The effect of contingency factors and activity based costing implementation on organizational performance in the Iraqi banking industry

• Main Author: Mahmood Al-Nuaimi, Safaa Ibrahim
• Format: Thesis
• Language: English; English; English; English
• Published: 2018
• Subjects: T58.5-58.64 Information technology; HD28-70 Management. Industrial Management; HD58.9 Organizational Effectiveness.
• Online Access: https://etd.uum.edu.my/9501/1/permission%20to%20deposit-95054.pdf; https://etd.uum.edu.my/9501/2/s95054_01.pdf; https://etd.uum.edu.my/9501/3/s95054_02.pdf; https://etd.uum.edu.my/9501/4/s95054_references.docx; https://etd.uum.edu.my/9501/

Activity-based costing (ABC) implementation is dependent on some contingency factors which includes structure, culture, information technology and the intensity of competition of the organization that are willing to implement ABC. Meanwhile, there has been consistent pressure on improving the performance of the banking sectors which has brought about studying ABC implementation among Iraqi banks. Therefore, this study examines the effects among contingency factors (organizational culture, organizational structure, information technology (IT) and competition), ABC implementation and organizational performance. The research framework was developed based on contingency theory. Data were collected via self-administered questionnaires distributed to branch managers, chief accountants and account managers from 402 bank branches in Iraq. The analysis of data is based on 270 respondents that yielded a 67.1% response rate. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results revealed that there is a significant relationship between organizational culture, IT, competition and ABC implementation. The results also showed that there is a significant relationship between ABC implementation, IT, organizational structure and organizational performance. Finally, the findings of this research demonstrates that ABC implementation has a significant mediating role in the relationship between organizational culture, IT, competition and organizational performance. In conclusion, this study empirically confirms the theoretical argument of the contingency theory with regards to the association among contextual factors and organizational performance. Hence, this study provides insight on the significance of contingency factors namely; organizational culture, IT and competitive environment that are important for ABC implementation and enhancement of banking performance in Iraq. The findings of this research provide insights on how to improve financial and nonfinancial performance of banks in Iraq through the implementation of ABC. Significantly, this study opened the possibilities for further research on ABC implementation and organizational performance of banks in Iraq and other developing countries.