Abstract
Nowadays the costs of doing business have been increased and become more competitive than before. Hence, many organizations have been thinking to outsource activities which are not the core competence of the organization such as finance and accounting, information technology, human resources, and any other back-office activities. This research provides an understanding of the factors influencing of the organization intends to outsource the finance and accounting activities decision for the Small and Medium Enterprises (SMEs) in Malaysia. The research uses a qualitative exploratory and explanatory method. The qualitative data collected via individual interviews with Malaysia Small and Medium Enterprises’ decision makers and a higher level of management group which comprises of individual or organizations. The results suggest that Malaysian SMEs would shorten their decision-making process to make a business process outsource if they can see the success story of other organizations.
Highlights
Finance and accounting outsourcing means passing some of the finance and accounting duties to third-party providers for the benefits of scare skills, cutting the costs of doing business or gaining more competitiveness (Financial Services Authority, 2005).The prior research on the perceived benefits of business process outsourcing (Heiko Gewald, 2010; Brown, & Ozar 2018) shows that perceived benefits, cost advantages, core competencies, specialized resources, and quality improvement, have a positive relationship towards the intention to increase the level of business process outsourcing.Recently the finance and accounting outsourcing is growing rapidly and Asia becomes a populating destination for the business processes relocation
Malaysian Small and Medium Enterprises (SMEs) agreed that Financial Accounting Outsourcing practices are generally acceptable and adoptable internally and externally with business operations and practices
Based on Malaysian SMEs who have frequent trading with foreign and overseas entities, the organization management hinted for the local Malaysian Financial Accounting Outsourcing providers to revise, upgrade and adjust their conventional accounting method to match and cope with the overseas trading business model
Summary
Gholamreza Zandi1, Thee Kok Chuan2 & Shaheen Mansori3 1 Universiti Kuala Lumpur Business School, Malaysia 2 Graduate School of Business, SEGi University, Malaysia 3 Malaysian University of Science and Technology (MUST), Malaysia Correspondence: Gholamreza Zandi, Universiti Kuala Lumpur Business School, Malaysia.
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