F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

The Use of Outsourced Accounting Service and Its Impact on SMEs

Performance

Fadilla Cahyaningtyas
1

Mega Noerman Ningtyas
2

1,2
Accounting Department, Sekolah Tinggi Ilmu Ekonomi Asia Malang, Indonesia

e-mail: fadilla_cahyaningtyas@yahoo.co.id

DOI: http://dx.doi.org/10.26675/jabe.v4i2.8641

Abstract: This research was about the important contribution of SMEs to Indonesian economy in reality and their

weak management accounting functions. This research aimed to find out the factors influencing SMEs’ decision to

use outsourced accounting advisory services and the effect of such use towards SMEs’ performance as from

Transaction Cost Economics (TCE) and Resource Based View (RBV) perspectives. In this research, the population

was comprised of manufacturing SMEs ini Malang. The researchers then took the sample using purposive sampling

method. Meanwhile, the criteria to determine the sample were based on the definition of SME in Indonesia.

Furthermore, the researchers conducted survey by distributing 270 questionnaires to collect the data. Using SEM

(AMOS) analysis, the researchers successfully figured out that asset specification, environment uncertainty, technical

competence, and competition level acted as major factors that affected SMEs’ decision to use outsourced accounting

services. Meanwhile, the researchers found that behavior uncertainty and trust in accountants did not have significant

impact on such SMEs’ decision. The result of SEM analysis showed that outsourced accounting advisory services

significantly provided positive effect on SMEs’ performance.

Keywords: SMEs, Outsourced Accounting, Transaction Cost Economics (TCE), Resource Based View (RBV),

Performance

INTRODUCTION

Company performance has been one of the most-studied topics, be it private or state-owned

enterprises, in which it consists of two components, namely financial and non-financial performances

(Tazilah, Majid, & Suffari, 2019). Even in Indonesia studies on a company’s performance analysis have

been massively done in accounting field. However, most of these studies on performance analysis focus on

major companies when in reality, looking at it a little bit closer, the existence of and roles played by Small

and Medium Enterprises (SMEs) are dominant in the economy than major companies. For five years in a

row (2013 - 2017), the domination of SMEs are shown by the percentage of SME existence which reaches

99.99 % each year, and major businesses (UB) only 0.01% (Kemenkop, 2017). The SMEs’ contribution to

the absorption of manpower is also far greater than major businesses, i.e. at 97% of the total manpower.

Likewise, SMEs could significantly contribute to Gross Domestic Product (PDB) over 55% each year

(Kemenkop, 2017).

This SMEs’ contribution helps increase the country’s economic development and growth

significantly (Mwangi, Mutiso, & Mungai, 2018). As the importance of SMEs’ role grows in the economic

growth and development, many challenges should be dealt with by SMEs. One of them is the unstable and

JOURNAL OF ACCOUNTING AND BUSINESS EDUCATION
P-ISSN 2528-7281 E-ISSN 2528-729X

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http://dx.doi.org/10.26675/jabe.v4i2.8641

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

unpredictable business environment as a result of technology changes, increased customer’s demand, and

tight competition (Kamyabi & Devi, 2011b). Furthermore, in such a business environment, SMEs’

continuance is under a threat and SMEs have been continuously forced to face these significant challenges

(Ganesan, Haron, Amran, & Pitchay, 2018; Kamyabi & Devi, 2011a).

Even in Indonesia, SMEs still find it difficult to deal with this business environment challenge. One

of the difficultires is the involvement in performing an accounting cycle, ranging from recording to

measuring or assessing the activities taking place in their businesses, to preparing financial statements. This

is consistent with the result of a previous study which finds that SMEs are likely to find it difficult to

manage and control their internal system well in order to prepare sound financial statements (Tazilah et al.,

2019). Many factors contribute to this SMEs’ difficulty in preparing financial statements, including their

lack of adequate resources, both financial and non-financial ones (Hidayati, 2013). If this continues, it is

not impossible that SMEs might fail to keep their businesses going in this increasingly more competitive

business environment.

To overcome this issue, some studies suggest that SME needs to use outsourced accounting service

to perform its accounting function (Carey, 2015; Ganesan et al., 2018; Husin & Ibrahim, 2014; Jayabalan,

Dorasamy, Ramlan, & Ching, 2009; Kamyabi & Devi, 2011d; Kotabe & Mol, 2009). Previous studies

recommend SME to use outsourcing services to change its traditional activities, particularly in its

accounting function (Cullinan & Zheng, 2017; Kotabe & Mol, 2009). Outsourced accounting service is an

option for SMEs to maintain its competitive advantage and in a competitive environment (Jayabalan et al.,

2009; Kipsang & Mwangi, 2017). SMEs need the consultation and expertise related to accounting practice

to improve its performance (Husin & Ibrahim, 2014). Outsourced service can benefit SMEs’ competence,

enabling them to save their costs more effectively and efficiently (Agburu, Anza, & Iyortsuun, 2017;

Rodriguez & Fierro, 2016), improve their responsiveness to business environment changes, and lower the

risks posed by technology change (Agburu et al., 2017). For these reasons, outsourced accounting service is

used extensively and it is believed these outsourced accountants can be professional advisors among SMEs

(Blackburn, Carey, & Tanewski, 2018).

However, the awareness of using external accounting services to deal with their accounting system

implementation issues still low. This is disclosed by a previous study which finds that the bookkeeping in

Kenyan SMEs is inadequate and these SMEs rarely use high-quality outsourced accounting services

(Kipsang & Mwangi, 2017). The same phenomenon is also found in Indonesia. A previous study finds that

out of 70 SMEs which are taken as respondents, 50 want to have bookkeeping, yet only 18 respondents

wish to use consultant service for their accounting issues (Hidayati, 2013).

