Lagging Effects of the Use of Activity‐Based Costing on the Financial Performance of Small Firms

Sinikka Jänkälä, Hanna Silvola

Research output: Contribution to journalArticleScientificpeer-review

21 Citations (Scopus)

Abstract

This paper contributes to the earlier small business literature by investigating the lagging effects of the use of activity‐based costing (ABC) on small firms' performance. Moreover, we examine if the small firms' past financial performance drives the adoption of ABC and explore whether the extent of ABC use leads, in turn, to improvements in firms' financial performance in the immediate future. In sum, the survey results indicate that small firms with adequate financial resources as well as firms experiencing declining growth tend to use ABC and such use facilitates their subsequent growth and profitability. Small firms seem to benefit from using ABC.
Original languageEnglish
Article number50
Peer-reviewed scientific journalJournal of Small Business Management
Volume50
Issue number3
Pages (from-to)498-523
Number of pages26
ISSN0047-2778
DOIs
Publication statusPublished - 2012
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management

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