Adoption and Implementation of Activity-Based Innovations: with Emphasis on Initiation, Adoption and Extent of Use

Activity-based innovations can be defined as ‘any management accounting practice that uses the concept of ‘activities’ as its hard core’. This study specifies the concept of activity-based innovations and identifies the factors influencing ABI initiation, adoption and extent of use. The statistical population of this study is Kerman manufacturing companies. Required data was collected through self-made questionnaire. The research period has been the summer of 2017. Binary logistic regression model and Pearson correlation coefficient were used to test the research hypotheses. According to the research findings, there is no a meaningful relationship between innovation attributes and initiation of "activity-based innovations." Among the attributes of innovation, only the relative advantage has a positive and significant relationship with the adoption of innovation. Among the organizational factors, only two factors “top management support” and the “levels of overhead” have a positive and significant relationship with initiation of innovation as well as only two factors “top management support” and “champion support” have a positive and significant relationship with the adoption of innovation. Environmental uncertainty factors have a positive and meaningful relationship with the extent of use of "activity-based innovation".