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Forecasting the Outsourcing Use in Small and Medium-Sized Enterprises: A Multiple Regression Model

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  • Michal Cioch

Abstract

Purpose: The purpose of the study was to examine the relationship between the effects of outsourcing implementation and the decisions to use outsourcing by small and medium-sized enterprises in the short term. Design/Methodology/Approach: The research objective was achieved using the effects of outsourcing implementation, selected on the basis of the literature review and recorded among the surveyed enterprises. The study was conducted by survey method using CAWI method, the research sample was 278 small and medium-sized enterprises. Based on the data obtained, two multivariate regression models were created, the first predicting the propensity to use outsourcing in the coming year, and the second in the two to three year perspective. Each is based on the same five independent variables, which were pre-selected effects of outsourcing implementation. Findings: The results of the study suggest that multivariate regression models can be successfully used to predict the use of outsourcing by small and medium-sized enterprises over short periods. Regression analyses showed significant relationships between the independent variables and the propensity to use outsourcing. The first model explained almost 90% of the variation, and the second model, despite a lower coefficient of determination (over 60%), was also statistically significant. The research points to potential practical applications of the applicability of preduction models in the management of outsourcing in small and medium-sized enterprises, especially in the context of supplier quality. Practical Implications: Despite limitations such as selected implementation effects and the characteristics of the research sample, predictive models can help companies predict the effects of short-term outsourcing decisions. Which may be important for small and medium-sized enterprises, which often have limited resources. Originality/Value: To fully understand enterprise process delegation decisions, research should continue, taking into account the broader scope and diversity of factors influencing SMB decisions.

Suggested Citation

  • Michal Cioch, 2024. "Forecasting the Outsourcing Use in Small and Medium-Sized Enterprises: A Multiple Regression Model," European Research Studies Journal, European Research Studies Journal, vol. 0(Special B), pages 456-472.
    • Handle: RePEc:ers:journl:v:xxvii:y:2024:i:specialb:p:456-472
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    More about this item

    Keywords

    Turbulent environment; outsourcing effects; prediction; supplier management; SME; CAWI.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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