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 study
The 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 HYPOTHESES

Two 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 Literature
The 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 implementation 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 Literature
Issues 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 nondirectional hypothesis:
H9: Preparers and users reported satisfaction with ABCM will significantly differ.
RESEARCH METHOD
Sample and Data Collection
Testing 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 storyboarding 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 Variable
Consistent 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 Variables
Each 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.
RESULTS
Descriptive Statistics and Diagnostics
Table 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 <.05) and preparer/user (r=.22. p <.10).
Significant correlations among several of the independent variables suggests the presence of
multicollinearity. To further test for the existence of multicollinearity, we performed a series of
additional tests. Training resources had the largest variance inflation factor (13), further
indicating that multicollinearity may be influencing the results of the OLS regression. A
condition index of 34 confirmed the presence of moderate multicollinearity. To reduce the
sensitivity of the model to multicollinearity, a ridge regression was performed (table 5) (BeIsley
et al. 1980). The ridge regression model had an adjusted R of .63 and is significant (F=7.66. p
<.0l).
Hypotheses Testing
In general, the test results provided strong support for the relationships predicted by Shields
(1995) and those of this study. All of the hypotheses, except H4, were supported. As predicted in
H1. the results indicated that a positive relationship exists between employees" satisfaction with
ABCM implementation and the perceived degree of top management support (=.15. p<.05).
Hypothesis two was supported by the finding that involvement in the implementation is also a
significant, positive correlate of satisfaction with ABCM implementation (=.11. p<.O5).
Consistent with H3, H5, H6 and H7, and the results of Shields (I995), our analysis supported the
predictions of positive relationship between satisfaction with ABCM implementation and the
degree to which objectives are clearly stated ex ante (= . 12. <.05), the linkage to performance
evaluation system (=.11. <.10), and the adequacy of training (=.11. p <. 10), and the
adequacy of training resources (=.14. p <05). Our results, however, did not support the positive
relationship predicted by H4 between individuals satisfaction with ABCM implementation and
the degree to which objectives are shared (=.06. p=.l9). As predicted by H8, the quality of
information produced by the ABCM system is a strong positive correlate of satisfaction (=.29. p
<.05). Our results also indicated support for H9, suggesting that preparers and users may view
ABCM implementation differently (=.29.p <.O5). Specifically, the results indicated that the
preparers had higher satisfaction levels. Finally, the significance of the dummy variable
representing Site 3 (=.36. p<.O5) indicates that reported satisfaction with ABCM

implementation for at least that one site differs from that of the other sites investigated in this
study.
SUMMARY AND CONCLUSION
Our results indicate that on average, the sample of 53 preparers and users of ABCM information
report moderately favorable satisfaction with the ABCM system implementations at their
respective sites. This paper contributes to the literature by verifying that. Shields [1995]
reported findings associated with managers perceptions of the success of ABC and the correlates
of that success are generally consistent with perceptions reported by users and preparers from
four sites. Top management support, the degree to which objectives are understood, the adequacy
of training and training resources, and the linkage of the ABCM system to performance
evaluation criteria are significant correlates of satisfaction with ABCM implementation.
Additionally, this research corroborates the relevance of situational and technical variables, such
as user involvement and information quality, to the implementation of ABCM. The significance
of these variables, after controlling for site level differences and the role of the individual,
indicate that the variance in satisfaction with ABCM implementation extends beyond
organizational-level differences. Individuals within the same organization may react differently
to the implementation. Equally important, the evidence suggests that even though these factors
generally are associated with implementation success, universal prescription of them may not be
warranted. Future research should seek to identify specific aspects of the implementation that
might lead to more favorable reactions to the system as well as the characteristics of the
organization and user that are most suitable to them.
Several limitations of this study should be considered in interpreting the results. Like Shields
(I995), the dependent variable is based on a single-item scale representing individuals
satisfaction with an ABCM implementation. A single-item measure is very coarse and cannot
adequately capture all of the aspects of this multidimensional construct. There is a need for
additional work directed toward constructing a more reliable multiple-item proxy for this
implementation construct. Furthermore, the construct used in this study assumes that individuals
intended to convey information concerning their satisfaction with the ABCM implementation
process. However, it should be noted that responses likely were influenced by individuals
perceptions of the outcomes of the implementation and/or
their reaction to the ABCM system. Limitations relative to the nature of the sample also are
inherent. First. the results are based on multiple observations from four sites. Therefore, care
should be taken in generalizing the results. Additionally, although no model of implementation is
complete, the small sample size precludes the examination of contingency relationships among
the variables. Future research should seek to examine the moderating effects of behavioral.
technical and situational variables on implementation success. In conclusion, our findings have
both practical and theoretical implications. First, future implementers of ABC-M systems should
be attentive to the motivational effects of incentives and the process of influence in the

organization. Further, managers who wish to maximize employees satisfaction with ABCM
implementation may benefit from choosing implementation procedures that allow users to
participate in the process. While the perceived need for goal congruence within the organization
may not be an issue that the users and preparers in this study relate to ABCM, the results indicate
that the power of goal-related variables may be attributable to the effectiveness of the
management information system in making goals clearer. It also is important for managers of
future ABCM implementations to note that while the quality of the information is very
important, it is not the sole determinant of satisfaction. No matter how technically competent the
system, its true potential will never be realized unless behavioral issues are effectively addressed.