Activity based costing in China
This project investigated the implementation of activity-based costing (ABC) at Xu Ji Electric manufacturing company, a large Chinese state owned enterprise (SOE) turned PLC. The key issues are whether an ABC technique can be successfully implemented in a Chinese organisational setting and how ABC information can be used effectively to support Chinese management decision making.
The company piloted ABC implementation in one of its main production divisions in December 2001, when ABC concepts were at a theoretical level in China (Liu and Pan, 2007). Two more attempts to extend the use of ABC in one of its subsidiaries and sales functions took place in 2005 and 2008.
These events provided a unique opportunity to unveil factors pertinent to organisational decisions towards information system implementation, to extract ‘real-life’ interactions between personnel at various organisational hierarchies; and to evaluate complex relationships between changes, organisational and individual learning.
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