Breaking Barriers: Unveiling SME Resistance to Strategic Accounting Practices-A Three-Phase Analysis

This study employs Principal Component Analysis (PCA) to explore the key factors hindering the adoption of strategic accounting practices among small and medium enterprises (SMEs) in Gombe metropolis. The analysis identifies three critical components accounting for 60.61% of the total variance: skill and manpower challenges, financial and administrative inefficiencies, and workforce instability. The findings highlight the significant role of human resource limitations, inadequate financial management, and high employee turnover in impeding SME performance. The results align with previous studies and theoretical perspectives, such as the Resource-Based View, Herzberg’s Two-Factor Theory, and Schumpeter’s Innovation Theory, emphasizing the multifaceted nature of these challenges. Policy recommendations include investment in skill development programs, financial literacy initiatives, and employee retention strategies to enhance SME resilience and competitiveness.