Sebuah system activity based cost management adalah menganjurkan secara luas sebagai key tool untuk improving behavioral.business and accounting practicesm in organizations. Advocates of ABCM or ABC cite many benefits of such systems and numerous companies are implementing them. How ever. The literature related to ABC and ABCM largely is normative and the validity of benefit claims are not yet firmly established. In facat, some of these claims are being seriously challenged (Johnson 1992)This study empirically examines employees satisfaction levels associated with ABCM implementation and their perceptions of the factors associated with the degree of satisfaction at four implementation sites. The diversity in opinions over efficacy of ABCM and the lack of empirical evidence to support those opinions support the need for studyThe management informations systems, organizational change and implementation literatures provide valuable insights into factors that generally contribute to implementation success. The measures of success methods and results in these study vary. Furthermore, these studies tend to focus on outcomes associated with a variety of information systems within organizations. Taken together, they suggest that system success is related to user characteristics and technological and situational factors. These studies highlight the importance of determining how particular systems fit into the work role and the unique needs of individual users. Our study contributes to the existing literature by focusing on preparers and users perceptions of the implementation of an ABCM system. We focus on satisfaction (an attitudinal measure) rather than other measures of implementation success. because, at a practical level. users attitudes towards the system may inuence their subsequent behavior relative to it. Therefore. satisfaction is a very important determinant of implementation success (Cerullo 1980).Shields (1995) presents a comprehensive behavioral model that. suggests that the fate of ABC depends on how well it matches the preferences, goals. strategies. agendas. skills and resources of employees and top management. Our study extends this model beyond top management by using a survey to obtain information on the perceptions of 53 system preparers and users. in several functional areas. at four sites. We also extend Shields (1995) model by including additional technical (quality of output) and situational variables (user involvement) because they were found to have explanatory power in prior implementation studies. Finally. While Shields (1995) focuses specifically on managers perceptions of the suecess of the ABC system itself, the focus of our study is satisfaction with the implementation of ABCM.The conclusions drawn from the hypotheses tested in this study help us to understand the conditions which lead to successful ABCM implementation. The results also indicate the importance of users perceptions in implementing successful ABCM systems. User satisfaction may affect behavior and. consequently. the success of a system change. Therefore. It is important to identify the specific factors that users perceive to be important in the implementation process and to identify characteristics of the users that are amenable to successful implementation. Our study pro vides evidence on these issues. The model presented in this paper was developed from both the accounting and management information systems implementation literalures. The next section contains a brief review of each literature as it relates to the development of the model and the related hypotheses. The research methods. including variable definitions. follow. Data analysis and conclusion are presented in the final section.

THEORETICAL DEVELOPMENT AND HYPOTHESESTwo streams of research are relevant to the issue addressed in the current study. Prior literature related to the consequences of ABCM im plementation. although limited. provide a partial foundation for our model. This literature indicates that there is a need to learn more about users reactions to ABCM implementation and to verify the empirical evidence that currently exists. The second line of research concerns system implementation. This literature provides the basis for the measurement of variables and helps identify ways to extend our current knowledge of user satisfaction with ABCM implementation.Activity-Based Cost Management LiteratureThe results of several case studies that document the implementation process indicate that organizations benefit from ABCM implementation. For example. Haedicke and Feil (1991) describe Hughes Aircraft Company's experience with implementing ABC and how the switch assisted management at Hughes in achieving world-class management. Bailey (I991). Innes and Mitchell (1991). and Nicholls (1992) mailed questionnaires to managers of UK. firms and report positive findings relative to the benefits and future of ABC. Foster and Gupta (1990) examined the implementation of an ABC system by an electronic instruments manufacturing facility. They present information concerning the attitudes of employees and managers toward the ABC system. but concluded that the system had not been in place long enough to assess its behavioral consequences. Bhimani and Pigott (1992) examined the impact of changing the pattern and content of information on the behavior of non accounting staff at a British pharmaceutical company. Their