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This act is unlike the large organizations which outsource more of their non core activities.
The choice of these two theories stems from the fact that, SMEs outsourcing entails both the core and non core activities.
The four strategies are further discussed below: Back office activities are the non core activities that an organization needs to pave way for the day to day running of their office/business.
This finding further supports resource-based thinking which as postulated by CK Prahalad and Gary Hamel stipulate that firms benefit more when resources are channeled towards core activities while the non core activities such as back office activities are contracted to an outside vendor (Prahalad & Hamel, 1990).
In addition, this finding further supports resource-based thinking which as postulated by CK Prahalad and Gary Hamel stipulates that, firms benefit more when resources are channeled towards core activities while the non core activities which here are merely supportive in nature are contracted to an outside vendor (Prahalad and Hamel, 1990).
Similar(55)
However, we found that focusing only on non-core activities may be a mistake.
Like many western companies, it has contracted out non-core activities such as catering and transport.
In response, companies have embraced specialization and outsourced non-core activities.
They want non-core activities, such as transport, storage, maintenance, accounting and health care to be privatised or outsourced.
For a start, Anglo needs to do more to shed "non-core" activities and concentrate on natural resources.
YouGov said yesterday that it has responded to its "disappointing performance" by cutting back on non-core activities and reducing operating costs.
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