Title: The influence of environmental dynamism on strategic outsourcing success: a partial least squares structural equation modelling approach

Authors: Mohamad Ghozali Hassan; Mohd. Rizal Razalli; Asmat-Nizam Abdul-Talib

Addresses: STML 4020 Bangunan Baru Blok C, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia ' Operations Management Department, School of Technology Management and Logistics, Universiti Utara Malaysia, Sintok UUM, 06010 Sintok, Kedah, Malaysia ' International Business Department, School of International Studies, Universiti Utara Malaysia, Sintok UUM, 06010 Sintok, Kedah, Malaysia

Abstract: Environmental dynamism is considered an increasingly important factor in creating competitive value by outsourcing management. The purpose of this study is to understand the relationship between environmental dynamism and outsourcing success. To meet this challenge, an empirical model was developed to investigate the role of environmental dynamism in strategic outsourcing success using two statistical tools, partial least squares and structural equation modelling. The results confirmed that the three dimensions of environment dynamism - namely customer demand, changes in technology and market competition level - have a significant positive effect on outsourcing success.

Keywords: environmental dynamism; strategic outsourcing; customer demand; technological change; market competition level; outsourcing success; partial least squares; PLS; structural equation modelling; SEM.

DOI: 10.1504/IJMOM.2014.067382

International Journal of Modelling in Operations Management, 2014 Vol.4 No.3/4, pp.229 - 247

Received: 04 Sep 2014
Accepted: 12 Nov 2014
Published online: 14 Feb 2015 *

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