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FROM OUTSOURCING TO SMARTSOURCING DRIVING INNOVATION AND GROWTH THROUGH OUTSOURCING FOR SMES
Corresponding Author(s) : Munawaroh Munawaroh
International Research of Multidisciplinary Analysis,
Vol. 1 No. 1 (2023): International Research of Multidisciplinary Analysis
Abstract
There is some evidence in this article regarding the role of outsourcing for SMEs and the change in outsourcing to smartsourcing, seen in conventional outsourcing that has now shifted to advances in IT technology through big data and other applications. The review of this article is obtained from 35 scientific articles published by the author, where the majority of articles are research methods with case studies. The results of qualitative thematic descriptive analysis from Outsourcing to Smartsourcing Encouraging Innovation and Growth through Outsourcing For SMEs can be seen from SMEs that have expanded outsourcing in almost every area of operation, such as human resource management (HRM), IT, peripheral tasks, transaction levels, professions. and strategies, enhancing core competencies, and so on. The outsourcing of technology makes outsourcing into smartsourcing which is considered more effective, efficient and developing globally
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- Akbar (2010) ‘기사 (Article) 와 안내문 (Information) [’, The Eletronic Library, 34(1), pp. 1–5.
- Akbari, M. (2018) ‘Logistics outsourcing: a structured literature review’, Benchmarking, 25(5), pp. 1548–1580. doi: 10.1108/BIJ-04-2017-0066.
- Bautista, A. et al. (2020) ‘Strategic planning model to increase the profitability of an HR outsourcing SME through digital transformation’, Advances in Intelligent Systems and Computing, 1018, pp. 856–862. doi: 10.1007/978-3-030-25629-6_134.
- Belso-Martínez, J. A. (2010) ‘International outsourcing and partner location in the Spanish footwear sector: An analysis based in industrial district SMEs’, European Urban and Regional Studies, 17(1), pp. 65–82. doi: 10.1177/0969776409350789.
- Chu, J. (2016) ‘Human Resource Management Outsourcing Decision for Small and Medium-sized Enterprises in China’, International Business Research, 9(8), p. 64. doi: 10.5539/ibr.v9n8p64.
- Edvardsson, I. R., Durst, S. and Oskarsson, G. K. (2019) ‘Strategic outsourcing in SMEs’, Journal of Small Business and Enterprise Development, 27(1), pp. 73–84. doi: 10.1108/JSBED-09-2019-0322.
- Ferreira, V. et al. (2019) ‘A comprehensive supplier classification model for SME outsourcing’, Procedia Manufacturing, 38(2019), pp. 1461–1472. doi: 10.1016/j.promfg.2020.01.141.
- Di Gregorio, D., Musteen, M. and Thomas, D. E. (2009) ‘Offshore outsourcing as a source of international competitiveness for SMEs’, Journal of International Business Studies, 40(6), pp. 969–988. doi: 10.1057/jibs.2008.90.
- Halim, H. A. et al. (2017) ‘The Outsourcing Dilemma on Decision to Outsource Among Small and Medium Enterprises in Malaysia’, Global Business Review, 18(2), pp. 348–364. doi: 10.1177/0972150916668603.
- Halim, H. A., Ahmad, N. H. and Ramayah, T. (2012) ‘Probing into the issues of outsourcing among SMEs in Malaysia’, ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: ‘Empowering Decision Making with Statistical Sciences’, pp. 54–59. doi: 10.1109/ICSSBE.2012.6396526.
- Hamzah, A. K., Sulaiman, R. and Hussein, W. N. (2013) ‘A review on IT outsourcing approach and a proposed IT outsourcing model for Malaysian SMEs in e-Business adoption’, International Conference on Research and Innovation in Information Systems, ICRIIS, 2013, pp. 521–526. doi: 10.1109/ICRIIS.2013.6716763.
- Hirvonen, S. (2016) ‘From Outsourcing to Insourcing Brand Management: How Networking Helps SMEs to Become More Brand-Oriented?’, pp. 403–404. doi: 10.1007/978-3-319-11815-4_113.
- Hussin, H., Hasan, M. R. and Molok, N. A. (2010) ‘Exploring the perception and practices of IT outsourcing among Malaysia SMEs: Receivers perspective’, Proceeding of the 3rd International Conference on Information and Communication Technology for the Moslem World: ICT Connecting Cultures, ICT4M 2010. doi: 10.1109/ICT4M.2010.5971928.
