Seeking a Sustainable Technology of Governance to Support Small and Medium Enterprises: A Study from the ASEAN Countries

The study aims to provide a better understanding with respect to key institutional environment and challenges associated with the adoption of technology of governance by small and medium enterprises (SMEs) in ten countries of the Association of the Southeast Asia Nations (ASEAN). The empirical data of the study was collected from a survey of 200 professional accountants in 10 ASEAN countries, in-depth interviews with 65 participants including the owners of SMEs, regulators, and government officials in the region. We find that although all ASEAN countries recognize the significant economic role of SMEs, incoherent and contradictory definitions of SMEs across ASEAN countries persist. Beyond this, there is a naive assumption among policy makers and the accounting profession who believe that the success of SME companies is how to become a big company like a multinational firm. Unfortunately, such an assumption has an impact on policy making in support of SMEs. Consequently, training, skills uptakes and technological support provided by the accounting, professional, international, and governmental bodies in the ASEAN also fail to meet the real needs of SMEs from the economic and sustainability perspective of these entities. The study warns that micro-entrepreneurs have been excluded from all accounting service processes, standard-setting processes and government support according to the needs of SMEs. Finally, this study provides recommendations for government agencies, accounting professional bodies and standard setters across the ASEAN to enhance the existing roles of SMEs in the future with the support of sustainable technology of governance.