Analysis of Determinant Factors of Global Smes' Decisions in Selecting Offshore Accounting Vendors From Indonesia

Abstract

     The digital economy and remote work trends have increased global SMEs' reliance on offshore accounting services. Despite Indonesia's potential in cost competitiveness, improving quality, and cultural proximity, its accounting vendors remain underrepresented compared to India and the Philippines. This study examines the influence of three determinants—Cost Competitiveness, Quality & Professionalism, and Cultural & Communication Fit—on global SME decisions to choose Indonesian accounting vendors. A quantitative survey was conducted on 85 SME owners/managers from the United States, Australia, and Singapore. Data were analyzed using multiple linear regression. Results indicate that all three factors have a significant positive effect, both partially and simultaneously (R² = 0.701, F = 63.287, p < 0.001). Cost Competitiveness is the most dominant factor (β = 0.351), followed by Cultural & Communication Fit (β = 0.336), and Quality & Professionalism (β = 0.292). The findings suggest that Indonesian accounting vendors should leverage cost advantages while enhancing cross-cultural communication and professional certifications to compete globally.