top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 10 February 2021

Barking Up the Wrong Tree: SMEs' Perception of Tax using the ZMET Method

Novita Puspasari, Eliada Herwiyanti, Margani Pinasti

Universitas Jenderal Soedirman, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.04.01.327

Pages: 147-156

Keywords: ZMET Method, Tax, Small Medium Enterprise, Mental Map, Consensus Map

Abstract

Small and Medium Enterprises (SMEs) has been a backbone for Indonesian economy over the years. This study aims to explore and gain an in-depth understanding of SMEs’ perceptions regarding tax imposed by the government. The study is a qualitative investigation in which nine in-depth interviews with SMEs were conducted based on the Zaltman Metaphor Elicitation Technique (ZMET). The findings reveal deep-seated perceptions in SMEs regarding to tax imposed on them. There are 24 elicited constructs which describe SMEs’ mental model of tax. The constructs are framed into four deep metaphors which reflect SMEs perceptions on tax: Distrust to the Government, Misclassification, Mistreatment and Disincentive. This study will contribute to provide suggestion to the government, particularly General Directorate of tax, that in order to give “stick” to SMEs, government may try to give “carrots” in SMEs tax cases. This study contributes to the use of ZMET as a data collecting method to examine issues that tend to be "sensitive". Previously, ZMET has been used widely in marketing research, however this research could prove that other topics of research could also use this method

References

  1. Abrie, W. and Doussy, E. (2006), ‘Tax Compliance Obstacles Encountered by Small and Medium Enterprises in South Africa’, Meditari Accountancy Research, Vol. 14 No. 1, pp. 1-13.

  2. Akinboade, O. A. (2015), ‘Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon’, Managing Global Transitions,Vol. 13 No. 4, pp. 389-413.

  3. Ameyaw, B., Joy A. K., Twum, E. T. and Owusu, I. (2016), ‘Tax Policy, SMES Compliance, Perception and Growth Relationship in Ghana: An Empirical Analysis’, British Journal of Economics, Management & Trade, Vol. 11 No. 2, pp. 1-11.

  4. Arnout, B., and Esposito, M. (2018), ‘The value of communication in turbulent environments: how SMEs manage change successfully in unstable surroundings’ International Journal of Entrepreneurship and Small Business vol. 34(4), pp. 500-515.

  5. Borges C., Bezerra, E, D., Glessia S., Andreassi, T., Ferreira, V.D.R. 2018. ‘Entrepreneurship policy in Brazil: its focus and gaps,’ International Journal of Entrepreneurship and Small Business, vol. 34(2), pp. 183-203.

  6. Blackburn, R., Carey, P. and Tanewski, G. (2018), "Business advice by accountants to SMEs: relationships and trust", Qualitative Research in Accounting & Management, Vol. 15 No. 3, pp. 358-384. https://doi.org/10.1108/QRAM-04-2017-0022

  7. Badan Pusat Statistik. Retrieved on March 14, 2018. https://www.bps.go.id/

  8. Danilet, M. and Stoian, V. (2017), ‘Using Zmet For Investigating the Role of Social Media In The Employment Process’, Review of Economics and Business Studies. Vol. 10 Iss. 1, pp. 9-32.

  9. Eragbhe, E. and Modugu, K. P. (2014), ‘Tax Compliance Costs of Small and Medium Scale Enterprises in Nigeria’, International Journal of Accounting and Taxation Vol. 2 No. 1, pp. 63-87

  10. Hasseldine, D. J., and Bebbington, K. J. (1991), ‘Blending Economic Deterrence and Fiscal Psychology Models in The Design of Responses to Tax Evasion: The New Zealand Experience’, Journal of Economic Psychology, Vol. 12, pp. 299-324. http://doi.org/10.1016/01674870(91)90018-O

  11. Huerta, E., Petrides, Y. and O’Shaughnessy, D. (2017), "Introduction of accounting practices in small family businesses", Qualitative Research in Accounting & Management, Vol. 14 No. 2, pp. 111-136. https://doi.org/10.1108/QRAM-01-2015-0008

  12. Inasius, F. (2015), ‘Tax Compliance of Small and Medium Enterprises: Evidence from Indonesia’, Accounting & Taxation, Vol. 7, pp 67-73.

  13. Kirchler, E., Hoelzl, E. and Wahl, I. (2008), ‘Enforced versus voluntary tax compliance: The ‘‘slippery slope’’ framework’, Journal of Economic Psychology, Vol. 29, pp. 210-225.

  14. Mansor, H. A. and Hanefah, M. (2008), ‘Tax Compliance Costs of Bumiputera Small and Medium Enterprises in Northern Malaysia’, IJMS, Vol. 15 No. 1, pp. 21-42.

  15. Ministry of Cooperative and Small Medium Enterprises. 2017. www.depkop.go.id

  16. Pleis, L. M. (2014), ‘A New Graduate Accounting Course for the Small Business Accountant’, Business Education Innovation Journal,Vol. 6 No. 2, pp. 70-73.

  17. Purwati, A. S., Suparlinah, I. and Putri, N. K. (2014), ‘The Use of Accounting Information in the Business Decision Making Process on SME in Banyumas Region, Indonesia’, Economy Transdisciplinary Cognition, Vol 17 No. 2, pp. 63-75.

  18. Rosdiana, H. and Irianto, E. S. (2014), Pengantar Ilmu Pajak Kebijakan dan Implementasi di Indonesia. Jakarta: PT Raja Grafindo Persada.

  19. Schmolders, G. (1959), ‘Fiscal Psychology: A New Branch of Public Finance’, National Tax Journal, Vol. 12 No. 4. http://www.jstor.org/stable/41790780

  20. Tilley, H. and Perrish, F. (2006), Small Industries in Developed Countries. Australia: Wombat Press.

  21. Transparency International. Retrieved on May 5, 2019. https://www.transparency.org/

  22. Undang-Undang Republik Indonesia No. 20 Tahun 2008 tentang Usaha Mikro, Kecil dan Menengah.

  23. Wu, C. H., Yan, Y. H. and Shu, K. M. (2018), ‘Projecting the Mental Model of Social Networking Site Usage’, Advances in Technology Innovation, Vol. 3 No. 1, pp. 36-42.

  24. Zaltman Metaphor-Elicitation Technique. Retrieved on February 2, 2020. http://olsonzaltman.com/zmet/

bottom of page