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Outsourcing Strategies And Their Impact On Financial Performance In Small Manufacturing Firms In Sweden

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  • Anders Isaksson
  • Björn Lantz

Abstract

Outsourcing, i.e., the strategic use of outside resources to perform activities traditionally handled by internal staff and resources, have received increased attention in management practice around the world over recent decades. However, even though the main goal of outsourcing must be assumed to be improved financial performance, few researchers have been able to empirically establish this relationship. Furthermore, because most studies have been focusing on large firms, there is also a lack of knowledge on how small firms adopt outsourcing strategies. Therefore, the purpose of this study is to explore outsourcing strategies among small manufacturing firms, and to test how these strategies can be linked to financial performance. The study is based on questionnaire and financial data collected through a stratified sample of 700 small (

Suggested Citation

  • Anders Isaksson & Björn Lantz, 2015. "Outsourcing Strategies And Their Impact On Financial Performance In Small Manufacturing Firms In Sweden," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(4), pages 11-20.
    • Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:11-20
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    References listed on IDEAS

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    3. Gilley, K. Matthew & Greer, Charles R. & Rasheed, Abdul A., 2004. "Human resource outsourcing and organizational performance in manufacturing firms," Journal of Business Research, Elsevier, vol. 57(3), pages 232-240, March.
    4. Alain Verbeke & Liena Kano, 2012. "The Transaction Cost Economics Theory of the Family Firm: Family–Based Human Asset Specificity and the Bifurcation Bias," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1183-1205, November.
    5. Bustinza, O.F. & Arias-Aranda, D. & Gutierrez-Gutierrez, L., 2010. "Outsourcing, competitive capabilities and performance: an empirical study in service firms," International Journal of Production Economics, Elsevier, vol. 126(2), pages 276-288, August.
    6. Busenitz, Lowell W. & Barney, Jay B., 1997. "Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making," Journal of Business Venturing, Elsevier, vol. 12(1), pages 9-30, January.
    7. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    8. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
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    Cited by:

    1. John I. Agburu & Nyianshima Calvin Anza & Akuraun Shadrach Iyortsuun, 2017. "Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs)," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-34, December.
    2. Dinh Cong Thanh & Le Tan Nghiem & Nguyen Hong Gam & Pham Le Hong Nhung, 2022. "Study the impact of labor outsourcing on the financial performance of small and medium enterprises in Mekong Delta, Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 12(1), pages 67-83.

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    More about this item

    Keywords

    Outsourcing; Financial Performance; Small Firms; Sweden;
    All these keywords.

    JEL classification:

    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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