Make-or-Buy Decisions: What Choice for an Accounting Services in a Developing Country?

This article puts forward an explanatory model for the probability of a business having internal or external accounting at a specific moment. It is supported by three approaches: resource- based theory, contingency theory and transaction cost theory. A questionnaire was submitted to 79 business heads in Cameroon. The data gathered were subject to Pearson correlation tests, principal component analysis, logistic regression and Spearman rank tests. The study’s results emphasise the influence of differentials in skills and costs on the probability of accounting being external or internal. It shows that a greater uncertainty in the external environment leads to outsourcing as it offers enterprises greater flexibility. The make-or-buy decision depends on contextual factors such as the size of the business, training systems and accounting referential.