Outsourcing of Accounting Tasks in SMEs: An extended TCE Model
AbstractThis study explores why small and medium-sized companies (SMEs) engage in outsourcing of accounting services. We expand the transaction cost economics model by adding the variable resource deficit from resource-based theory, while controlling for personal characteristics of the SME executive (age, education), organizational structure, firm maturity and ownership structure. We find that resource deficit, asset specificity and frequency are the most significant drivers of outsourcing intensity with respect to accounting. Furthermore, the educational background of the CEO seems to play an important role, as well as the presence of a separate CFO function within the firm.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 06/409.
Length: 11 pages
Date of creation: Sep 2006
Date of revision:
outsourcing; accounting; SME; transaction-cost theory; resource-based theory;
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