This presentation was done in June 2014 by one of our participants in ICST and ICBELSH conferences.

1. TheImpactofNon-AccountingOwnershipand
TopManagementSupporton(ABC)Adoption
amongIndustrialCompaniesinJordan:Proposed
ConceptualFramework
GlobalResearch&DevelopmentConference
Mohammad Farouq Hussein Jebreel
Universiti Sains Islam Malaysia (USIM)
jebreelmohammad@yahoo.com
Dr. Nathasa Mazna Ramli,
Universiti Sains Islam Malaysia (USIM)
nathasa@usim.edu.my
Dr. Nur Hidayah Laili,
Universiti Sains Islam Malaysia (USIM)
hidayah@usim.edu.my

2. Introduction
• Many changes in organizations are direct
consequences of the diffusion of innovations.
Although management accounting history is
not rich in such innovations (Johnson &
Kaplan, 1987; Malmi, 1999.
• The spread and usability of ABC systems has
proved it to be the ultimate management
accounting method for all businesses seeking
to find an accurate measure of their overhead
allocations (Valanciene & Gimzauskiene,
2007).
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3. ABC is an accounting technique that allows an
organization to assign costs to products based on
the resources they consume. It recognizes the
causal relationship between cost drivers and cost
activities by measuring the cost and performance
of process-related activities and cost objects
(MacArthur 1996).
ABC Concept
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4. Majority of the research work has been done in the
field of ABC adoption especially with reference to the
U.S.A. and the U.K while very little studies were
conducted in developing countries.
Review of the literature has revealed that very little
efforts have been made to determine the ABC
adoption especially with reference to Jordan context.
There is no sufficient studies have been conducted on
Jordan industrial sectors organizations .
Significant of Research
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5. 6/29/2014
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Level OF ABC
Adoption
Country Year Percentages Industryservices
Poor Jordan 2011 36.5% Jordanian manufacturing companies
Poor Malaysia 2010 36% manufacturing organizations in Malaysia,
Good Greece 2010 60% Manufacturing and services
organizations in Greece
Good USA 2008 49% Members of IMA
Good UK 2000 48% Large companies
Average Australia 2004 42% All Business units in Australia
Average Swedish 2004 40% Manufacturing firms
Average Norway 1997 40% Manufacturing industry

6. Literature Review
• Activity based costing system play an important role in
offering timely and exact important information to
managers. (BABAD, 1993).
• Hence, they can make better decisions on business,
which helps their firms achieve superior advantages over
competitors. (Fie, Z and Isa 2010).
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7. Cont….
• ABC is an attitude providing accurate and helpful
information that has direct effects in planned
decisions about a company’s fees, fertility
analysis, customer-relationships, supply
channels, employee management and
production rules.(Al-Khadash, H. and Feridun, M.
2006)
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8. Theoretical Framework and
Hypothesis Development
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H1
H2

9. • When ABC is owned only by accountants, there is
a danger that it might be used only to satisfy their
needs. An important reason why some companies
have not had good implementation experiences is
that the accountants have retained ownership and
have not succeeded in sharing ownership with
non-accountants
Non accounting ownership
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10. Top management support
• Defines as “the senior executives’ favorable
attitude toward and explicit support for
information systems”(Yap, 1989). Managerial
commitment is defined as "engaging in and
maintaining behaviors that help others achieve
a goal”(Cooper, 2006).
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11. Hypothesis Development
• H1:The Non-accounting ownership is positively
related to ABC adoption among Jordanian listed
Industrial and services companies.
• H2: The top management support is positively
related to ABC adoption among Jordanian listed
Industrial and services companies
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12. Conclusions
• Prior research test the relationship between ABC
success and many factors such as behavioral and
organizational variables.
•
• This paper intends to investigate the roles of the
ABC successes factors on ABC adoption among
industrial companies listed on the Amman Stock
Exchange (ASE).
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13. Cont..
• The study serves as a wake-up call for reforming
the management in Jordan. To achieve this
characteristics are proposed, namely, Non-
accounting ownership, top management support .
• on the other hand the two hypotheses are
developed to validate the hypothesis survey
research will be undertaken.
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14. Thank you
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