Can outsourcing be the answer for developing economies? The case of Jordan Online publication date: Mon, 26-Sep-2022
by Saleh Fahed Alkhatib; Mohammad Ali Al-Omari
International Journal of Procurement Management (IJPM), Vol. 15, No. 5, 2022
Abstract: This study explores outsourcing activities, strategies and attitudes of firms in developing economies. The primary objective is testing whether or not outsourcing answers firms' questions in developing economies by analysing the impact of outsourcing types and levels on firms' abilities to survive and grow. A review of the outsourcing literature illustrates that firms in developing economies can apply outsourcing strategies to strengthen their limited resources and improve performance. Primary and secondary collected data from the Amman Stock Exchange (ASE) listed firms during the period from 2008-2018 have been analysed. Several findings regarding the types, attitudes, motives and expected benefits of outsourcing have been identified across the sectors. Despite the strong positive attitudes toward outsourcing within the Jordanian context, outsourcing did not have a clear beneficial effect on the firms' value and/or growth across the sectors.
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