A Multiple Case Study Exploring the Impact of Economic Insecurities on Outsourcing Practices.

摘要

As globalization and cross border trading become more of a worldwide phenomenon, there is a greater need to understand how economic insecurities contributes to outsourcing practices. Previous research documented that small and medium-sized enterprises (SMEs) gained limited advantages from outsourcing. The purpose of this qualitative multiple case study design was to explore the impact of domestic economic insecurities on SMEs' decision to outsource. A semi-structured open-ended interview was used to collect data from the 13 participants from the furniture, bedding, and wooden industries in Jamaica related to the research questions. From the analysis of the data collected, 12 themes emerged: (a) raw materials, (b) cost factor, (c) statutory deductions, (d) crime, (e) security, (f) employee morale, (g) reduced productivity, (h) purchasing power, (i) taxation, (j) competitiveness, (k) affordability, and (l) market trends. The findings obtained from this research suggest that domestic economic insecurities contributed to outsourcing practices. This knowledge might change current views on the factors that lead to outsourcing and the benefits of this strategy to manufacturing SMEs from developing countries. The results may also contribute to more informed macroeconomic policies. The following recommendations emerged from the findings: (a) pool supply chain with existing small and medium-sized enterprises; (b) implement a three-tier crime plan; (c) hedge prices for procured goods; and (d) quote prices in the equivalent of the outsourcing currency. Future research directed at SMEs managers' perception of a specific economic insecurity, additional manufacturing industries, and adopting different methodological designs could generate more in-depth data and create a larger body of knowledge for comparisons.