Based on the phenomenon above, the researchers are urged to conduct research on such topic as the

use of outsourced accounting service and its impact on SMEs' performance since not many studies have

been carried on this topic in Indonesia. This research is a replication of a previous study in a different

country (Kamyabi & Devi, 2011d, 2011b), in which the previous uses Transaction Economis Cost (TCE)

and Resource Based View (RBV) theories to test the factors which affect the SMEs’ tendency to use

external accounting service to help their accounting function. This research also tests the influence of asset

specific factors, environment uncertainty, behavior uncertainty, trust in accounting, technical competence,

and competition level on SMEs’ decision to use outsourced accounting service. Furthermore, this research

also serves as a development of the research conducted by Kamyabi & Devi (2011d), i.e. in addition to

testing the influence of those factors above on the use of outsourced accounting service, it also investigates

the impact of this outsourcing service use on SMEs’ performance ((Hafeez, 2013; Kamyabi & Devi,

2011b). Secondly, what makes this research different from the previous one is that it is conducted in a

different place, i.e. Indonesia, and thus it is possible that the criteria of SMEs to be included as its sample

are different since each country has their own varied definitions of SMEs.

This research aims at explaining the factors which affect SMEs’ decision to use outsourced

accounting service and the impact of such use of outsourced accounting service on its performance by

applying a combined TCE and RBV theories. In TCE perspective, it is believed that a company will try to

keep their transaction and production costs in balance through their decisions to use internal or external

resources in performing a function (Kamyabi & Devi, 2011d). Furthermore, RBV theory suggests that

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

when a company has no valuable, unique, inimitable and organized resources and capability, it ought to use

outsourcing to deal with these weaknesses (McIvor, 2009). Moreover, RBV theory shows that it is possible

SMEs to obtain access and availability of both tangible and intangible resources which will have positive

impacts on its performance (Jeronimo, Lopez, & Pinzon, 2019).

Also, it is expected that this research could give practical contributions. Firstly, this research is

expected to give a new insight for SME owners and managers alike into the benefits of using outsourced

accounting services in both performing the accounting function and improving company’s performance.

Secondly, this research result is expected to motivate Kantor Jasa Akuntansi (KJA) or accounting service

office to play its role more actively to help the implementation of accounting function based on SMEs’

needs. Thirdly, this research result is expected to be a reference for the government to make policies aiming

at facilitating the application of accounting function within SMEs. Finally, this research result is expected

to trigger more cooperations between the government and KJA to disseminate and provide accountant

services in SMEs.

LITERATURE REVIEW AND HYPOTHESES

SMEs (Small and Medium Enterprises)

The definition of SMEs is different from one country to another, based on their relevant economic

size, corporate sector structure, and policy framework (Haselip, Desgain, & Mackenzie, 2014). In

Indonesia, there are many definitions of SME, including the one based on the Presidential Decree of

Indonesia No. 99/1998 (Indonesia, 1998), Badan Pusat Statistik (BPS) or Statistics Indonesia, and Law

(2008). Based on the Presidential Decree of Indonesia No. 99/1998 (Indonesia, 1998), small enterprises are

people’s small-scale economic activities with a field/type of business being mostly classified as small

business activities and needing protection to prevent business competition. BPS (Statistics Indonesia)

defines SME based on its number of manpower, in which, according to BPS, small enterprises are business

entities with 5 to 19 workers, and medium enterprises are the ones with 20 to 99 workers (Anggadwita &

Mustafid, 2014).

Under the Law of 2008, SMEs are independently-established productive economic businesses, run

by persons or business entitties, with such criteria as: a) Micro business: net assets range Rp50,000,000.00 -

Rp500,000,000.00 excluding business premises such as land and place of business or a sum of annual sales

at a maximum of Rp300,000,000.00 b) Small business: net assets range Rp50,000,000.00 -

Rp500,000,000.00 excluding business premises such as land and place of business or a sum of annual sales

from Rp300,000,000.00 to Rp2.500.000.000,00; and c) Medium business: net assets over

Rp500,000,000.00 to Rp10,000,000,000.00 excluding business premises such as land and place of business

or a sum of annual sales of more than Rp2,500,000,000.00 to Rp50,000,000,000.00 (Law, 2008).

Accounting Function in SMEs

Accounting is a process of measuring, communicating, and interpreting financial activities

(Jayabalan et al., 2009). In general, accounting can be classified into financial accounting and management

accounting information, where the financial accounting information is intended for external reporting

requirement, and the management accounting is used for the purpose of making internal management

decisions (Kamyabi & Devi, 2011b). The management accounting plays a significant potential role for

SMEs (Nandan, 2010). SMEs need to obtain accurate and reliable management accounting information

from their accountants (Kamyabi & Devi, 2011d). Considerinug the importance of SMEs in every

economy, and given the fact that they represent a reform and major companies can grow, it is assumed that

SMEs needs timely, accurate, reliable, and readily comprehensible management accounting information

(Nandan, 2010).

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

Concept of Outsourcing

The concept of outsourcing was introduced for the first time around 1980s (Hafeez, 2013; Kamyabi

& Devi, 2011b). In this research, outsourcing refers to companies providing external accounting services

(Everaert, Sarens, & Rommel, 2006; Hafeez, 2013; Kamyabi & Devi, 2011b). Furthermore, it can be seen

that in accounting, outsourcing is a process which involve external accountants and pprofessional

accountant firm (Everaert et al., 2006; Hafeez, 2013; Kamyabi & Devi, 2011b).

Some studies draw a conclusion that the use of outsourcing services by SMEs in performing their

accounting function is a good option. Previous research concludes that the function of outsourced

accounting is an option for SMEs to maintain their competitive advantage in their business environment

since outsourcing can lower the burdens borne by SMEs (Jayabalan et al., 2009). Outsourcing offers a

benefit to increase flexibility, thus SMEs are protected from unstable workload (Everaert et al., 2006). A

company's performance could increase directly when it involves external accountants as its advisors

(Kamyabi & Devi, 2011c). A previous study concludes, upon using a survey with 658 questionnaires, that

the function of outsourced accounting in SMEs supports the TCE prediction and RBV consideration, i.e.

for asset specificity, accountant confidence, competition pressure and company’s strategy (Kamyabi &

Devi, 2011a).

TCE (Transaction Cost Economics)

TCE theory was introduced by Coase (Hafeez, 2013; Kamyabi & Devi, 2011d, 2011b) in which he

explains that a company’s costs are used to provide an internal activity known as production costs,

meanwhile the cost to purchase this activity is called transaction cost (Thouin, Hoffman, & Ford, 2009).

