National culture and activity-based costing systems: a note

This research uses Geert Hofstede's taxonomy of work-related cultural values to examine the relationship between national culture and Activity-Based Costing (ABC) systems. Hofstede's work is used to formulate six predictions about how international cultural diversity could affect an ABC implementation. Two of these six predictions are then applied to the case of Harris Semiconductor (HS), which has implemented an ABC system at plants located in Malaysia and the United States. The findings indicate that HS's "top-down" implementation approach coupled with ABC's inherent emphasis on cross-functional team-based work arrangements may have contributed to a higher level of ABC success at HS's plant in Malaysia relative to its U.S. plants.