results indicate how management accounting techniques can extend beyond their intended technical use and can be used to break down functional barriers. Using ABC as an example, Argyris and Kaplan (1994) describe the necessary requirements for successful im- plementation of a technical innovation. They focus on the importance of education and sponsorship in enabling change to occur. Finally. Anderson (1995) presents a case study of General Motors Corporation's experience with the adoption of ABC. She develops a model of cost system change that describes the effect of individual characteristics. and organizational. contextual and technological factors on the success of ABC during six stages of implementation. Anderson (1995) study provides a fruitful foundation for the direction of future studies of the success of activity based systems.Survey research also has contributed to our understanding of the impacts of ABC and ABCM implementations. Swenson (I995). for example. presents the results of a telephone survey of 50 nancial and operating managers satisfaction with ABC at 25 manufacturing firms. The results indicate that. participants view ABC as an improvement over their old cost management systems. Shields (1995) reports the results of applying a comprehensive model to the study of the behavioral consequences associated with ABC. He concludes that attending to the technical aspects oiABCM implementation is not sufficient to achieve general success with ABC implementation. His conclusion highlights the need to focus on behavioral and organizational variables in the implementation process. Libby and Waterhouse (1996) examine the relationship between changes in management accounting and control systems (MACS) and several organizational and contextual variables at 24 Canadian organizations. They present evidence of a strong positive relationship between changes in MACS and organizational capacity to learn. operationalized in terms of the number of existing MACS in the organization. The results were not consistent with the hypotheses that change in MACS is associated with the intensity of competition. degree of decentralization. or the size of the organization. Libby and Watcrhouse (1996) conclude that their results support the contention that learning and change occurs with experience and that change is incremental rather than revolutionary. The implementation literatures from accounting. management information systems. and organizational change provides the foundation and motivation for the behavioral. technical, and situational variables included in our model. Table l provides a summary of both the ABC and implementation literature that supports the model. The table indicates the dependent and independent variables investigated in each study. Implementation LiteratureIssues associated with implementations can be studied at two levels of analysis: an organizational (macro-level) approach or an individual (micro-level) approach. Guidelines derived from the macro-level perspective generally emphasize the importance of planning and development to achieve organizational objectives. The emphasis may be on users as a group or subsystem of the organization. Shields (I995). Swenson (1995) and Anderson (1995) address the implementation of ABC from this perspective.Macro-level studies of ABC implementations have revealed several interesting findings. First, the evidence suggests that managers, in general, view ABC systems more favorably than their predecessor systems (Shields 1995; Swenson 1995). Secondly. the degree of success with ABC implementation may vary across circumstances. In particular, Shields (1995) found ABC success to be strongly correlated with behavioral and organizational variables but not with technical variables. such as the type of software or the nature of the system. Anderson (1995) argues that the factors which influence ABC implementation are context specific. She concludes that the extent to which specific organizational and technological factors. Individual and task characteristic, and environmental factors influence implementation success vary across the stages of the implementation process.At the micro level, the research focus is on the individual rather than the organization. Intended benefits may be defined in terms of enhancing decision-making skills (DeSanctis 1984), productivity. or use (Robey 1979: Kim and Lee 1986) of the system. System success also may be measured in terms of perceptions of improvements in system quality (Bailey and Pearson 1983; Lucus 1978). in attitudes (Gibson 1975: Schultz and Slevin 1975), or in the satisfaction levels of individuals involved (Tait and Vessey 1988; Mclieen et al. 1994). The current study adopts the micro approach as we are primarily interested in determining how the ABCM system fits into the Work role and unique needs of an individual user. While changes in decision making and use patterns constitute behavior changes. Satisfaction is an attitude toward the system change. Cerullo (1980) points out that from a practitioners perspective users satisfaction may be the most important success factor because it will drive changes in decision making and use patterns.Implementation research can be further characterized as factor or process studies (Schultz and Ginzberg 1984). The focus of factor research is on the contextual variables associated with an implementation and the likely impact of