TCE is believed effective in increasing the company’s understanding, whether they need to use outsourcing

services or not (Tazilah et al., 2019). Marshall, McIvor and Lamming (2007) suggest that transaction cost

consists of direct and indirect costs from negotiation, monitoring, explicit execution, and implicit contracts

between companies and service providers (Kamyabi & Devi, 2011d).

In TCE perspective, basically a company strives to keep their transaction and production costs in

balance by making decisions on whether or not it should use internal or external resources in performing its

functions (Dibbern & Heinzl, 2009; Kamyabi & Devi, 2011d). The approach identifies the envrionmental

and human factors related to how companies can reduce the costs for their transactions (Agburu et al.,

2017). Meanwhile, the key factors which influence transaction cost of accounting function outsourcing

include asset specification, environment uncertainty, behavior uncertainty (Dibbern & Heinzl, 2009;

Everaert et al., 2006; Hafeez, 2013; Kamyabi & Devi, 2011d), and trust in accountants (Everaert et al.,

2006; Hafeez, 2013; Kamyabi & Devi, 2011d, 2011a, 2011b).

RBV (Resource Based View)

RBV or resource-based theory came from penrose, 1959 (Hafeez, 2013; Kamyabi & Devi, 2011d,

2011b). RBV could defined as the complete ability of assets, organizational process, resources, company

atttibute information, and knowledge collected by the company to design and apply strategies (Hafeez,

2013). Barney (1991) classifies resources into three, namely physical, human dan organizational resources

(Hafeez, 2013). RBV has been used by companies to make outsourcing decisions, where it turns transaction

and opportunity costs into competitive advantage (Kamyabi & Devi, 2011d, 2011b). RBV also allows

SMEs to obtain access to and availability of resources, be it tangible or intangible, which will have positive

impact on performance (Jeronimo et al., 2019).

Basically, the main principle of RBV is that companies have a set of unique assets and resources, in

which if they are capable of utilizing them, then they will obtain competitive advantage (Tazilah et al.,

2019). Moreover, RBV serves as a framework which is helpful for outsourced accounting function when

SMEs have to deal with competitive pressure (Kamyabi & Devi, 2011a). Finally, RBV explains that

technical competence (Hafeez, 2013; Kamyabi & Devi, 2011d, 2011c) and competition level (Hafeez,

2013; Kamyabi & Devi, 2011d) are the vital factors which influence a company’s decision to use

outsourcing in performing its accounting function.

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

Asset specification on Company’s Decision to Use Outsourced Accounting Service
There are two general types of asset specification, namely physical assets (land, equipment,

machinery, and so on) and human assets (expertise, ability, knowledge, and so forth). A high asset

specification shows that the costs invested in physical facilities, human capital, and specific knowledge

(Zhang, Ma, & Qu, 2018). Based on the previous literature, it is said that asset specification is one of

important factors which determine the motivation to use outsourcing in TCE perspective (Altin, Uysal, &

Schwartz, 2018; Reza et al., 2017). Previous studies also suggest that asset specification is the most

important controller in outsourcing, such as financial accounting function, internal audit, and information

technology (Kamyabi & Devi, 2011a, 2011b, 2011d). Previous studies also find that asset specification has

a negative correlation with outsourcing (Altin et al., 2018), where the higher the asset specification level of

accounting activity the lower the intensity of accounting outsourcing activity (Hafeez, 2013; Kamyabi &

Devi, 2011b). A previous study also finds that asset specification is a significant determinant in the

decision to use outsourcing (Everaert et al., 2006).

H1: Asset specification has a negative significant influence on a company’s decision to use

outsourced accounting service.

Environment Uncertainty on A Company’s Decision to Use Outsourced Accounting Service

Environment uncertainty is another significant factor which influence the decision of outsourcing in

SMEs (Hafeez, 2013). Examples of the uncertainties in this case include the difficulty in predicting future

and technology development and inability to correctly evaluate the needed competences and activities

(Altin et al., 2018). This is supported by a previous study which suggests that the scope of uncertainty such

as uncertain demands and technology development (Reza et al., 2017). TCE assets that if a company can

predict and manage the workload related to the right management accounting practices, then the transaction

cost should be low and the company will outsource their accounting activity (Ellram, Tate, & Billington,

2008; Everaert et al., 2006). On the contrary, high uncertainty will create highly pricey costs to enter into a

contract with an external accounting firm (Everaert et al., 2006). Therefore, high environment uncertainty

makes outsourcing less interesting than insourcing (Reza et al., 2017). The statement above is supported by

another study which finds that environment uncertainty has a significant negative correlation with

accounting outsourcing (Hafeez, 2013).

H2: Environment uncertainty has a negative influence on a company’s decision to use outsourced

accounting service

Behavior Uncertainty on A Company’s Decision to Use Outsourced Accounting Service

Uncertainty refers to transaction risks which may occur before and after a contract agreement (Zhang

et al., 2018). A study indicates that behavior uncertainty is important in terms of performing an outsourced

accounting function (Hafeez, 2013). The term behavior uncertainty can be defined as the difficulty to

evaluate whether (internal or external) accountants performs their job accurately and whether they have

done their best with the ability they have (Everaert et al., 2006). Under an uncertainty, one depends on

several heuristic principles to simplify the complex tasks of evaluating probability and values from

alternatives (Chae, Lawson, Kull, & Choi, 2019). TCE predicts that the higher the behavior uncertainty in

management accounting function the higher the transaction costs would be and the accounting function

would be performed internally (Everaert et al., 2006; Kamyabi & Devi, 2011d). Results of a previous study

show that high behavior uncertainty makes a company prefer using their internal resources (Reza et al.,

2017). This statement is supported by previous studies which find that behavior uncertainty has a

significant negative influence on accounting outsourcing (Hafeez, 2013; Kamyabi & Devi, 2011d).

