Institutional Isomorphism and Adoption of Activity-Based Costing in Tanzanian Manufacturing Sector

Godfrey Molela; Pendo Kasoga; Ismail Ismail

doi:10.25159/1998-8125/14132

Authors

Godfrey Molela The University of Dodoma https://orcid.org/0000-0002-4933-1527
Pendo Kasoga The University of Dodoma
Ismail Ismail The University of Dodoma

DOI:

https://doi.org/10.25159/1998-8125/14132

Keywords:

Institutional Isomorphism, Innovation Adoption, Activity-based Costing (ABC), Implementation Levels, Manufacturing Sector

Abstract

This study aimed to ascertain the correlation between the three forces of institutional isomorphism and the adoption of different levels of activity-based costing (ABC) by manufacturing companies in Tanzania. A cross-sectional survey design was executed to collect the primary data from the three research areas: Dar es Salaam, Arusha, and Dodoma regions. The study employed the multinomial logistic regression model (MLRM) to analyse the quantitative data from a sample of 188 manufacturing companies. The analytical results show that only normative pressures positively correlated with level 2 of ABC adoption, while mimetic and coercive pressures positively correlated with level 3. Level 4 of ABC adoption positively correlated with mimetic pressures, while level 5 was found to correlate with coercive pressures only positively.

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