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English Title

FACTORS INFLUENCING OUTSOURCING OF ACCOUNTING FUNCTIONS IN LEBANESE SMALL MEDIUM-SIZED ENTERPRISES

Keywords

Outsourcing; Accounting Functions; SMEs; Industrial Sector; Lebanon.

Disciplines

Accounting | Business

Abstract

Accounting functions (AF) play a significant role in aiding firms to sustain competitive advantage (CA). However, small and medium-sized enterprises (SMEs) face troubles handling basic AF. This is primarily due to their dearth of proficiency and infrastructure. Consequently, outsourcing has come to be a substantial aspect of the thorough strategy of any SME to leverage its CA. In spite of the fact that outsourcing became very popular topic, this area has not been studied fully in emerging countries like Lebanon specifically in the industrial sector. Thus, this research aimed at examining the main factors affecting AF outsourcing in the Lebanese context. A survey of 280 owners of industrial SMEs within Beirut city was carried out. The empirical analysis revealed that asset specificity (AS) and behavioral uncertainty (BU) have a significant negative impact on outsourcing of AF. Whereas, degree of competition (DOC) and accounting competence have a significant positive impact on outsourcing of AF.

ISSN

2789-8334

Included in

Accounting Commons

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