Effects of production complexity and competition levels on the implementation of activity based costing in pharmaceutical companies

Despite its advantages over traditional pricing systems, the ABC system is still not extensively adopted, and it has thus been a focus of discussion for scholars for examination and, eventually, acceptance. Because of the reduced level of ABC adoption, various scholars have conducted empirical studies on it to explore the impact of the firm's characteristics and surroundings on its dissemination and the elements that determine its success. Much empirical research has been conducted in Western or Industrialized countries, with relatively little research conducted in emerging countries, particularly in Asian contexts. Few studies have been conducted in India, as in other Asian nations, to explore the prevalence and the use of ABC systems. The study's main goals are to analyze the company's features and environment elements that affect the adoption of the ABC system, as well as to analyse the influence of behavioural and institutional contexts on ABC success in pharmaceutical enterprises in Odisha. The factor analysis revealed that the most important reason that has discouraged pharmaceutical enterprises in Odisha from embracing ABC was that they confront certain innate problems in the process of the ABC system, such as the difficulty of the ABC system is the lack and high cost of advisors, followed by trust in the currently used cost systems.