H3: Behavior uncertainty has a negative significant influence on a company’s decision to use

outsourced accounting service

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

Trust in Accountants on A Company’s Decision to Use Outsourced Accounting Service

Trust in this research means the trust put in the provider of outsouced accounting services, where the

trust in this case requires the owner/manager to expect that the outsourced accountant service providers (1)

have the expertise and ability, (2) are reliable to fulfill their legal obligations, (3) have consistent attitude,

(4) and will charge a cost which matches the accounting activities they provide (Everaert et al., 2006;

Kamyabi & Devi, 2011d, 2011b). TCE theory supports the view that when there is trust, it is possible to

lessen the formal control mechanism and the company is more likely to outsource their accounting function

to make it run (Kamyabi & Devi, 2011d, 2011b). A previous study also supports this, finding that when

trust is present between companies, it can reduce the transaction cost since it can limit uncertainty and

opportunism, reduce business risks, and be a source of competitive advantage (Blackburn et al., 2018). This

statement implies that the higher the trust in outsourced accountant service provider, the more likely the

SME owners/managers to prefer using outsourced accounting service to perform their accounting function.

This is supported by previous studies which find that trust has a significant positive correlation with

outsourced management accounting (Blackburn et al., 2018; Hafeez, 2013; Kamyabi & Devi, 2011a,

2011b).

H4: Trust in accountants has a significant positive influence on a company’s decision to use

outsourced accounting service

Technical Competence on Company’s Decision to Use Outsourced Accounting Service

Studies show that technical competence, in this case the accounting competence, is one of the factors

which significantly attract SMEs to outsource their accounting function (Hafeez, 2013). The competence of

outsourced accounting service shows their excellence as business advisors so that a competent outsourced

accountant can determine their clients needs (Blackburn et al., 2018). RBV theory suggests that technical

competence has a significant influence on outsourcing decision (Kamyabi & Devi, 2011d). RBV theory

argues that a professional external accountant is good to be placed to give comperative advantage over

internal accountants since they have the appropriate qualification, experience, specific skills, industrial

specialization, and the latest technology resources (Kamyabi & Devi, 2011d, 2011c). In line with RBV

theory, a previous study shows that competence has an influence on the use of accounting service by SMEs

(Kipsang & Mwangi, 2017). Furthermore, previous studies indicate that technical competence has a

positive correlation with management accounting outsourcing (Hafeez, 2013; Kamyabi & Devi, 2011d,

2011c).

H5: Technical competence has a significant positive influence on a company’s decision to use

outsourced accounting service

Competition Level on A Company’s Decision to Use Outsourced Accounting Service

RBV theory suggests that under a competitive circumstance, companies should be able to learn how

to exploit the resources available outside the business to help them become more competitive (Kamyabi &

Devi, 2011b). Thus, outsourcing service of management accounting function serves as a preferable strategy

for most SMEs to survive in the increasingly competitive market (Kamyabi & Devi, 2011d). Competition

has an influence on the use of accounting service by SMEs (Kipsang & Mwangi, 2017). This is sypported

by previous studies which find that competition level has a positive influence on outsourcing intensity

(Hafeez, 2013; Kamyabi & Devi, 2011d, 2011a, 2011b, 2011c).

H6: Competition level has a significant positive influence on a company’s decision to use outsourced

accounting service.

Impact of the Use of Outsourced Accounting Service on SME’s Performance

RBV perspective provides a set of resources, expertise and ability to study the strength of

competitive advantage, where it eventually influences performance (Hafeez, 2013). Meanwhile, the main

principle of TCE is related to the influence of options in organizational management to minimize

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

transaction costs, so that the company’s performance increases (Hafeez, 2013; Kamyabi & Devi, 2011b).

Outsourcing will improve a company’s performance for three reasons, namely (1) outsourcing have the

potential of reducing the company’s bureaucracy complexity; (2) outsourcing allows SMEs to meet its

production needs and mechanism to manage their economic scales with service provider specialists beyond

the company, risk transfer, and lower uncertainty; and (3) when outsourcing is more efficient, SMEs are

more likely to integrate and use its specific resources and capacity (Kamyabi & Devi, 2011b). Kamyabi &

Devi (2011c) study the correlation between the use of consultation service and SMEs’ performance and

find that a company’s performance may increase directly as long it makes a contract with external

accountant as its consultant. Previous studies also conclude that outsourced accounting has a significant

positive correlation with a company’s performance (Ganesan et al., 2018; Hafeez, 2013; Mwangi et al.,

2018).

H7: A company’s decision to use outsourced accounting service has a positive influence on SMEs’

performance

Based on this hypothesis development, the conceptual framework in this research is as follows:

Figure 1. Conceptual Framework

METHODS

Since there are some hypotheses the researchers have formulated and want to test, this research can

therefore be classified as explanatory research. The population used in this research is manufacturing SMEs

located in Malang Municipality. These SMEs from manufacturing sectors were chosen since, in the

researchers’ opinion, the application of management accounting in a manufacturing company is more

complicated and difficult than both services and trading companies. The exact number of manufacturing

SMEs in Malang Municipality is unknown since the data on the number of SMEs in Malang Municipality

was obtained as a whole, rather than classified based on their sector. The sample was taken using purposive

sampling method, i.e. a sampling technique which is adjusted to the research objective and done using

certain considerations (Sekaran and Bougie, 2010: 276-277) . The criteria for sampling in this research

Asset

specification

(x1)

Environment

Uncertainty(x2)

Behavior

Uncertainty(x3)

Trust in

Accountants (x4)

Technical

Competence (x5)

Competition Level

(x6)

Outsourced

Accounting

Service

(y1)

SME’s

Performance

(y2)

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

were based on the definition of SMEs in Indonesia based on Statistics Indonesia (BPS) and the businesses

which match the criteria under the applicable regulations, i.e. Law No. 20 Year 2008. 270 respondents were

needed, in which the number of indicators was multiplied by 5 (Hair, Jr, 2015).

The data used in this research were the primary ones. The term primary data mean the answers from

the respondents, in which these respondents were owners/managers/employees working for the SMEs

located in Malang Municipality. The data in this research were collected using a survey. The survey was

carried out by distributing questionnaire to the respondents who were also the research sample. The

questionnaire was adapted from previous studies (Hafeez, 2013; Kamyabi & Devi, 2011d, 2011b),

consisting of 54 question instruments (appendix 1). The researchers opted to personally bring the

questionnaire to the research location to the improve the respond rate.

