By Adam S. Maiga
A review of prior research reveals mixed results with respect to the organizational performance achieved from both Information Technology (IT) integration and Activity-Based Costing (ABC). Drawing from information systems, accounting, marketing, and management literature, this study extends prior studies and uses structural equation modelling (SEM) to assess whether manufacturing plant IT integration impacts its extent of ABC use and whether there is a direct relation between both IT integration and extent of ABC use and plant performance, or whether both IT integration and extent of ABC use impact plant performance through low-cost and product differentiation strategies.
Overall, the results indicate support for the theoretical framework. Plant IT integration significantly affects the extent of its ABC use, and both IT integration and extent of ABC use significantly affect low-cost strategy and product differentiation strategy that, in turn, impact both market performance and profitability. Market performance is also found to significantly impact profitabilityContent reserved for CMA Australia members. Please log in to see the content. Your Username is your email address registered with CMA Australia. Your Password is you Member Id Number which starts from either MID/CID. This is printed on your certificate/renewal notice/invoice. You are required to input the full Id including MID/CID. User Name:_________________________ (your email address; e.g. email@example.com)Password: __________________________(your CID or MID number without spaces. e.g CID-003015)If you are having problems, members are requested to contact firstname.lastname@example.org to get log in details.