ABC is a major innovation in management accounting, essential to keep pace with the manufacturing and new business environment. In Jordan, research in management accounting such as ABC is important to emphasize the role of management accounting among Jordanian companies in providing the management with appropriate information for decision-making, controlling the cost system and enhancing the organizational performance. This research investigates to enhance the ABC adoption roles among manufacturing and service organizations by achieving the following objectives: (a) to investigate the effect of organizational antecedents, namely; top management support, training, organizational culture, information technology, and non-accounting ownership on ABC adoption, (b) to examine the relationship between ABC adoption and organizational performance, (c) to investigate the effect of organizational antecedents on organizational performance, and (d) to test the mediating effect of ABC adoption on the relationship between organizational antecedents and organizational performance. A survey research methodology was used and 250 questionnaires were distributed among companies involved in manufacturing and services sectors. The Structural Equation Modeling (SEM) method was employed in data analysis which assesses the relationship between all constructs of the study. The results showed direct significant in ABC adoption among manufacturing and service companies by organizational antecedents. The findings also showed a positive effect between ABC adoption and organizational performance. Meanwhile, the relationship between organizational antecedents and organizational performance was found as not significant. Furthermore, the analysis has presented the significant influence of ABC adoption as a mediator variable between organizational antecedents and organizational performance within the Jordanian manufacturing and services companies. Overall, the findings in this study have generated implications for theorists and practitioners alike by producing empirical evidence on the impact of organizational antecedents on ABC adoption. This has allowed for the development of research models which illustrate the mediating role of ABC adoption, explaining the relationship between organizational antecedents and organizational performance, and elucidate the affective factor of ABC adoption on organizational performance. A practical contribution via new framework of ABC adoption to create a platform for a better understanding with regards to the enhancement of the organizational performance among manufacturing and service companies in Jordan.

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