This 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...

Purpose: Firstly, this paper investigates the sourcing strategy of small and medium sized companies (SMEs) in terms of accounting tasks. Secondly, this paper also attempts to find motivations for the sourcing strategy of accounting. Thirdly, this paper investigates whether the sourcing strategy...