The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance
Pengaruh Faktor Kontingensi Luaran dan Pelaksanaan Pengkosan Berasaskan Aktiviti ke atas Prestasi Organisasi

Department of Accounting
College of Administration and Economics
Mosul University, Mosul, IRAQ.

faeq_mahmood@yahoo.com

Tunku Puteri Intan Safinaz School of Accountancy
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

zarifah@uum.edu.my

Tunku Puteri Intan Safinaz School of Accountancy
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

hasnahk@uum.edu.my

Abstract

The Activity-Based Costing (ABC) system continues to gain attention due to the increasing challenges in the current business environment. This situation motivated the researchers to examine external contingency factors (environmental uncertainty (EU) and market orientation (MO)) that influence ABC implementation and the possible effects of ABC implementation on organizational performance. This study also examines the mediating effect of ABC implementation on the relationship between external contingency factors and organizational performance in a developing economy. A cross-sectional survey was conducted among 114 manufacturing companies in Iraq. The data was analyzed using PLS3-SEM, and the results revealed that EU and MO have a positive and significant effect on ABC implementation, and that ABC implementation has a positive and significant effect on organizational performance. Furthermore, this study establishes the mediating role of ABC implementation on the relationship between external contingency factors and organizational performance.

Keywords

ABC implementation; contingency factors; Iraq; organizational performance
https://doi.org/10.17576/pengurusan-2019-55-09

Citation

Mahmood Albalaki, F. M., Abdullah, Z. A., & Kamardin, H. (2019). The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance. Jurnal Pengurusan, 55, 111–124. https://doi.org/10.17576/pengurusan-2019-55-09

@article{albalaki2019influence,
  title={The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance},
  author={Mahmood Albalaki, Faeq Malallah and Abdullah, Zarifah and Kamardin, Hasnah},
  journal={Jurnal Pengurusan},
 

volume={55},
  number={},
  pages={111—124},
  year={2019},
  doi={https://doi.org/10.17576/pengurusan-2019-55-09},
  publisher={Penerbit UKM},
}

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55 (2019) 111 – 124

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