The Role of Accounting Department in Outsourcing Decision-Making (Case Study: Yazd Textile Industry)

Abstract

ABSTRACT The present study seeks to examine the role of accounting as an organizational department in outsourcing decision-making. This role has been analyzed in the firms operating in textile industry. The research models is composed of independent variables including intensity of competition, firm size, firm performance, cost-leadership strategy and differentiation strategy; while the dependent variable is the degree of the accounting department involvement in outsourcing decision-making. This is an applied correlation study and the required data are collected from the questionnaires distributed. The statistical population of this study includes those firms working in the textile industry of Yazd province and the sample is composed of 175 companies selected by stratified sampling. Pearson and Spearman correlation coefficients were used to analyze the data. The findings reveal that there is a positive significant relationship between intensity of competition and size with the degree of accounting department involvement in outsourcing decision-making. However, there is no significant relationship between performance, cost-leadership strategy and differentiation strategy with the degree of accounting department involvement in outsourcing decision-making. This study opens up new suggestions about the higher efficiency of the firm. Additionally, this is a valuable research because it provides useful information on outsourcing for the researchers and managers