these factors on success. The contextual variables include the characteristics of an organization. Problem, technology and people involved in the implementation efforts. For example, attitudes toward management information systems have been shown to be associated with system use and several other measures of implementation success (Gibson 1975). In contrast, process research focuses on the procedures involved in system implementation. The goal is to identify characteristics of a process that are most likely to lead to successful implementation. Implementation is viewed as a sequence of stages that must be attended to achieve success. Vertinsky et al. (I975) developed a model in which personal factors. such as managerial style, past experiences, Perceptions, abilities, self-esteem , as well as organizational factors (quality of designer-user interaction and organizational change), are posited to play a role in determining use. Use in turn, affects performance, which ultimately impacts payoffs to users. Our paper, like Vertinsky et al. (1975), integrates variables from both process and factor research into one model. Exhibit I presents a diagram of the relationships investigated in this study. The model indicates that characteristics of the implementation process (top management support, user involvement in the implementation, perceptions of the clarity and ex ante statement of objectives, the degree to which objectives are shared, the adequacy of training and training resources), the characteristics of the system itself (extent to which the performance evaluation system is linked to ABCM and the perceived quality of information produced by the system), and the individuals characteristic (preparer or user), will influence their perceptions, measured in terms of satisfaction with ABCM implementation. These factors, when managed together, may contribute to reducing resistance and improving the chances of a successful implementation. Dummy variables also were included to control for site-level differences. Many of the variables used in the current study are rooted in the basic framework of Shields and Young (1989). The model depicts ABCM implementation as an administrative, rather than technical, innovation. According to Shields (1995), support from top management provides the vehicle through which resources are controlled, goals are set and monitored and political forces are generated to support the innovation. The theory of organizational change recognizes the role of top management support in helping to create a suitable environment for change (Manley I975). Schultz and Ginzberg (1984) suggest that a manager's support of a system influences users personal stakes in the system. Further. Doll (1985) indicates that strong support from top management may increase the appreciation of others for the potential contribution of the system to meeting the needs of the organizational unit. Consequently, employees who perceive strong support for the Al-KIM system by top management may be more likely to view the change favorably. Accordingly, we test the following hypothesis:H1: Employees satisfaction with ABCM implementation is positively related to their perceptions of top management support.Manley (1975) concludes that personal involvement in the implementation also is very important. User involvement is participation in the development and/or implementation of the ABCM system by members of the target user group. User participation has been suggested as a method to improve satisfaction by: providing a more accurate and complete assessment of user information requirements (Robey and Farrow 1982); providing expertise about the subgroups of the organization that the system is intended to support (Locus 1975); improving user acceptance and understanding of the system (Gibson 1975); and fostering system ownership by the users (Lucus 1975).Unfortunately, the significant influence of user involvement on implementation success is not consistently supported in the literature. in a review of the research related to user involvement. Ives and Olsen (1984) report that eight studies found a positive relationship between user involvement and various measures of system success while seven studies reported insignificant or ncgat.ive results. It is possible that despite user involvement, the actual system performance may not fit users needs or expectations. Although the issue of involvement has received a great deal of attention, there is no clear theory as to the specific contexts in which involvement results in positive outcomes. The implementation of ABCM provides an interesting opportunity to study this issue given the range of implementation tactics undertaken by adopting firms. These implementation procedures, as discussed later, require varying degrees of participation. User involvement in the implementation of ABCM may promote the development of realistic expectations about the project and reduce resistance to the change. As suggested by Robey and Farrow (1982). Users that participate in the implementation process may be better able to control important outcomes by confronting those in control of their needs and resolving differences constructively. This in turn, will lead to greater acceptance, and ultimately greater satisfaction (McKeen et al. 1994}. Consequently, we posit the following hypothesis:H2: Employees satisfaction with ABCM implementation is positively related to the their degree of involvement in the implementation process.