- Irwin, K. C. et al. (2018) ‘Entrepreneurial orientation (EO) and human resources outsourcing (HRO): A “HERO” combination for SME performance’, Journal of Business Research, 90(September 2017), pp. 134–140. doi: 10.1016/j.jbusres.2018.05.016.
- Kartiwi, M. and Hasan, H. (2004) ‘Outsourcing: An Information Systems Development Case Study in an Indonesian SME’, Constructing the Infrastructure for the Knowledge Economy, pp. 675–681. doi: 10.1007/978-1-4757-4852-9_52.
- Kramer, T., Klimpke, L. and Heinzl, A. (2013) ‘Outsourcing decisions of small and medium-sized enterprises: A multiple-case study approach in the German software industry’, Proceedings of the Annual Hawaii International Conference on System Sciences, pp. 4236–4245. doi: 10.1109/HICSS.2013.441.
- Li, Y. and Zhao, D. (2011) ‘The study on sub-sectors of small and medium-sized enterprises engaging in service outsourcing in heilongjiang’, 2011 International Conference on Management Science and Industrial Engineering, MSIE 2011, pp. 889–893. doi: 10.1109/MSIE.2011.5707549.
- Malik, A. and Nilakant, V. (2011) ‘Extending the “size matters” debate: Drivers of training in three business process outsourcing SMEs in India’, Management Research Review, 34(1), pp. 111–132. doi: 10.1108/01409171111096504.
- Moon, K. K. L. et al. (2014) ‘Production Outsourcing: Perspectives from Small and Medium-sized Enterprises’, Research Journal of Textile and Apparel, 18(2), pp. 65–83. doi: 10.1108/RJTA-18-02-2014-B009.
- Nizar Souiden ;Marzouki Rani (2015) ‘기사 (Article) 와 안내문 (Information) [’, The Eletronic Library, 34(1), pp. 1–5.
- Van Peursem, K. and Jiang, L. (2008) ‘Internal audit outsourcing practice and rationales: SME evidence from New Zealand’, Asian Review of Accounting, 16(3), pp. 219–245. doi: 10.1108/13217340810906681.
- Principles, P. (no date) ‘Notice of Retraction An analysis of Service Outsourcing for SMEs To take Zhejiang China for an example’.
- Qian, F. and Xu, L. (2012) ‘Outsourcing approach in CRM for small and medium businesses’, Proceedings - 2012 9th International Conference on Fuzzy Systems and Knowledge Discovery, FSKD 2012, (Fskd), pp. 2742–2745. doi: 10.1109/FSKD.2012.6234025.
- Ren, S. J. F., Ngai, E. W. T. and Cho, V. (2011) ‘Managing software outsourcing relationships in emerging economies: An empirical study of the Chinese small- and medium-sized enterprises’, IEEE Transactions on Engineering Management, 58(4), pp. 730–742. doi: 10.1109/TEM.2010.2100400.
- Sabri, S. M. et al. (2015) ‘A review on IT outsourcing practices for e-business transformation among SMEs in Malaysia’, Conference Proceedings - 6th International Conference on Information Technology and Multimedia at UNITEN: Cultivating Creativity and Enabling Technology Through the Internet of Things, ICIMU 2014, pp. 124–129. doi: 10.1109/ICIMU.2014.7066616.
- Saleh Fahed Alkhatib, Robert Darlington, T. T. N. (2015) ‘Strategic Outsourcing : An International Journal Article information ’:, Strategic Outsourcing: An International Journal, 8(1), pp. 2–22.
- Sharma, R. R., Lindsay, V. and Everton, N. (2015) ‘Managing institutional differences for international outsourcing success the case of a small New Zealand manufacturing firm’, Journal of Small Business and Enterprise Development, 22(3), pp. 590–607. doi: 10.1108/JSBED-06-2012-0071.
- Shengjin, W. and Ming, X. (2011) ‘Selecting the mode of customer relationship management based on GAHP for small and medium enterprises’, Proceedings - 4th International Conference on Intelligent Computation Technology and Automation, ICICTA 2011, 1, pp. 1122–1124. doi: 10.1109/ICICTA.2011.282.
- Silva, Marlos; Teixeira, A. (2014) ‘Infrastructure Management Outsourcing ( RIMO ) TechnologIES for IT Outsourcing : FI4VDI project’, 43(Vdi).
- Solakivi, T. et al. (2011) ‘Logistics outsourcing and company performance of SMEs: Evidence from 223 firms operating in Finland’, Strategic Outsourcing: An International Journal, 4(2), pp. 131–151. doi: 10.1108/17538291111147982.
