The Possibility and Requirements to Move from Traditional Costing System (TCS) to Activity-Based Costing System (ABC) in Palestinian Private Hospitals رسالة ماجستير

Abstract

This study aims to investigate the possibility and requirements to move from traditional costing system (TCS) to an activity-based costing system (ABC) in Palestinian private hospitals (PPHs), by studying the differences between the TCS system and the ABC system, and the basic factors for ABC system adoption in PPHs. this study also examines the importance of the ABC system, which provides the most accurate cost information for the calculation of the cost of health care services in the PPHs. The contingency theory is a relatively significant advancement in ABC system research. This study aims to provide an in-depth insight of ABC system adoption success through contingency factors. The study utilizes the mediating variable (information technology readiness) as information technology affects the relationship between contingency factors and the adoption of the ABC system. The quantitative approach was used in this study. Primary data were collected from six PPHs using an electronically distributed questionnaire. The analysis of the data is based on 105 respondents. Furthermore, primary data for the first half of 2022 were collected from the Istishari Arab Hospital (IAH). The results of the study show the ability of the ABC system to provide more accurate information about the costs of health services. Moreover, the study revealed that information technology readiness mediates a positive relationship between contingency factors and the adoption of the ABC system among PPHs. So, this study sheds light on the behavioral and organizational aspects of contingency theory that are important for PPHs to adopt the ABC system.