The effect of outsourcing on the non-financial performance of smes in the Mekong Delta

Abstract

The present study aimed to examine factors influencing the outsourcing decisions, and study on the impact of outsourcing on the non-financial performance of SMEs in the Mekong Delta. The data was collected by interviewing 379 SMEs which used outsourcing. The research methodology included Cronbach’s alpha test, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and Structural equation modeling (SEM). The results showed that outsourcing service had effects on the nonfinancial performance of SMEs. Mainly, the use of outside resources had the most potent effect on attracting customers and employees, as well as the efficiency of internal processes, innovation and organizational development.