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Supply chain management, activity-based costing and organisational factors

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  • Askarany, Davood
  • Yazdifar, Hassan
  • Askary, Saeed

Abstract

In today's intense global competition, supply chain management (SCM) is as a vital tool for helping managers to improve productivity, profitability and the performance of their organisations. In doing so, SCM requires more accurate cost data regarding all activities and processes within the organisations. Given the above, activity-based costing (ABC) can significantly contribute to global supply chain management as it is suggested to fulfil the above requirements by providing more accurate, detailed and up-to-date information on all activities and processes in organisations. Contributing to the SCM and ABC literature, current study first identifies different types of improvements which ABC can offer to SCM and the performance of the organisations, then it examines the extent of association between business size as well as business industry (as organisational factors) affecting the adoption of ABC in New Zealand (NZ) through using a survey questionnaire and targeting NZ qualified CIMA members. To improve SCM and organisations' performance by increasing the adoption of ABC in organisations, one of the main implications of the findings is that the adoption of ABC in smaller firms needs more attention compared with the larger firms regardless of their industries (manufacturing versus non-manufacturing firms). However, when the decision is made to implement ABC, non-manufacturing firms (rather than manufacturing firms) need more attention to proceed with a higher level of adoption of ABC.

Suggested Citation

  • Askarany, Davood & Yazdifar, Hassan & Askary, Saeed, 2010. "Supply chain management, activity-based costing and organisational factors," International Journal of Production Economics, Elsevier, vol. 127(2), pages 238-248, October.
    • Handle: RePEc:eee:proeco:v:127:y:2010:i:2:p:238-248
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    3. Maria Isabel Pedro & Felipe Lopes Cabral, 2013. "A New Innovative Model Using RFID: A System Design and Its Implementation," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(2), pages 508-508.
    4. Yazdifar, Hassan & Askarany, Davood, 2012. "A comparative study of the adoption and implementation of target costing in the UK, Australia and New Zealand," International Journal of Production Economics, Elsevier, vol. 135(1), pages 382-392.
    5. Francesca Sgr? & Federica Palazzi & Massimo Ciambotti & Lorenzo Gelsomini, 2020. "Factors promoting and hindering the adoption of management accounting tools. Evidence from Italian manufacturing SMEs," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(Suppl. 1), pages 19-38.
    6. Burritt, Roger & Schaltegger, Stefan, 2014. "Accounting towards sustainability in production and supply chains," The British Accounting Review, Elsevier, vol. 46(4), pages 327-343.
    7. Mara Del Baldo & Anna Maria Arcari & Marcantonio Ruisi, 2019. "Controllo di gestione nelle PMI e consulenti esterni," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1 suppl.), pages 69-94.
    8. Nabil Bashir Al-Halabi & Omar Fareed Shaqqour, 2018. "The Effect of Activity-Based Costing (ABC) on Managing the Efficiency of Performance in Jordanian Manufacturing Corporations – An Analytical Study," Accounting and Finance Research, Sciedu Press, vol. 7(1), pages 262-262, February.
    9. Shu Feng & Chun-Yu Ho, 2016. "The real option approach to adoption or discontinuation of a management accounting innovation: the case of activity-based costing," Review of Quantitative Finance and Accounting, Springer, vol. 47(3), pages 835-856, October.
    10. Petchprakai Sirilertsuwan & Sébastien Thomassey & Xianyi Zeng, 2020. "A Strategic Location Decision-Making Approach for Multi-Tier Supply Chain Sustainability," Sustainability, MDPI, vol. 12(20), pages 1-37, October.
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    15. Askarany, Davood & Yazdifar, Hassan, 2012. "An investigation into the mixed reported adoption rates for ABC: Evidence from Australia, New Zealand and the UK," International Journal of Production Economics, Elsevier, vol. 135(1), pages 430-439.

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