Theoretical Model to Analyze the Influence of Outsourcing on Industrial Business Value Creation

Abstract

This paper focuses on the discussion concerning the way how outsourcing decisions, regarding one or more of the companies’ functions, can positively affect the internal value creation process and, thus, business performance, in both quantitative and qualitative terms. Based on the existing literature about Outsourcing a theoretical model was conceptualized to analyze and evaluate the influence of outsourcing on industrial and business value creation. The investigation process involved the collection of data through a questionnaire, applied to a representative set of SME’s from the Portuguese economic fabric – resorting. The main conclusions to be taken from this research are: (i) that outsourcing does present a verifiable set of statistically relevant direct and indirect effects upon the internal value creation process and, moreover, (ii) that outsourcing does generate a positive, and statistically relevant, indirect effect on business performance, through the internal value creation process.