Rare are the empirical studies that analyze the relationship between outsourcing and performance, and these are restricted to the motivations that incentivize firms to outsource.
While some including those of Gyemang, et al. (2014); Suraju & Hamed (2013); Akewushola, and Elegbede (2013); Irefin, Olateju, & Hammed (2012); Awolusi (2012); Nazeri, Gholami & Rashidi (2012); Hayes, et al. (2000), presented a positive effect, those of Isaksson &Lantz (2015); Yeboah (2013) and Gilley, et al. (2004); found out no effect or relationship between outsourcing and performance.
India is outsourcing outsourcing.
As noted here, previous research findings have proved contradictory results on the effect of outsourcing strategy on performance.
In tracing the relevance of outsourcing to organizational performance also, many authors including Quinn, (1992); Gupta and Zheuder, (1994); Greer et al., (1999); Lever, (1997); Sharpe, (1997); Steensma and Corley, (2000); Yalokwu (2006) and Dominguez (2006) submitted that, outsourcing can improve organizational performance when applied as an organizational strategy.
The main research objective was to determine the exact effect of outsourcing strategies on the performance of SMEs, hence, the following questions are asked; i.
To examine the axiomatic relationship between outsourcing strategy and organizational performance in Nigeria manufacturing sector, Akewushola, and Elegbede (2013) adopted a stratified sampling technique to arrive at 120 sample elements for the study.
In terms of empirical studies, the researches reviewed herein and several others consulted did not show clearly how various outsourcing strategies affect the performance of SMEs in terms of profitability and also in a developing country environment like that of Nigeria.
Where: Perf = performance Outs = outsourcing Strategy.
