Implementing an activity-based cost management system : a cross-cultural field study

This research is a cross-cultural field study of the implementation of Harris Semiconductor's (HS) Activity-Based Cost Management System (ABCMS). HS has implemented an ABCMS in plants located in Malaysia, Singapore, and the United States. Geert Hofstede's taxonomy of work-related cultural values is used as the framework for examining if ABCMS resistance levels differ among HS employees located in these three diverse cultural settings. Two culturally-related personality variables (external locus of control due to more powerful others, and concern for saving face) are incorporated into the study to help identify potential root causes of resistance to ABCMS implementations. The three primary contributions of the study are as follows. First, this research provides evidence that ABCMS resistance levels may differ across cultures. More specifically, ABCMS resistance levels were higher in HS's U.S. plants relative their plants located in Singapore and Malaysia. Second, the study provides evidence that across cultures higher levels of concern for saving face may be associated with lower ABCMS resistance levels. Third, the study provides evidence that external locus of control due to more powerful others and concern for saving face can be reliably measured across cultures. Given the field-based nature of this study, future research is needed to determine the generalizability of these findings.