- Sun, F. Q., Di, C. and Liu, S. X. (2013) ‘E-commerce outsourcing service decision-making methods and strategy for small and medium-sized enterprises’, 2013 25th Chinese Control and Decision Conference, CCDC 2013, pp. 1710–1713. doi: 10.1109/CCDC.2013.6561207.
- Wallo, A. and Kock, H. (2018) ‘HR outsourcing in small and medium-sized enterprises: Exploring the role of human resource intermediaries’, Personnel Review, 47(5), pp. 1008–1023. doi: 10.1108/PR-03-2017-0066.
- Wolverton, C. C. et al. (2020) ‘Outsourcing success in the eye of the beholder: Examining the impact of expectation confirmation theory on IT outsourcing’, Information and Management, 57(6), p. 103236. doi: 10.1016/j.im.2019.103236.
- Yu, C. and Guilong, Z. (2008) ‘Study on industrial design outsourcing in new product development process in small and medium-sized enterprises’, 2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008, pp. 1–4. doi: 10.1109/WiCom.2008.2006.
- Zhao, Y. and Xu, L. (2009) ‘Research on performance evaluation of IT outsourcing service for small and medium-sized enterprises’, FBIE 2009 - 2009 International Conference on Future BioMedical Information Engineering, pp. 118–121. doi: 10.1109/FBIE.2009.5405863.
- Zhu, Z., Hsu, K. and Lillie, J. (2001) ‘Outsourcing – a strategic move: The process and the ingredients for success’, Management Decision, 39(5), pp. 373–378. doi: 10.1108/EUM0000000005473.
References
Akbar (2010) ‘기사 (Article) 와 안내문 (Information) [’, The Eletronic Library, 34(1), pp. 1–5.
Akbari, M. (2018) ‘Logistics outsourcing: a structured literature review’, Benchmarking, 25(5), pp. 1548–1580. doi: 10.1108/BIJ-04-2017-0066.
Bautista, A. et al. (2020) ‘Strategic planning model to increase the profitability of an HR outsourcing SME through digital transformation’, Advances in Intelligent Systems and Computing, 1018, pp. 856–862. doi: 10.1007/978-3-030-25629-6_134.
Belso-Martínez, J. A. (2010) ‘International outsourcing and partner location in the Spanish footwear sector: An analysis based in industrial district SMEs’, European Urban and Regional Studies, 17(1), pp. 65–82. doi: 10.1177/0969776409350789.
Chu, J. (2016) ‘Human Resource Management Outsourcing Decision for Small and Medium-sized Enterprises in China’, International Business Research, 9(8), p. 64. doi: 10.5539/ibr.v9n8p64.
Edvardsson, I. R., Durst, S. and Oskarsson, G. K. (2019) ‘Strategic outsourcing in SMEs’, Journal of Small Business and Enterprise Development, 27(1), pp. 73–84. doi: 10.1108/JSBED-09-2019-0322.
Ferreira, V. et al. (2019) ‘A comprehensive supplier classification model for SME outsourcing’, Procedia Manufacturing, 38(2019), pp. 1461–1472. doi: 10.1016/j.promfg.2020.01.141.
Di Gregorio, D., Musteen, M. and Thomas, D. E. (2009) ‘Offshore outsourcing as a source of international competitiveness for SMEs’, Journal of International Business Studies, 40(6), pp. 969–988. doi: 10.1057/jibs.2008.90.
Halim, H. A. et al. (2017) ‘The Outsourcing Dilemma on Decision to Outsource Among Small and Medium Enterprises in Malaysia’, Global Business Review, 18(2), pp. 348–364. doi: 10.1177/0972150916668603.
Halim, H. A., Ahmad, N. H. and Ramayah, T. (2012) ‘Probing into the issues of outsourcing among SMEs in Malaysia’, ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: ‘Empowering Decision Making with Statistical Sciences’, pp. 54–59. doi: 10.1109/ICSSBE.2012.6396526.
Hamzah, A. K., Sulaiman, R. and Hussein, W. N. (2013) ‘A review on IT outsourcing approach and a proposed IT outsourcing model for Malaysian SMEs in e-Business adoption’, International Conference on Research and Innovation in Information Systems, ICRIIS, 2013, pp. 521–526. doi: 10.1109/ICRIIS.2013.6716763.
Hirvonen, S. (2016) ‘From Outsourcing to Insourcing Brand Management: How Networking Helps SMEs to Become More Brand-Oriented?’, pp. 403–404. doi: 10.1007/978-3-319-11815-4_113.
