Outsourcing Accounting Services and Firm performance in Small and Medium Sized Enterprises (SME’s): A Pilot Study of Nigerian Food, Beverages and Tobacco Industries.

Abstract

this study analyses the reasons Small and medium sized enterprises ( SME’s) engages in outsourcing accounting services and the corollary of outsourcing on performance in terms of Transaction Cost Economics (TCE) theory in the context of Food, Beverages and Tobacco SME’s in Nigeria. The use of questionnaires to collect data was employed. Twenty (20) SME’s was pilot tested and regression analysis was used to determine key drivers of outsourcing in SME’s. The study reveals that the predictor variable outsourcing has a significant impact on performance (Coefficient=0.6738, p<0.001) and Asset Specificity Trust in Accountant and Behavioral Uncertainty is significantly related to SME’s performance (Coefficient= 0.5223, 0.7112 and 0.6957 respectively).