This research have eight latent variables or constructs. The endogenous variables in this research

were SMEs’ performance and outsourced accounting service. The term SMEs’ performance had the same

meaning as the research conducted by Hafeez (2013), in which he classified company’s performance into

three categories, namely (1) financial performance, (2) non-financial performance, and (3) company’s

performance after using outsourced accounting service. Financial performance is shown by such indicators

as profitability, sales growth, return on asset, and cash flow, and non-financial performance will be shown

by lifestyle, independence, and job security. Outsourced accounting service played the role of a mediating

or interverning variable. The term outsourced accounting service provider here means a company providing

consultation services from their external or professional accountants which cooperate with SMEs to

perform these SMEs' management accounting function.

Furthermore, there were six exogenous variables, namely asset specification, environment

uncertainty, behavior uncertainty, trust in accountants, technical competence, and competition level. The

term asset specification here means the characteristics of assets owned by a company as a requirement to

use outsourced accounting service, be it physical or human assets. Environment uncertainty means

unstability and unpredictable changes in relation with the accounting workload as a result of business

process changes (Hafeez, 2013), and the term behavior uncertainty means the difficulty to measure

accountant’s performance in terms of their workloads based on the obligations assigned in SMEs (Hafeez,

2013). The term trust in accountants here means the trust that SMEs put in the provider of outsourced

accountant services (Kamyabi & Devi, 2011b, 2011d). Technical competence here is defined as external

accountants which have better specific skills, competence, market knowledge, qualification, and industry

experience than the internal accountant (Hafeez, 2013). Finally, competition level here means the

competition faced by SME actors in their business environment.

The constructs in this research were measured using 7-point Likert scale, where 1 was the lowest and

7 was the highest scores (appendix 1). The data in this research were analyzed using Path Analysis with

SEM. The data collected from the questionnaire were saved in Excel format for processing and analysis

using AMOS software.

RESULTS

Respondent Profile

The questionnaire were distributed personally to the respondents’ places. The questionnaire was

distributed in two occassions. Firstly, the researchers personally visited the respondents' places of business,

where the researchers provided some instructions and directives until the respondents finished completing

the research questionnaire. Secondly, the researchers came to the meetings organized by SME community

in Malang and distributed the questionnaire there. The questionnaire respond rate was 91.5 %, where out of

270 distributed questionnaires, 247 questionnaires were returned to the researchers. From these 247

questionnaires, 222 (90%) were processable, and the remaining 25 (10%) questionnaires could not be

processed. The number of samples had met the SEM analysis requirements, where it was effective when it

ranged from 150 to 400 samples (Haryono, 2017). The data on respondent profile in this research were

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

classified based on age, education level, position in SMEs, number of workers, and sales revenue in one

year. The detail of this respondent profile can be seen in the following table.

Table 1. Respondent Profile

Respondent Classification Number Percentage

Sex:

Male 88 39.64%

Female 134 60.36%

Total 222 100%

Education level:
Elementary 5 2.25%

Junior High 19 8.56%

Senior High 86 38.74%

Diploma 36 16.22%

Undergraduate 70 31.53%

Graduate 6 2.7%

Total 222 100%

Position in SME:

Owner 190 85.59%
Manager 8 3.60%
Employees 24 10.81%

Total 222 100%

From 222 collected research data, it could be seen that most respondents were female SME actors

(60.36%), and only 39.64% were male SME actors. Moreover, most respondents graduated from senior

high schools at 38.74%, and were followed by undergraduate education level (31.53%). Most respondents

were the SME owners themselves, hence they should have owned a sound understanding of their

management accounting function as per their business needs.

Furthermore, the level of use of outsourcing for management accounting function by respondents

could be seen from their answers in outsourced accounting service construct. This construct was measured

using 7-point Likert scale (appendix 1). The results of respondents’ answers in this construct could be seen

in table 2.

Table 2. Use of Outsourced Accounting Service by Respondents (in percentage)

Function Likert Scale

Accounting 1 2 3 4 5 6 7

Bookkeeping 82.4 1.8 2.7 1.4 3.2 5.4 3.2

Financial statement preparation 81.1 2.7 2.3 2.3 2.7 5.4 3.6

Payroll 80.6 2.7 3.6 2.3 5.0 4.5 1.3

Company Budget 80.6 2.3 2.7 1.4 3.6 6.8 2.7

Customer Profit Analysis 82.0 1.4 2.3 3.2 2.7 6.3 2.3

Product Costs 80.6 2.7 0.9 4.1 3.2 6.8 1.8

Financial Planning 80.6 1.8 2.7 2.7 1.4 7.7 3.2

Financial Management 81.1 1.4 4.1 2.3 1.4 7.7 2.3

Design/ Review of SPI 79.7 2.7 3.6 2.3 1.8 8.6 1.4

Based on the table above, it could be seen that most actors of SMEs in Malang Municipality opted to

use outsourcing in performing all of their management accounting functions. This was shown by fact that

most respondents’ answers were placed on Likert scale 1, where this Likert scale 1 showed that the SMEs

in manufacturing sector in Malang Municipality did not use outsourced accounting service at all.

Meanwhile, those using outsourced accounting service ranged only from 5.4% to 8.6% for each accounting

function. This showed that most actors of manufacturing sector SMEs in Malang Municipality lacked

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

awareness of utilizing outsourced accounting service to perform the management accounting function in

their businesses.

Validity and reliability tests

Every indicator which had met the validity assumption was convergent if CR > 2 x S.E and if its

probability value > 0.05 then it could be said as valid (Waluyo, 2016). Upon validity test, indicators Y2.1,

Y2.2, Y2.4, Y2.5, and Y2.7 were found invalid (appendix 2), hence these indicators were excluded.

Meanwhile, the other indicators were declared as valid, thus they could be used to measure the research

variables. Furthermore, the researchers carried out the reliability test. The reliability was tested using

construct reablity (CR) test, where it showed the reliability and consistency of the data. A variable was said

to be reliable if it had CR value > 0.7 (Waluyo, 2016). Furthermore, reliability was also measured based on

AVE value, in which the criterion was for the variable to have AVE value > 0.5 to be reliable. After

excluding the invalid indicators of SMEs’ performance, the calculation results (see appendix 3) showed

that all research variables could be said as reliable.

Model Goodness of Fit Test

The model goodness of fit was evaluated using criteria goodness of fit indices. The model criteria

and its critical values which had data goodness of fit were presented in the following table.

