Management Accounting Change: Perceived Characteristics of Innovation on the Adoption of Activity-Based Costing for Private University in Malaysia by Using the Roger Theory

The research aims to explore the factors influencing the adoption of Activity-Based Costing ABC in higher education institutions, specifically in private universities in Malaysia. It also aims to fill the research gap in adopting ABC in the higher education sector. The study will investigate the perceived characteristics of innovation, such as relative advantage, compatibility, complexity, trialability, and observability, and their relationship to the adoption of ABC. This article focuses on the adoption of activity-based costing (ABC) in private universities in Malaysia. ABC is a management accounting process that assigns resource costs to products based on activity. This research will also examine the moderating effect of the stakeholders on the relationship between these perceived characteristics and the adoption of ABC. The study will use quantitative research methods, including surveys and statistical analysis, to collect and analyze data. The findings of this research will contribute to the understanding of the adoption of ABC in the higher education sector and provide insights for decision-makers in implementing ABC in universities. The results suggest that Rogers' theory has some probative value because, according to existing research, relative advantages and trialability are important factors in the adoption of ABC. We will describe the finding of positive but non-significant effects on complexity, compatibility, and observability to the nature of ABC as an administrative innovation disseminated among organizations, as opposed to the origin of the theoretical framework as applied to technical innovations disseminated among individuals.