Search This Blog

Thursday 12 January 2012

Outsourcing of accounting functions in the context of SMEs in emerging economies: Transaction cost economics perspective

Australian Journal of Basic and Applied Sciences
Volume 5, Issue 11, November 2011, Pages 1696-1703
ISSN: 19918178
Document Type: Article
Source Type: Journal


Outsourcing of accounting functions in the context of SMEs in emerging economies: Transaction cost economics perspective



a Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran
b Faculty of Business and Accountancy, University of Malaya, Malaysia


Abstract

This study aims to identify the factors that affect Iranian manufacturing SMEs' decision to outsource accounting functions (activities) using a transaction cost economics (TCE) perspective. Based on a questionnaire survey data of 658 Iranian manufacturing SMEs, this study found support for three TCE predictions, that is, asset specificity, frequency and trust in accountant, which are significantly associated with the accounting function outsourcing intensity. The other two predictors that were examined, that is, behavioral uncertainty and environmental uncertainty, were not significantly associated with accounting function outsourcing intensity. Therefore, we provide a specific, theoretically and empirically grounded prediction of how TCE attributes influences outsourcing of accounting functions with implications for theory and practice.

Language of original document

English

Author keywords

Accounting functions; Outsourcing; SMEs and Iran; Transaction cost economics theory (TCE)

References (28) View in table layout


Ebrahim, N.A., Ahmed, S., Taha, Z.

Critical factors for new product developments in SMEs virtual team
(2010) African Journal of Business Management, 4 (11), pp. 2247-2257. Cited 5 times.
http://www.academicjournals.org/ajbm/PDF/pdf2010/4Sept/Ale%20Ebrahim%20et%20al.pdf



Alvarez-Suescun, E.

Combining transaction cost and resource-based insights to explain IT implementation outsourcing
(2010) Information Systems Frontiers, 12 (5), pp. 631-645. Cited 3 times.
doi: 10.1007/s10796-010-9237-1

Coase, R.H.

The nature of the firm
(1937) Economica., 4 (16), pp. 386-405. Cited 3399 times.


Delmotte, J., Sels, L.

HR outsourcing: Threat or opportunity?
(2008) Personnel Review, 37 (5), pp. 543-563. Cited 10 times.
doi: 10.1108/00483480810891673

Dibbern, J., Heinzl, A.


(2009) Business and Information Systems Engineering, 1, pp. 101-110. Cited 3 times.

Ellram, L.M., Tate, W.L., Billington, C.

Offshore outsourcing of professional services: A transaction cost economics perspective
(2008) Journal of Operations Management, 26 (2), pp. 148-163. Cited 47 times.
doi: 10.1016/j.jom.2007.02.008

Espino-Rodŕguez, T.F., Padrón-Robaina, V.

Outsourcing and its impact on operational objectives and performance: A study of hotels in the Canary Islands
(2004) International Journal of Hospitality Management, 23 (3), pp. 287-306. Cited 26 times.
doi: 10.1016/j.ijhm.2003.11.004

Espino-Rodríguez, T.F., Lai, P.-C., Baum, T.

Asset specificity in make or buy decisions for service operations: An empirical application in the Scottish hotel sector
(2008) International Journal of Service Industry Management, 19 (1), pp. 111-133. Cited 7 times.
doi: 10.1108/09564230810855734

Everaert, P., Sarens, G., Rommel, J.

Using Transaction Cost Economics to explain outsourcing of accounting
(2010) Small Business Economics, 35 (1), pp. 93-112. Cited 3 times.
doi: 10.1007/s11187-008-9149-3

Gooderham, P.N., Tobiassen, A., Døving, E., Nordhaug, O.

Accountants as sources of business advice for small firms
(2004) International Small Business Journal, 22 (1), pp. 5-22. Cited 16 times.
doi: 10.1177/0266242604039478

Greenberg, P.S., Greenberg, R.H., Antonucci, Y.L.

The role of trust in the governance of business process outsourcing relationships: A transaction cost economics approach
(2008) Business Process Management Journal, 14 (5), pp. 593-608. Cited 3 times.
doi: 10.1108/14637150810903011

Hansen, M.H., Morrow Jr., J.L.