Table 3. Result of Model Goodness of Fit Test

Goodness of fit indices Cut of value* Analysis Result** Model

Evaluation

Chi Square Expected to be small 585.10 Good

Probablity ≥ 0.05 0.279 Good

CMIN/DF ≤ 2.00 1.278 Good

RMSEA ≤ 0.08 0.035 Good

GFI ≥ 0.90 0.952 Good

AGFI ≥ 0.90 0.919 Good

TLI ≥ 0.95 0.960 Good

CFI ≥ 0.95 0.924 Good

Based on the table above, it could be seen that all indices met the criteria of goodness of fit indices, hence it

was safe to say that the model fulfilled the goodness of fit with the data above.

Hypothesis Testing

The hypotheses in this research aimed at discovering the influence of asset specification,

environment uncertainty, behavior uncertainty, trust in accountants, technical competence, and competition

level on the use of outsourced accounting service in SMEs. Furthermore, they also aimed at finding out the

impact of such use of outsourced accounting service on SMEs’ performance. To test these hypotheses in

this research, SEM analysis with AMOS software was used. A hypothesis would be accepted if the values

of CR > 1.96 and p < 0.05 and it would be rejected if the values of CR < 1.96 and p > 0.05. Meanwhile, the

result of hypothesis testing calculation was as follows.

Table 4. Result of Hypothesis Testing

Variable Estimate S.E. C.R. P Label

Y1 <--- X1 -.364 .185 -1.971 .049 Negative, Significant

Y1 <--- X2 .559 .286 1.956 .050 Positive, Significant

Y1 <--- X3 .240 .215 1.115 .265 Positive, Insignificant

Y1 <--- X4 -.060 .188 -.320 .749 Negative, Insignificant

Y1 <--- X5 .476 .156 3.053 .002 Positive, Significant

Y1 <--- X6 -.648 .254 -2.548 .011 Negative, Significant

Y2 <--- Y1 1.072 .065 16.601 *** Positive, Significant

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

Based on the table above, the calculation of X1 on Y1 showed that the values of CR (1.971) > 1.96

and p (0.049) < 0.05. In addition, the estimate value (-0.364) indicated that the influence tended to be

negative one, hence hypothesis 1 was accepted. The calculation of influence of X2 on Y2 showed values of

CR (1,956) < 1.96; p (0.05); and estimate value 0.559, meaning that it had a positive and significant value.

This meant the second hypothesis was rejected.

The behavior uncertainty variable showed insignificant value, where p (0.265) > 0.05 and CR value

(1.115) < 1.96; and the estimate value showed a positive direction (0.240), thus the third hypothesis was

rejected. Likewise, the trust in accountants variable had insignificant value as shown by p value (0.749) >

0.05 and CR value (-0.320) < 1.96. Meanwhile, the estimate value showed a negative estimate direction (-

0.060), therefore the fourth hypothesis was rejected.

The calculation in table 4 above showed that the technical competence variable had values of CR

(3.053) > 1.96 and p (0.002) < 0.05. Additionally, the estimate value also indicated a positive value. Based

on this calculation, it could be said that the fifth hypothesis was accepted. Also, based the calculation in

table 4 it was found that the competition level variable had values of CR (2.548) > 1.96 and p (0.011) <

0.05; yet its estimate value showed a negative direction (-0.648), thus the sixth hypothesis was rejected.

Moreover, the hypothesis test was also carried out to figure out the effect of use of outsourced accounting

service (intervening variable) on SMEs’ performance. Based on the calculation in table 4 above, it could be

seen that the values of CR (16.601) > 1.96; p (0.000) < 0.05; and its estimate value was positive (1.072),

meaning that the seventh hypothesis was accepted.

DISCUSSION

Asset Specification on A Company’s Decision to Use Outsourced Accounting Service

Based on the hypothesis testing above, the first hypothesis was accepted, where the asset

specification had a negative significant influence on a company’s decision to use outsourced accounting

service. This finding was consistent with the research conducted by Everaert et al. (2006), Hafeez (2013),

and Kamyabi & Devi (2011b, 2011d, 2011a). This meant that the higher the asset specification owned by

SMEs, the more likely for SME actors in Malang Municipality to decide to not use outsourced accounting

service. Furthermore, this finding was also consistent with TCE theory which suggested that due to the high

asset specification, SMEs preferred performing their accounting activities internally to outsourcing their

accounting activities (Everaert et al., 2006). TCE model showed that when the management accounting

function contained high asset specification, the search for a professional accountant would take longer time

and harder contract negotiation (Kamyabi & Devi, 2011b).

Environment Uncertainty on A Company’s Decision to Use Outsourced Accounting Service

The research result indicated that the second hypothesis was rejected. This research did not support

TCE theory which stated that the higher the environment uncertainty level, the more pricey the outsourced

accounting service costs would be, leading SMEs to preferred not using outsourced accounting service.

This research result showed that the environment uncertainty variable had a significant positive influence

on a company’s decision to use outsourced accounting service.

This research result supported the research conducted by Altin et al. (2018), Everaert et al. (2006),

and Kamyabi & Devi (2011d). This showed that when SMEs were less capable of predicting their

accounting function, then it was more likely for these SMEs to opt for intensely using outsourced

accounting service (Everaert et al., 2006). This was because using outsourced accounting service could

help SMEs minimize the business risks they had to face, such as having no adequate internal accountant

resources when demands were high and on the other hand when demands were low, this internal accountant

tended to had nothing to do. Outsourcing their accounting function to an accounting service provider who

had expertise in their field, talent and superior resourcers helped SMEs to get more prepared in the face of

environment uncertainty in their business environment.

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

Behavior Uncertainty on A Company’s Decision to Use Outsourced Accounting Service

The hypothesis testing above showed that the behavior uncertainty variable had a positive

insignificant on SMEs’ decision to use outsourced accounting service. Hence, the third hypothesis was

rejected. This research finding supported the research previously conducted by Everaert et al. (2006),

where behavior uncertainty was not a significant driver of SMEs’ decision to use outsourced accounting

service. This research finding contradicted the TCE theory and the studies carried out by Hafeez (2013) and

Kamyabi & Devi (2011d). In the researchers’ humble opinion, this difference in this research result might

be due to the different characteristics of SMEs in Malang Municipality and those in the place of previous

studies. One of them was the fact that not all SME actors in Malang Municipality could apply well the

applicable regulations. This made SME actors have to face high behavior uncertainty situation and

therefore the decision to use outsourced accounting service was the right one, even if its influence was

insignificant.

