The accounting challenges for indigenous businesses: a Pacific Islands case study

Abstract

Purpose

This paper aims to examine the accounting challenges faced by indigenous businesses in the wholesale and retail market in Tonga.

Design/methodology/approach

The data were collected through semi-structured interviews with 24 participants, from a mix of individuals from the wholesale and retail market in Tonga. This paper uses institutional logics framework to inform the study.

Findings

The research findings suggest an inability of indigenous businesses to adapt to significant changes in the market and overcome the economic and social challenges faced in the business environment involving accounting values. A lack of business skills and accounting knowledge, restrictive traditions and religious obligations and a poor business investment climate are key factors behind the inability of the indigenous Tongan businesses to succeed.

Research limitations/implications

The paper is limited to a study on Tonga only. The paper suggests better accountability from government sector on their effort to encourage inclusion of indigenous businesses.

Practical implications

The paper suggests better accountability from government sector on their effort to encourage inclusion of indigenous businesses. As a way forward, participants suggest that an inclusive approach for the government, businesses and stakeholders in policy formulation and consultation would create a better business environment that would foster the development and growth of the wholesale and retail business sector in Tonga. There is a dearth of cultural studies in accounting in countries within the developing world, particularly in the Oceania region.

Social implications

There are many accounting challenges faced by the indigenous Tongan business people in the market, which indicate specific areas where the attention of the policymakers should be directed. A better accountability from the government is needed on their efforts to encourage inclusion of indigenous businesses.

Originality/value

This paper extends the literature by considering inclusivity challenges for ethnically marginalised collectives of individuals in small business. The research findings suggest a gap in knowledge in the current business environment with respect to the Western accounting practices in the indigenous society.

Citation

Sharma, U. and Davey, H. (2024), "The accounting challenges for indigenous businesses: a Pacific Islands case study", Pacific Accounting Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/PAR-06-2024-0125