Consensus and clarity of objectives are both important features of our model because they help to ensure efficient design and effective use of the information system. Shields and Young (19891 point out that the commitment of management and employees is crucial to the development of a philosophy of improvement. For such a change to occur, the goals of the enterprise must be effectively communicated and received with commitment. Robey (1979) concludes that task performance increases either in direct anticipation of goal achievement or because of expected rewards, as goals become clearer. Schultz and Ginzberg (1984) point out that, if the goals of the system are in line with the organizations goals, the managers will be more likely to accept the system. Furthermore, congruence between user's goals and those of the organization more likely will lead to achievement of both sets of goals. Under these circumstances, acceptance and satisfaction will be greater. To examine the relationship between satisfaction with ABCM implementation and consensus and clarity of goals, we test the following hypotheses:H3: Employees satisfaction with ABCM implementation is positively related to their perceptions of the clarity and ex ante specification of the objectives of the implementation.H4: Employees satisfaction with ABCM implementation is positively related to their perceptions of the extent to which implementation objectives are shared in the organization.Tait and Vcssey {I988} argue that the internal constraints of an organization, such as availability of trained manpower and funds. influence the impacts of an organizations projects. Training in addition to providing a stepping stone toward the efficient use of the information provided by the system, is vital in promoting acclamation to the system. Sufficient training resources also must be available to prevent employees from feeling pressured or overwhelmed by the implementation process (Shields 1995). If resources are insufficient, then normal development procedures may not be undertaken, thus increasing the risk of failure. We expect our results to support. Shields (1995) finding of positive relationships between these variables and successful implementation. Hypotheses five and six describe our expectations of these relationships in an ABCM environment;H5: Employees satisfaction with ABCM implementation is positively related to their perceptions of the adequacy of training they received for the ABCM system.H6: Employees satisfaction with ABCM implementation is positively related to their perceptions of the adequacy of resources for the ABCM project.Results of prior studies of organizational change indicate that the linkage of the information system to the performance evaluation system provides the motivation for employees to use the information produced by the system. Govindarajan and Gupta (1985. 53) indicate that the most common finding in the literature is that "when an individuals rewards are tied to performance along a certain criteria, his or her behavior would be guided by the desire to optimize performance with respect to those criteria." Schultz and Ginzberg (1984) and Agyris and Kaplan (I994) indicate that not all systems are of equal importance to users. They suggest that the degree to which a user's persona] stake [e.g.. rewards} are linked to the system will affect his or her behavior and/or attitude toward the system. Studies based on expectancy models have shown that individuals are more likely to use an information system when they believe that rewards are contingent on this behavior (DeSanctis 1984). Spitzer (1964) found a positive correlation between employees contribution to cost reduction and their perceptions regarding the degree to which the achievement of cost reduction would result in pay increases. Consistent with the findings of Shields U995), we expect such a relationship to exist within the context of ABCM implementation, Individuals who believe that reward contingencies are associated with the successful implementation of ABCM are expected to be more motivated to work toward accomplishing that goal. As a consequence, it is reasonable to expect that satisfaction will be greater in this environment. We examine this relationship relative to the following hypothesis:H7: Employees satisfaction with ABCM implementation is positively related to the extent to which they perceive the system is linked to the performance evaluation system. Motivation for the next. hypothesis comes from studies in both the management information systems and the organizational change literatures. Lucus (1975) developed a descriptive model that includes users perceptions about the quality of the information produced. Delone and McLean (1992. 