Trust in Accountants on A Company’s Decision to Use Outsourced Accounting Service

Based on the calculation of hypothesis testing above, the fourth hypothesis was rejected, in which the

trust in accountants did not serve as a significant driver to use outsourced accounting service. The research

result showed that trust in accountants had a negative, yet insignificant influence on SMEs’ decision to use

outsourced accounting service. This research result did not support some previous studies (Kamyabi &

Devi, 2011d, 2011b), yet it supported another previous study (Everaert et al., 2006). This research finding

contradicted the view of TCE theory which suggested that when there was trust, companies were more

likely to outsource their accounting function (Kamyabi & Devi, 2011d, 2011b).

From this finding, it could be seen that trust was not a main factor for SMEs in deciding to whether

use outsourced accounting service or not. It was possible that this different research result was due to the

different characteristics of SME actors in Malang Municipality and those in the previous study locations,

where SME actors lacked care and awareness to apply the accounting function in running their businesses.

Andriani et al, (2014) suggest that it is more important for SMEs to earn more profits without having to

implement accounting (Cahyaningtyas, 2017). This lack of care might be because SME actors thought they

had not met the legal requirements to apply the accounting function. This was supported by Kipsang &

Mwangi's (2017) study who found that 86% of SME actors in Kenya disagreed with the statement that

SME actors had met the legal requirements to prepare the appropriate bookkeeping. Meanwhile, a previous

study found that the trust between external accountants and a company came from the development of an

existing relationship (Blackburn et al., 2018).

Technical Competence on A Company’s Decision to Use Outsourced Accounting Service

Judging from the hypothesis testing above, it was clear that the fifth hypothesis was accepted, where

it said that technical competence gave a positive siginificant influence on SMEs’ decision to use outsourced

accounting service. This research result was consisted with what Blackburn et al. (2018), Hafeez (2013),

and Kamyabi & Devi (2011d, 2011c) found. One of the top factors which influenced SMEs to use external

accountants was the technical competence superiority (Ganesan et al., 2018). The previous study in Kenya

also noted that many respondents indicated that qualification in accounting practice influenced the decision

to use outsourced accounting service (Mwangi et al., 2018)

This research finding was also consistent with RBV theory which argued that professional external

accountants were good to be placed to give comparative advantage for the appropriate qualification,

experience, specific skills, industry specialization, and latest technology resources they had (Kamyabi &

Devi, 2011d, 2011c; Nandan, 2010). Accountants and SME actors believed that the competence of external

accountants included various business advices, such SME actors’ compliance with the applicable

regulations and so on (Blackburn et al., 2018). Based on the explanation above, it could be seen that

technical competence was an important factor which affected the decision to use outsourced accounting

service by SME actors (Hafeez, 2013).

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

Competition Level on A Company’s Decision to Use Outsourced Accounting Service

Furthermore, the sixth hypothesis was rejected, where the hypothesis testing result showed that

competition level had a negative significant influence on the use of outsourced accounting service by

SMEs. This research finding contradicted RBV theory, in which this theory argued that under a competitive

circumstance, companies should be capable of learning how to exploid the resources available beyond their

business to help make them more competitive (Kamyabi & Devi, 2011b). This research result did not

support the previous studies (Hafeez, 2013; Kamyabi & Devi, 2011d, 2011b, 2011c). In the researchers’

opinion, there were some causes to this, including the facts that: (1) the research was conducted in a

different location and scope. The previous studies were conducted to cover countries, namely Iran and

Pakistan, and this research was conducted to cover much smaller location, namely Malang Municipality;

(2) SME actors in Malang Municipality lacked the awareness of how important it was to implement

management accounting practices in running their business, hence when these SME actors had to face a

high competition level, they focused more on its product innovation or marketing activities.

Impact of Use of Outsourced Accounting Service on SMEs’ Performance

Considering the fact that the seventh hypothesis was accepted, this research supported the findings of

previous studies (Ganesan et al., 2018; Hafeez, 2013; Kamyabi & Devi, 2011b, 2011c; Kotabe & Mol,

2009; Mwangi et al., 2018). Based on this research result, it could be seen that the decision to use

outsourced accounting service was an important factor in improving SMEs’ performance. Previous

research also suggested that external accountant (non-audit service) became their first choice for SME

actors to improve their business performance and maintain their business in a long run (Ganesan et al.,

2018).

This was because using outsourced accounting service could minimize risks, lowered bureaucracy

complexity, reduced overhead costs and uncertainty; allowed SMEs to achieve an economic scale in their

business production and operation as a whole, which in turn improved SMEs’ performance (Hafeez, 2013).

Even more than this, Back (1978, 1981 and 1985) found that minor companies which used accountant

service could minimize the possibility of liquidation, failure, business stagnation, and lacking access to

credits than those which did not use any accounting service (Kipsang & Mwangi, 2017).

CONCLUSION

Results of this research indicated that asset specification, environment uncertainty, technical

competence, and competition level were important factors which influenced SMEs’ decision to use

outsourced accounting service. Meanwhile, behavior uncertainty and trust in accountant had some

influence, yet it was insignificant on SMEs’ decision to use outsourced accounting service. In addition, this

research’s findings showed that the use of outsourced accounting service influenced SMEs' performance,

where SMEs’ performance could increase when SMEs decided to use outsourced accounting service. The

recommendations for further research include: (1) to expand the research area, not limited only to Malang

Municipality; (2) to involve SMEs in other sectors, and (3) to use perspectives other than TCE and RBV.

