Title: Do outsourcing and non-outsourcing New Zealand SMEs perform and perceive international outsourcing differently?

Authors: Revti Raman; Atif Ahmad

Addresses: Victoria Business School, Victoria University of Wellington, P.O. Box 600, Wellington 6140, New Zealand ' Downstream Strategic Planning Division, Patronas Nasional Berhad, Kula Lumpur 50088, Malaysia

Abstract: International outsourcing of goods and services has become an integral part of the value chain of many firms. However, most outsourcing research relates to MNEs, with little emphasis on SMEs. This study aims to address this significant gap in research by focusing on international outsourcing perception and performance differences between outsourcing and non-outsourcing manufacturing SMEs in New Zealand. Based on a sample of 74 New Zealand SMEs within the manufacturing sector, the findings suggest that SMEs engaged in international outsourcing perform significantly better than non-outsourcing SMEs. Both outsourcing and non-outsourcing SMEs have similar perceptions regarding outsourcing challenges. However, the former perceive outsourcing benefits more favourably. The findings are discussed in light of resource based view and core competency theory of the firm.

Keywords: outsourcing SMEs; performance; small and medium-sized enterprises; globalisation; New Zealand; non-outsourcing SMEs; international outsourcing; manufacturing SMEs; resource based view; RBV; core competency theory.

DOI: 10.1504/IJGSB.2013.056852

International Journal of Globalisation and Small Business, 2013 Vol.5 No.4, pp.273 - 289

Received: 19 Jun 2012
Accepted: 31 Mar 2013
Published online: 27 Dec 2013 *

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