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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

The Impact of Outsourcing on Performance and Competitive Priorities among Malaysian SMEs

The Impact of Outsourcing on Performance and Competitive Priorities among Malaysian SMEs
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Author(s): Hasliza Abdul Halim (Universiti Sains Malaysia, Malaysia), Noor Hazlina Ahmad (Universiti Sains Malaysia, Malaysia) and T. Ramayah (Universiti Teknologi Malaysia – Kuala Lumpur, Malaysia)
Copyright: 2018
Pages: 19
Source title: Operations and Service Management: Concepts, Methodologies, Tools, and Applications
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-5225-3909-4.ch059

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Abstract

The objective of this research is to examine the influence of outsourcing on financial performance and competitive priories of Malaysian SMEs. A data sample of 100 SMEs was analyzed to examine these relationships. The analysis was conducted via Partial Least Squares. Based on the findings, while outsourcing has significant influence of SMEs financial performance in Malaysian context, outsourcing activities do not have an impact on competitive priorities. Outsourcing approach emphasizing on the establishment of core competitive advantage, allows Malaysian SMEs to get the numerous benefits such as overall sales growth, market share, net profit, return on investment, and financial liquidity.

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