Adoption of activity management practices: a note on the extent of adoption and the influence of organizational and cultural factors

We examine the extent to which activity management practices are adopted by Australian business units at each of Gosselin's [Gosselin, M., 1997. The effect of strategy and organizational structure on the adoption and implementation of activity-based costing. Acc. Organ. Society 22 (2), 105–122] levels of Activity Analysis, Activity Cost Analysis and Activity-based Costing. We also examine the association between extent of adoption and the organizational factors of size and decision usefulness of cost information, and the business unit culture dimensions of innovation, outcome orientation, and tight versus loose control.Data were collected by mail survey questionnaire of a random sample of business units, with questionnaire design and distribution based on Dillman's [Dillman, D.A., 2000. Mail and Internet Surveys: The Tailored Design Method. John Wiley & Sons Inc., New York] Tailored Design Method. Adoption rates are found to be higher than in prior studies, suggesting the continuing relevance of activity management practices and the advantage of using Gosselin's (1997) levels. All factors were found to be associated with all activity management practices. In particular, business unit size and all three business unit culture dimensions were found to be associated with extent of adoption of Activity Analysis (AA) and Activity Cost Analysis (ACA), while decision usefulness and the cultural dimensions of outcome orientation and tight versus loose control were associated with Activity-based Costing.  

The association between organizational culture and the use of management initiatives in the public sector

This paper examines the association between five factors in O'Reilly et al. (1991) Organizational Culture Profile and the use of Activity Management (AM), Total Quality Management (TQM) and Employee Empowerment within public sector organizations. The results show that the use of AM and TQM is lower in public sector organizations than in their private sector counterparts, and is facilitated by an organizational culture of Outcome Orientation and Attention to Detail. The extent of use of Employee Empowerment is similar across the two sectors, and is facilitated when public sector organizations exhibit higher Respect for People and Innovation.