Effect of Top Management Support on the Adoption of Activity-Based Costing in Malaysia Public University: Moderating Role of Technology

Abstract

This study examines the relationship between top management support, the adoption of activity-based costing (ABC), and the performance of public universities in Malaysia. The study collected data from senior financial officers of 20 public universities in Malaysia using survey questionnaires and analysed 83 usable responses using partial least square structural equation modelling (PLS-SEM). The results of the study suggest that top management support has a significant positive effect on ABC adoption in public universities in Malaysia. Furthermore, the study found a positive relationship between ABC adoption and the effectiveness and efficiency of public universities, suggesting that ABC adoption can lead to improvements in the performance of public universities in Malaysia. However, the study did not support the moderating effect of technological advancement in strengthening the relationship between ABC adoption and effectiveness and efficiency. Hence, while technology may play a role in ABC adoption and the performance of public universities, it may not necessarily strengthen the relationship between the two. Overall, the findings suggest that ABC adoption can improve public universities' effectiveness and efficiency as part of good governance in managing the education sector.

Keywords: Top management support; ABC adoption; effectiveness and efficiency; technology