Activity-Based Costing: A Hybrid Systematic Literature Review and Bibliometric Analysis of Global Research Trends, Implementation Barriers, and Future Directions

Abstract

Activity-Based Costing (ABC) represents a critical management accounting innovation for enhancing cost allocation accuracy and supporting organizational strategic decision-making. Despite substantial theoretical advantages and documented practical benefits, significant implementation-effectiveness gaps persist, with 40-60% of ABC implementations failing to achieve intended outcomes or being abandoned within three years.
Objectives and Methods: This hybrid systematic literature review and bibliometric analysis employed PRISMA-guided procedures to comprehensively synthesize global ABC research (1973-2024). From an initial pool of 3,904 Scopus publications, 49 high-quality open-access journal articles met rigorous inclusion criteria. Qualitative synthesis and quantitative bibliometric analysis using VOSviewer and Bibliometrix provided complementary analytical perspectives. The review explicitly acknowledges that reliance on open-access articles may exclude high-impact research from subscription-based premium journals and multinational corporations, potentially underrepresenting Western-centric scholarship.
Results: ABC continues as a dynamic research domain with sustained upward publication trajectory, particularly since 2010, demonstrating robust academic interest and future relevance. Analysis identifies five distinct research clusters: traditional ABC applications (36.7%), implementation barriers (30.6%), technology integration (24.5%), sector-specific applications (28.6%), and sustainability integration (12.2%). Implementation outcomes prove heterogeneous: 53% report substantial benefits, 37% mixed outcomes, and 16% document failures, confirming ABC effectiveness is context-dependent. Geographic analysis reveals pronounced Western concentration (81.6%), while emerging markets remain substantially underrepresented. Methodological analysis reveals case study dominance (71.4%) with significant longitudinal investigation gaps (4.1%). Critical research gaps emerge in technology integration: minimal representation of artificial intelligence (1 occurrence), Internet of Things (2 occurrences), and Industry 4.0 keywords despite their strategic organizational significance.
Conclusions: ABC stands as a dynamic, evolving domain with demonstrated theoretical validity and practical utility. Priority future research includes longitudinal studies, comparative international research addressing geographic gaps, systematic investigation of technology integration pathways particularly in Industry 4.0 environments, and sectoral expansion toward emerging digital business models. Organizations should implement contingency-based frameworks acknowledging context-dependency of ABC effectiveness.