97). in an extensive literature review, point out that "researchers investigating factors associated with implementation success, may use satisfaction as their primary measure without recognizing that information quality may be highly variable among the systems being studied." Variations in reported satisfaction with ABCM implementation are expected to result. at least in part. from the differing quality of the outputs of the systems. Consequently, we test the following hypothesis: H8: Employees satisfaction with ABCM implementation is positively related to their perceptions of the quality of information produced by the ABCM system. Finally, prior research has reported associations between various user characteristics and attitudinal determinants of implementation success. Level of education and experience (Lucius 1975). age (Fuerst and Cheney1982), personality and cognitive traits (DeSanctis I984; Vertinsky et al.1975} and role involvement (Zmud and Cox 1979: Kim and Lee 1986; MeKeen 1994; Anderson 1995) are among the variables included in prior implementation studies. To gain insight into the impact of the individuals roles on the success of ABCM implementation, we include a dummy variable that distinguishes the preparers from the users in our sample.Zmud and Cox [1979] point out that while role specifications may indicate various levels of involvement, the primary intent of their inclusion is to specify where accountability lies. Individuals attitudes toward a change may be associated with their desire to make a difference and the intrinsic value that they place in the new cost management system for driving that change. Anderson (1995. 31] indicates that individuals reactions to a change may be related to their role involvement. which she defines as "the centrality of the proposed solution to the individuals jobs, their authority and responsibilities." She concludes. However, that this positioning may have both positive and negative effects. Alternatively, with the implementation of an ABCM system, preparers may have additional burden because their understanding of other functional areas may become as important as their technical competence. Given the potential dual nature of this particular operationalization of the role variable, we offer the following non-directional hypothesis:H9: Preparers and users reported satisfaction with ABCM will significantly differ.RESEARCH METHODSample and Data CollectionTesting the hypotheses concerning the correlates of user and preparer satisfaction required us to identify and interview individuals involved in an ABCM implementation. Summary proposals were sent to 14 targeted sites. Representatives of nine of the l4 sites responded to the proposal, five of which initially agreed to participate in the study. One of the sites eliminated itself before the data was collected, citing the demands of an unforeseen organizational change. The four participating sites are all in the Southwestern United States. Three sites are manufacturers and one is a service organization. All four sites used the information from their ABC system for product costing and process redesign, with varying degrees of emphasis on performance measurement and evaluation. At the time of the study, activity-based information had been in use at all four sites for at least one year.Site 1 is a service company that offers a full line of specialty risk management services including claims. loss prevention and other administrative services. The implementation of ABCM at Site l was handled primarily by an implementation team composed of management informat.ion system personnel and managers. Interviews were used to collect the necessary implementation data. Aside from the members of the team, employees had little Involvement beyond responding to the interviewers questions and completing questionnaires. On a time line ranging from O (no work completed) to 10 (implementation complete), the average level of completion reported by the respondents was 4.5. An initial interview with top management revealed that the implementation was about 50 percent complete and there were no plans to directly link the system to the performance evaluation of employees. The firm was under increased pressure from regulators, and increasing profitability was the primary goal of the ABCM system. The ABCM system provides management with detailed information about the eosts of services by profit centers and line of business, and helps target profitable opportunities.Site 2 is a division of a major semiconductor manufacturer. The parent company is a global competitor that produces thousands of products, and serves several large, growing, and interrelated markets. The implementation of ABCM was conducted using a cross-sectional story-boarding procedure in which all functional areas participated and interacted. An external consultant headed up the project along with a cross-functional steering committee. Management at Site 2 began with a focus on process improvements. The model developed in the implementation is used to identify and eliminate duplication and waste, as a basis for prioritizing improvements, and as a basis for shaping technology maps. The development of a comprehensive product costing system was viewed as an important by-product. Respondents on average report the level of completion was 6.4.Site 3, a wholly-owned subsidiary of a Fortune 100 company, specializes ln the production of personal and medical care products for use in surgery and medical examinations. The primary customers are hospitals and other health care providers. Similar to Site 2, the implementation of ABCM at Site 3 was undertaken using a cross-functional story-boarding approach with an external consultant heading a conglomerate of work teams. After failed attempts with other approaches (interviews and train-the-trainer), participants view the story-boarding process as a success, and report, on average, an 8.9 level of completion. The ABCM system is characterized in terms of its focus on quality improvements and