Barriers to Implementing Activity-Based Costing (ABC) in Technical and Vocational Education and Training (TVET) Colleges: Insights from senior finance staff in South African Higher Education Institutions

Abstract

This research explores the barriers to activity-based costing (ABC) adoption and implementation in South African technical and vocation education and training (TVET) colleges and proposes a multi-dimensional conceptual framework to address these barriers. The objective is to investigate behavioural, organisational and technical factors hindering the ABC adoption and implementation, with a focus on senior finance personnel experiences in technical and vocational education and training (TVET) colleges in KwaZulu-Natal. A qualitative method was employed, involving semi-structured interviews with finance staff from five TVET colleges. The results indicate that resistance to change and technical issues are critical barriers to ABC adoption and implementation, while senior management support, resource availability and specialised training are essential enablers. Furthermore, the research reveals that product diversity, cost structure and institutional size are insufficient for successful ABC adoption and implementation without effective leadership, technical readiness and resource alignment. The findings underscore the need for institutions to prioritise leadership-driven change management, targeted training, and effective resource allocation to improve costing systems and contribute to sustainable development goal 4 (SDG 4) of inclusive and equitable quality education. The implication of this research suggests that addressing ABC barriers can significantly improve financial decision-making in HEIs, ultimately advancing educational inclusivity and quality.