Abstract

The aim of this study is to examine the factors that influence on outsourcing of accounting functions and the effect of outsourcing on firm performance in Iranian manufacturing small and medium enterprises (SMEs). Results from a survey of 658 SMEs show that outsourcing is positively associated with owner/manager knowledge and the technical competence, but was not found a positive relationship between outsourcing and the size of the firm. It was found that outsourcing has a positive impact on SME performance. In addition, our analysis suggested that outsourcing did not mediate the influence of firm size on SME performance but partially mediated the impact of owner/manager knowledge on firm performance and also technical competence of an accountant on SME performance.

This work is licensed under a Creative Commons Attribution 4.0 License.