Trust and the decision to outsource: Affective responses and cognitive processes
(2003) International Food and Agribusiness Management Review, 6 (3), pp. 40-61. Cited 4 times.
http://www.ifama.org/members/articles/v6i3/Hansen.pdf



Hasle, P., Bager, B., Granerud, L.

Small enterprises - Accountants as occupational health and safety intermediaries
(2010) Safety Science, 48 (3), pp. 404-409. Cited 2 times.
doi: 10.1016/j.ssci.2009.09.008

Jiang, B., Belohlav, J.A., Young, S.T.

Outsourcing impact on manufacturing firms' value: Evidence from Japan
(2007) Journal of Operations Management, 25 (4), pp. 885-900. Cited 17 times.
doi: 10.1016/j.jom.2006.12.002

Kamyabi, Y., Devi, S.

An empirical investigation of accounting outsourcing in Iranian SMEs: Transaction cost economics and resource-based views
(2011) International Journal of Business and Management, 6 (3), pp. 81-94. Cited 3 times.


Lamminmaki, D.


(2007) Journal of Hospitality and Tourism Research, 31, pp. 73-110. Cited 6 times.

Lamminmaki, D.

An investigation of the role played by frequency and uncertainty in hotel outsourcing decisions
(2009) International Journal of Services, Technology and Management, 11 (2), pp. 182-201. Cited 3 times.
doi: 10.1504/IJSTM.2009.022524

Maelah, R., Aman, A., Hamzah, N., Amiruddin, R., Auzair, S.M.


(2010) Strategic Outsourcing: An International Journal, 3 (3), pp. 226-245. Cited 2 times.

Marriott, N., Marriott, P.

Professional accountants and the development of a management accounting service for the small firm: Barriers and possibilities
(2000) Management Accounting Research, 11 (4), pp. 475-492. Cited 11 times.
doi: 10.1006/mare.2000.0142

Marshall, D., McIvor, R., Lamming, R.

Influences and outcomes of outsourcing: Insights from the telecommunications industry
(2007) Journal of Purchasing and Supply Management, 13 (4), pp. 245-260. Cited 12 times.
doi: 10.1016/j.pursup.2007.07.001

McIvor, R.

How the transaction cost and resource-based theories of the firm inform outsourcing evaluation
(2009) Journal of Operations Management, 27 (1), pp. 45-63. Cited 29 times.
doi: 10.1016/j.jom.2008.03.004

Nandan, R.

Management accounting needs of SMEs and the role of professional accountants: A renewed research agenda
(2010) Journal of Applied Management Accounting Research (JAMAR), 8 (1), pp. 65-78.


Nicholson, B., Jones, J., Espenlaub, S.

Transaction costs and control of outsourced accounting: Case evidence from India
(2006) Management Accounting Research, 17 (3), pp. 238-258. Cited 18 times.
doi: 10.1016/j.mar.2006.05.002

Speklé, R.F., van Elten, H.J., Kruis, A.-M.

Sourcing of internal auditing: An empirical study
(2007) Management Accounting Research, 18 (1), pp. 102-124. Cited 6 times.
doi: 10.1016/j.mar.2006.10.001

Thouin, M.F., Hoffman, J.J., Ford, E.W.

IT outsourcing and firm-level performance: A transaction cost perspective
(2009) Information and Management, 46 (8), pp. 463-469. Cited 8 times.
doi: 10.1016/j.im.2009.08.006

Tian, Y., Lai, F., Daniel, F.

An examination of the nature of trust in logistics outsourcing relationship: Empirical evidence from China
(2008) Industrial Management and Data Systems, 108 (3), pp. 346-367. Cited 17 times.
doi: 10.1108/02635570810858769

Verwaal, E., Verdú, A.J., Recter, A.

Transaction costs and organisational learning in strategic outsourcing relationships
(2008) International Journal of Technology Management, 41 (1-2), pp. 38-54. Cited 7 times.
doi: 10.1504/IJTM.2008.015983

Widener, S.K., Selto, F.H.

Management control systems and boundaries of the firm: Why do firms outsource internal auditing activities?
(1999) Journal of Management, Accounting Research, 11, pp. 45-73. Cited 31 times.

Scopus - Document details

No comments:

Post a Comment