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APPENDIX

Appendix 1. Instrument and Construct Measurement

No Construct and Its

Measurement

Instrument Source

1 Performance (Y2)

1= Highly unimportant to 7

= highly important

1. Profitability
2. Sales growth
3. Return on Asset
4. Cash Flow
5. Lifestyle
6. Independence
7. Job security

(Hafeez, 2013; Kamyabi &

Devi, 2011b)

Performance (Y2): After

using outsourced

accounting service

1 = highly dissatisfied to 7

= highly satisfied

1. Profitability
2. Sales growth
3. Return on Asset
4. Cash Flow
5. Lifestyle
6. Independence
7. Job security
8. Outsourcing can give contribution

to competence and competitive

advantage

9. Outsourcing can make SMEs aware
of the goals to be achieved

10. Companies are satisfied with the
performance of outsourced

accounting service provider

(Hafeez, 2013; Kamyabi &

Devi, 2011b)

2 Outsourced accounting

service (Y1)

1 = not using outsourced

accounting service at all to

7= totally using outsourced

accounting service

1. Bookkeeping
2. Financial statement preparation
3. Accounting payroll
4. Budget/forecasting
5. Customer profitability analysis
6. Product costs
7. Financial planning
8. Financial Management Service
9. Design/Review of SPI

(Hafeez, 2013; Kamyabi &

Devi, 2011d, 2011b)

3 Asset specification (X1)

1 = strongly disagree to 7 =

strongly agree

1. Performing regular accounting tasks
2. Performing non-regular accounting

tasks

3. The way the consultants perform the
accounting tasks

4. Costs
5. Accounting application

(Hafeez, 2013; Kamyabi &

Devi, 2011b, 2011d)

4 Environment uncertainty

(X2)

1 = strongly disagree to 7 =

strongly agree

1. Regular accounting task variation
(previous year)

2. Non-regular accounting task
variation (previous year)

3. Relevant changes in business

(Hafeez, 2013; Kamyabi &

Devi, 2011d)

5 Behavior uncertainty (X3)

1 = strongly disagree to 7 =

strongly agree

1. Product cost calculation
2. Making budget/ forecast
3. Calculation of profit analysis
4. Business strategy planning

(Kamyabi & Devi, 2011d)

6 Trust in accountants (X4)

1 = strongly disagree to 7 =

strongly agree

a. outsourced accountant service
provider has the expertise and ability,

b. Reliable to meet the legal
obligations,

c. Owns consistent attitude,

(Hafeez, 2013; Kamyabi &

Devi, 2011b, 2011d)

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

d. Charged appropriately according to
the accounting activities provided

7 Technical competence (X5)

1= highly incompetent -7=

highly competent

1. Specific industry with vast
knowledge

2. Expert in internal control
3. Experienced and qualified
4. Capable of understanding your

company extensively

5. Expert in Accounting Computer
Information System (CIS)

6. Expert in risk management

(Hafeez, 2013; Kamyabi &

Devi, 2011d)

8 Competition level (X6)

1 = very weak competition-

7 = highly competitive

competition.

1. Product characteristic
2. Promotional strategy among

competitors

3. Access to distribution channels
4. Service strategy to customers
5. Product types

(Hafeez, 2013; Kamyabi &

Devi, 2011d)

Appendix 2. Table of Construct Validity Test

Variable Indicator Estimate S.E. C.R. P

Asset specification

(X1)

X1.5 1.000

X1.4 .926 .113 8.203 ***

X1.3 .739 .080 9.245 ***

X1.2 1.036 .077 13.410 ***

X1.1 1.047 .075 13.992 ***

Environment uncertainty (X2) X2.3 1.000

X2.2 1.119 .067 16.791 ***

X2.1 .969 .071 13.560 ***

Behavior uncertainty (X3) X3.4 1.000

X3.3 .977 .031 31.654 ***

X3.2 .901 .037 24.401 ***

X3.1 .845 .044 19.204 ***

Trust in accountants

(X4)

X4.4 1.000

X4.3 1.188 .059 20.239 ***

X4.2 1.174 .062 19.082 ***

X4.1 1.162 .062 18.706 ***

Technical competence (X5) X5.6 1.000

X5.5 .991 .054 18.351 ***

X5.4 .929 .055 16.859 ***

X5.3 1.025 .051 20.236 ***

X5.2 1.001 .052 19.254 ***

X5.1 .995 .051 19.491 ***

Competition level (X6) X6.5 1.000

X6.4 .789 .076 10.334 ***

X6.3 .841 .088 9.544 ***

X6.2 .672 .081 8.300 ***

X6.1 .937 .089 10.509 ***

Outsourced accounting service

(Y1)

Y1.9 1.000

Y1.8 1.074 .033 32.281 ***

Y1.7 1.107 .036 30.492 ***

Y1.6 1.067 .032 32.955 ***

Y1.5 1.066 .032 33.505 ***

Y1.4 1.088 .035 30.723 ***

Y1.3 .966 .032 29.818 ***

Y1.2 1.040 .039 26.542 ***

Y1.1 1.008 .040 25.465 ***

F. Cahyaningtyas, M. N. Ningtyas /Journal of Accounting and Business Education, 4 (2), Maret 2020

SME performance (Y2) Y2.17 1.000

Y2.16 1.053 .021 49.446 ***

Y2.15 1.031 .022 47.224 ***

Y2.14 .990 .022 44.532 ***

Y2.13 .935 .029 32.528 ***

Y2.12 1.058 .022 47.109 ***

Y2.11 1.044 .022 48.058 ***

Y2.10 .964 .021 46.669 ***

Y2.9 .983 .022 45.266 ***

Y2.8 1.003 .023 44.469 ***

Y2.7 -.030 .027 -1.138 .255

Y2.6 .314 .074 4.255 ***

Y2.5 -.060 .043 -1.386 .166

Y2.4 -.037 .030 -1.236 .217

Y2.3 .004 .031 .119 .906

Y2.2 -.036 .019 -1.870 .062

Y2.1 -.065 .022 -2.908 .004

Note: *** p = 0.001

Appendix 3. Table Hasil Reliability test

Variable CR AVE

Asset specification (X1) 0.981415301 0.9146204

Environment uncertainty (X2) 1.02045262 1.063707333

Ketdakpastian Perilaku (X3) 0.963864292 0.87008875

Trust in accountants (X4) 1.058978682 1.284966

Technical competence (X5) 0.996830436 0.9812955

Competition level (X6) 0.93057166 0.731871

Accounting Outsourcing (Y1) 1.009890729 1.096481556

SME performance (Y2) 0.991352168 0.923347