Molela, GodfreyKasoga, PendoIsmail, Ismail2024-08-202024-08-202023Molela, G., Kasoga, P., & Ismail, I. J. (2023). Institutional Isomorphism and Adoption of Activity-Based Costing in Tanzanian Manufacturing Sector. Southern African Business Review, 27, 1-12.DOI: http://dx.doi.org/10.25159/1998-8125/14132https://repository.udom.ac.tz/handle/20.500.12661/4910Full-text article is also available at http://dx.doi.org/10.25159/1998-8125/14132This study aimed to ascertain the correlation between the three forces of institutional isomorphism and the adoption of different levels of activity-based costing (ABC) by manufacturing companies in Tanzania. A cross-sectional survey design was executed to collect the primary data from the three research areas: Dar es Salaam, Arusha, and Dodoma regions. The study employed the multinomial logistic regression model (MLRM) to analyse the quantitative data from a sample of 188 manufacturing companies. The analytical results show that only normative pressures positively correlated with level 2 of ABC adoption, while mimetic and coercive pressures positively correlated with level 3. Level 4 of ABC adoption positively correlated with mimetic pressures, while level 5 was found to correlate with coercive pressures only positively.enInstitutional IsomorphismInnovation AdoptionActivity-based Costing (ABC)Implementation LevelsManufacturing SectorArticle10.25159/1998-8125/14132