Effective Change Management and Its Role in Facilitating Time-Driven Activity-Based Costing Adoption in Malaysian Private Universities

Abstract

This study investigates the role of Effective Change Management (ECM) in facilitating the adoption of Time-Driven Activity-Based Costing (TDABC) in Malaysian private universities. Grounded in Organizational Change Theory and innovation adoption literature, the study conceptualizes ECM as a multidimensional construct comprising leadership support, communication effectiveness, training adequacy, and organizational readiness. Using survey data from 316 decision-makers and finance personnel across private higher education institutions, the study applies Partial Least Squares Structural Equation Modelling (PLS-SEM) to test both direct and mediating relationships. The findings reveal that ECM has a significant positive effect on TDABC adoption and partially mediates the relationship between perceived innovation characteristics and adoption. The results demonstrate that favourable perceptions of TDABC alone are insufficient for implementation unless supported by structured change mechanisms. This study contributes to management accounting and organizational change literature by empirically validating ECM as a strategic enabler of accounting innovation adoption in higher education.