pricing with a long-run focus on maintaining a leadership posit.ion in the market through price competition. Site 3 also relies heavily on their VAX-based ABCM system to provide information for performance evaluation. Use of the old cost management system, however, had not been completely discontinued at the time of data collection. The data from the old system was used primarily for inventory valuation and comparison purposes.Site 4 is a direct-mail catalog company offering greeting cards, Gift wrap, and small gifts to individual customers. The company manufactures the majority of the paper products and imports many of its specialty gift items. ABCM implementation was handled primarily by external consultants with the firm's accounting manager championing the implementation. Managers rely heavily on the information produced by the ABCM system as a basis for making aggressive marketing decisions, price competition and leading-edge product design. Because of the informal atmosphere and the company's philosophy of relying on employee pride to promote quality, the ABCM system is not used as a basis for performance evaluation. Site 4 makes extensive use of non-financial performance measures in managing operations, many of which are produced and monitored informally. With respect to the objectives set for the implementation, respondents reported an average 8.0 level of completion. Modifications will be made as necessary.Data collection at each of the four sites began with interviews with members of top management. Initial interviews helped to identify self reported "champions." "resistors." "sponsors" and "beneficiaries" in each unit. This selection process insures that the research results incorporate the views of a variety of employees. Champions introduced the possibility of adopting an ABCM system or voiced initial support for its implementation. Resistors initially came out against the adoption. Sponsors are individuals in each division with a direct involvement in the implementation process. Finally, beneficiaries are individuals who would benefit from the change.A description of the sample is in table 2. Fifty-three employees and managers from the four sites, representing a variety of functional areas, completed the questionnaire. The sample was comprised of l1 preparers and 42 users. Since all questionnaires were administered in person, respondents were allowed the opportunity to expand on their responses.Dependent VariableConsistent with the prior research on satisfaction with information system implementation, we used a single-item scale intended to measure individuals satisfaction with their respective ABCM implementations. Participants were asked to rate their degree of satisfaction with ABCM implementation on a five-point scale that ranged from l=strongly unfavorable and 5=strongly favorable (see appendix).Independent VariablesEach respondent was asked to rate their perception of eight independent variables (see appendix). These variables were support of top management. the respondents involvement in the implementation process, the degree to which objectives of the implementation are clearly stated ex ante, the degree to which objectives are shared. the adequacy of training for the implementation and use of the system. the adequacy of training resources, the linkage of the performance evaluation system to the ABCM initiative, and the quality of the information produced by the ABCM system. Responses were solicited on a five-point scale which ranged from 1=strongly disagree to 5=strongly agree for the first seven variables. Scale anchors for the quality of information ranged from 1=very low to 5=very high. The role variable was operationalized using a dummy variable, coded one for preparers and zero for users. A number of factors, other than the variables discussed previously, may cause the results of ABCM implementation to differ across the four sites? Organizational structure and environment (Bean et al. 1975; Robey 1979; Mckeen et al. l99-4), and stage of implementation (Bean et al. 1975; Kim and Lee l986; Robey and Farrow I982; Anderson 1995) are among the long list of potential site-level influences. Consequently, dummy variables were included to control for the effect of site on satisfaction with ABCM. Site 2. the semi-conductor manufacturer, served as the reference group.RESULTSDescriptive Statistics and DiagnosticsTable 3 reports descriptive statistics for each variable. The mean reported satisfaction level was 3.93, indicating that, generally, users and preparers in this study were moderately satisfied with ABCM implementations. Mean responses for all of the independent variables except the quality of information fell in the general range of 3.0 to 3.6, indicating that respondents perceptions ranged from neutral to agreement. Respondents on average indicated, that ABCM systems produced high-quality information (mean=-4.08).Table 4 contains a Pearson correlation matrix for all of the variables. Seven of the nine independent variables were significantly correlated with satisfaction [p 4.01): top management support, r=.42; involvement. r=.48: objectives understood. r=.-43; objectives shared. r=.30: training, r=.46: training resources, r;.56; and information quality. r=.69. Two other independent variables were also significantly correlated with satisfaction: the degree to which the system is linked to the performance evaluation system (r=.22. p