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

Serge Valant Gandja () and Christophe Estay ()
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Serge Valant Gandja: BEM-Bordeaux Management School
Christophe Estay: Bordeaux Management School

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2012, vol. 2, issue 4, 259-271

Abstract: 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.

Keywords: Transactional costs theory; Resource-based theory; contingency theory; externalisation; accounting (search for similar items in EconPapers)
JEL-codes: M40 M41 M49 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:2:y:2012:i:4:p:259-271

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