IDEAS home Printed from https://ideas.repec.org/a/vrs/auseab/v8y2020i1p5-18n1.html
   My bibliography  Save this article

Factors Influencing SME Outsourcing: Evidence from Romania

Author

Listed:
  • György Ottilia

    (Sapientia Hungarian University of Transylvania (Cluj-Napoca, Romania), Department of Economic Sciences)

  • Madaras Szilárd

    (Sapientia Hungarian University of Transylvania (Cluj-Napoca, Romania), Department of Business Sciences)

Abstract

The present research, based on a national representative survey analysis of SMEs (that is, small and medium enterprises) from Romania, focuses on the main factors influencing companies’ outsourcing. It considers the following dimensions of outsourcing: organizational characteristics, environmental characteristics, relational capabilities, and institutional networks. The results suggest that the younger the SMEs and the more stable their relationship with local institutions, the more likely is for them to adopt outsourcing solutions. Moreover, those SMEs that have secondary offices and have some cooperation with the state also rely on outsourcing. Our results suggest that sector membership also proves to be a signifficant factor in outsourcing. We ffind that the highest percentage of outsourcing was done in construction, industry as well as hotels and restaurants sectors.

Suggested Citation

  • György Ottilia & Madaras Szilárd, 2020. "Factors Influencing SME Outsourcing: Evidence from Romania," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 8(1), pages 5-18, October.
    • Handle: RePEc:vrs:auseab:v:8:y:2020:i:1:p:5-18:n:1
    DOI: 10.2478/auseb-2020-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/auseb-2020-0001
    Download Restriction: no
    File URL: https://libkey.io/10.2478/auseb-2020-0001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 267-288.
    2. João Teixeira, 2014. "Outsourcing with long term contracts: capital structure and product market competition effects," Review of Quantitative Finance and Accounting, Springer, vol. 42(2), pages 327-356, February.
    3. Ioan I. ANDONE & Vasile Daniel PAVALOAIA, 2010. "Outsourcing the Business Services," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 14(1), pages 163-171.
    4. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    5. Robert J. Bennett & Paul J. A. Robson, 1999. "The use of external business advice by SMEs in Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 155-180, April.
    6. J. B. Arbaugh, 2003. "Outsourcing Intensity, Strategy, And Growth In Entrepreneurial Firms," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 89-110.
    7. Graf, Michael & Mudambi, Susan M., 2005. "The outsourcing of IT-enabled business processes: A conceptual model of the location decision," Journal of International Management, Elsevier, vol. 11(2), pages 253-268, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberto Antonietti & Giulio Cainelli, 2008. "Production Outsourcing, Organizational Governance and Firm’s Technological Performance: Evidence from Italy," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1), pages 51-69, February.
    2. Jui-Kou Shang & Wei-Ting Hung & Fei-Ching Wang, 2008. "Service outsourcing and hotel performance: three-stage DEA analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1053-1057.
    3. Ohnemus, Jörg, 2009. "Productivity effects of business process outsourcing: a firm-level investigation based on panel data," ZEW Discussion Papers 09-088, ZEW - Leibniz Centre for European Economic Research.
    4. Lilian Nanjala Wabwile & G.S. Namusonge, 2015. "Determinants of Outsourcing as a Competitive Strategy in Supply Chain Management of Manufacturing Companies in Kenya (A Case Study of East African Breweries Limited)," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(5), pages 190-202, May.
    5. Ohnemus, Jörg, 2007. "Does IT Outsourcing Increase Firm Success? An Empirical Assessment using Firm-Level Data," ZEW Discussion Papers 07-087, ZEW - Leibniz Centre for European Economic Research.
    6. Jose A. Belso-Martinez, 2010. "Outsourcing Decisions, Product Innovation and the Spatial Dimension: Evidence from the Spanish Footwear Industry," Urban Studies, Urban Studies Journal Limited, vol. 47(14), pages 3057-3077, December.
    7. P. Everaert & G. Sarens & J. Rommel, 2006. "Outsourcing of Accounting Tasks in SMEs: An extended TCE Model," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/409, Ghent University, Faculty of Economics and Business Administration.
    8. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    9. Dermot Leahy & Catia Montagna, 2006. "'Make-or-Buy' in International Oligopoly and the Role of Competitive Pressure," Dundee Discussion Papers in Economics 197, Economic Studies, University of Dundee.
    10. Fabian Kreutzer & Wolfram Berger, 2022. "Does offshoring boost productivity? A comparison of SMEs and large firms for Germany," Economics and Business Letters, Oviedo University Press, vol. 11(2), pages 46-52.
    11. Mari Maté-Sánchez-Val & Antonia Madrid-Guijarro, 2011. "A spatial efficiency index proposal: an empirical application to SMEs productivity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 353-371, October.
    12. Bernd Görzig & Andreas Stephan, 2002. "Outsourcing and Firm-level Performance," Discussion Papers of DIW Berlin 309, DIW Berlin, German Institute for Economic Research.
    13. Framarz Byramjee & Parimal Bhagat & Andreas Klein, 2010. "The Moderating Role Of Relationship Quality In Determining Total Value Orientation," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(2), pages 49-62.
    14. Derya Fındık & Aysıt Tansel, 2013. "Intangible investment and Technical efficiency: The case of software-intensive manufacturing firms in Turkey," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 235, Ekonomik Yaklasim Association.
    15. repec:tkp:ijsrsy:v:2:y:2012:i:2:p:73-91 is not listed on IDEAS
    16. Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 217-247, June.
    17. Ameknassi, Lhoussaine & Aït-Kadi, Daoud & Rezg, Nidhal, 2016. "Integration of logistics outsourcing decisions in a green supply chain design: A stochastic multi-objective multi-period multi-product programming model," International Journal of Production Economics, Elsevier, vol. 182(C), pages 165-184.
    18. Leahy, Dermot & Montagna, Catia, 2012. "Strategic investment and international outsourcing in unionised oligopoly," Labour Economics, Elsevier, vol. 19(2), pages 260-269.
    19. Valle, Sandra & García, Francisco & Avella, Lucía, 2015. "Offshoring Intermediate Manufacturing: Boost or Hindrance to Firm Innovation?," Journal of International Management, Elsevier, vol. 21(2), pages 117-134.
    20. Jensen, Peter D. Ørberg, 2012. "A passage to India: A dual case study of activities, processes and resources in offshore outsourcing of advanced services," Journal of World Business, Elsevier, vol. 47(2), pages 311-326.
    21. David Paton & Leighton Vaughan Williams, 2007. "Broadcasting Productivity Growth in the UK," Occasional Papers 20, Industrial Economics Division.

    More about this item

    Keywords

    SMEs; outsourcing; business relationships;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:auseab:v:8:y:2020:i:1:p:5-18:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.