizations

Abstract

The findings of the previous studies found that ABC is easier to implement in mechanistic organizations (Anderson, 1995; Gosselin, 1997; Kallunki & Silvola, 2008; Liu & Pan, 2007). In the case of Company A, the organizational structure combines mechanistic, organic and integrated forms that support the implementation of ABC, especially during the design and implementation stages. The form of integration seems to be important to the implementation of ABC although it is not common to previous studies. Company A had a strong innovative culture which influenced this phase due the implementation of CSR. It can be seen that CSR had an influence on the implementation of ABC in terms of improving the employee’s working skills and the loyalty of employees. The key contingent factors which were found in this study are different from other studies which studied the implementation of ABC in developing countries such as China, Taiwan and Iran. Organizational structure (Liu & Pan, 2007), organizational strategy (Ahmadzadeh, et al., 2011) and organizational culture (Eldenburg, et al., 2010; Fei & Isa, 2010a; Lee, et al., 2010; Morakul & Wu, 2001) have been found to influence the implementation of ABC in developing countries.