Background of the Study
Globalization has transformed the business landscape, integrating local markets into the global economy and introducing new challenges and opportunities for export-oriented SMEs. In Nigeria, particularly in Cross River State, globalization has prompted SMEs to adapt to international accounting standards and practices to remain competitive (Okechukwu & Akpan, 2024).
Export-oriented SMEs often face pressure to meet global compliance requirements, adopt advanced financial management tools, and maintain transparency in their accounting practices. While globalization fosters market access and operational efficiency, it also exposes SMEs to complexities such as fluctuating exchange rates, international taxation, and diverse regulatory environments. Understanding how globalization affects accounting practices is crucial for enhancing the competitiveness of these SMEs in international markets.
Statement of the Problem
Export-oriented SMEs in Cross River State encounter significant challenges in adapting their accounting practices to meet global standards. These include inadequate knowledge of international financial reporting standards (IFRS), limited resources to implement modern accounting systems, and difficulties in managing cross-border financial transactions (Nwachukwu & Effiong, 2023).
Despite the increasing importance of globalization, limited research explores its specific impact on the accounting practices of Nigerian export-oriented SMEs. This study aims to fill this gap by examining how globalization shapes accounting practices and the implications for SME performance.
Objectives of the Study
To analyze the impact of globalization on the accounting practices of export-oriented SMEs in Cross River State.
To identify the challenges faced by SMEs in adopting international accounting practices due to globalization.
To recommend strategies for aligning SME accounting practices with global standards.
Research Questions
How has globalization influenced the accounting practices of export-oriented SMEs in Cross River State?
What challenges do SMEs face in adopting international accounting practices due to globalization?
What strategies can help SMEs align their accounting practices with global standards?
Research Hypotheses
Globalization does not significantly influence the accounting practices of export-oriented SMEs in Cross River State.
The challenges faced by SMEs in adopting international accounting practices are not significant.
Strategies for aligning SME accounting practices with global standards do not significantly improve their performance.
Scope and Limitations of the Study
This study focuses on export-oriented SMEs in Cross River State, analyzing the influence of globalization on their accounting practices. Limitations include potential biases in self-reported data and the diversity of export sectors, which may affect the generalizability of findings.
Definitions of Terms
Globalization: The integration of local economies into the global economy through trade, investment, and technology.
Accounting Practices: Procedures and standards used by businesses to record, analyze, and report financial transactions.
Export-Oriented SMEs: Small and medium-sized enterprises primarily engaged in exporting goods and services.