Factors affecting the application strategy of accounting standards in small and medium enterprises

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Abstract

This study is conducted to assess the impact of all factors on the application of accounting standards at small and medium enterprises (SMEs) in Northwestern Vietnam — one of the least developed areas in Vietnam. We utilized the research model developed by Tran (2015) and performed Cronbach’s alpha test, exploratory factor analysis (EFA) test, and multiple regression analysis to examine the five factors that impact the adoption of the Vietnamese Accounting Standards (VAS) in SMEs in Northwestern Vietnam. Ordered by decreasing impact, the factors are the knowledge and concerns of firm managers related to accounting, the development of accounting infrastructure, characteristics of the Vietnamese accounting system, the compulsory compliance of the accounting system, and the business performance of SMEs. Based on the findings, several recommendations have been proposed for businesses to manage disadvantages in the process of applying accounting standards, contributing to additional evidence for managers to pay more attention to the quality of accounting information in SMEs — which is not yet paid attention to by business managers, thereby improving the operational efficiency of SMEs.

Keywords: Accounting Standards, Small and Medium Enterprises, Application of Accounting Standards, Accounting, Factor

Authors’ individual contribution: Conceptualization — T.P.T.N.; Methodology — T.P.T.N.; Validation — T.P.T.N.; Writing — Review & Editing — T.P.T.N., O.T.T.L., and T.L.P.; Visualization — O.T.T.L.; Supervision — T.L.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M48

Received: 03.04.2024
Revised: 11.06.2024; 04.06.2025
Accepted: 19.06.2025
Published online: 23.06.2025

How to cite this paper: Nguyen, T. P. T., Le, O. T. T., & Pham, T. L. (2025). Factors affecting the application strategy of accounting standards in small and medium enterprises. Corporate & Business Strategy Review, 6(3), 37–54. https://doi.org/10.22495/cbsrv6i3art4