Hussin, H., Hasan, M. R. and Molok, N. A. (2010) ‘Exploring the perception and practices of IT outsourcing among Malaysia SMEs: Receivers perspective’, Proceeding of the 3rd International Conference on Information and Communication Technology for the Moslem World: ICT Connecting Cultures, ICT4M 2010. doi: 10.1109/ICT4M.2010.5971928.
Irwin, K. C. et al. (2018) ‘Entrepreneurial orientation (EO) and human resources outsourcing (HRO): A “HERO” combination for SME performance’, Journal of Business Research, 90(September 2017), pp. 134–140. doi: 10.1016/j.jbusres.2018.05.016.
Kartiwi, M. and Hasan, H. (2004) ‘Outsourcing: An Information Systems Development Case Study in an Indonesian SME’, Constructing the Infrastructure for the Knowledge Economy, pp. 675–681. doi: 10.1007/978-1-4757-4852-9_52.
Kramer, T., Klimpke, L. and Heinzl, A. (2013) ‘Outsourcing decisions of small and medium-sized enterprises: A multiple-case study approach in the German software industry’, Proceedings of the Annual Hawaii International Conference on System Sciences, pp. 4236–4245. doi: 10.1109/HICSS.2013.441.
Li, Y. and Zhao, D. (2011) ‘The study on sub-sectors of small and medium-sized enterprises engaging in service outsourcing in heilongjiang’, 2011 International Conference on Management Science and Industrial Engineering, MSIE 2011, pp. 889–893. doi: 10.1109/MSIE.2011.5707549.
Malik, A. and Nilakant, V. (2011) ‘Extending the “size matters” debate: Drivers of training in three business process outsourcing SMEs in India’, Management Research Review, 34(1), pp. 111–132. doi: 10.1108/01409171111096504.
Moon, K. K. L. et al. (2014) ‘Production Outsourcing: Perspectives from Small and Medium-sized Enterprises’, Research Journal of Textile and Apparel, 18(2), pp. 65–83. doi: 10.1108/RJTA-18-02-2014-B009.
Nizar Souiden ;Marzouki Rani (2015) ‘기사 (Article) 와 안내문 (Information) [’, The Eletronic Library, 34(1), pp. 1–5.
Van Peursem, K. and Jiang, L. (2008) ‘Internal audit outsourcing practice and rationales: SME evidence from New Zealand’, Asian Review of Accounting, 16(3), pp. 219–245. doi: 10.1108/13217340810906681.
Principles, P. (no date) ‘Notice of Retraction An analysis of Service Outsourcing for SMEs To take Zhejiang China for an example’.
Qian, F. and Xu, L. (2012) ‘Outsourcing approach in CRM for small and medium businesses’, Proceedings - 2012 9th International Conference on Fuzzy Systems and Knowledge Discovery, FSKD 2012, (Fskd), pp. 2742–2745. doi: 10.1109/FSKD.2012.6234025.
Ren, S. J. F., Ngai, E. W. T. and Cho, V. (2011) ‘Managing software outsourcing relationships in emerging economies: An empirical study of the Chinese small- and medium-sized enterprises’, IEEE Transactions on Engineering Management, 58(4), pp. 730–742. doi: 10.1109/TEM.2010.2100400.
Sabri, S. M. et al. (2015) ‘A review on IT outsourcing practices for e-business transformation among SMEs in Malaysia’, Conference Proceedings - 6th International Conference on Information Technology and Multimedia at UNITEN: Cultivating Creativity and Enabling Technology Through the Internet of Things, ICIMU 2014, pp. 124–129. doi: 10.1109/ICIMU.2014.7066616.
Saleh Fahed Alkhatib, Robert Darlington, T. T. N. (2015) ‘Strategic Outsourcing : An International Journal Article information ’:, Strategic Outsourcing: An International Journal, 8(1), pp. 2–22.
Sharma, R. R., Lindsay, V. and Everton, N. (2015) ‘Managing institutional differences for international outsourcing success the case of a small New Zealand manufacturing firm’, Journal of Small Business and Enterprise Development, 22(3), pp. 590–607. doi: 10.1108/JSBED-06-2012-0071.
Shengjin, W. and Ming, X. (2011) ‘Selecting the mode of customer relationship management based on GAHP for small and medium enterprises’, Proceedings - 4th International Conference on Intelligent Computation Technology and Automation, ICICTA 2011, 1, pp. 1122–1124. doi: 10.1109/ICICTA.2011.282.
Silva, Marlos; Teixeira, A. (2014) ‘Infrastructure Management Outsourcing ( RIMO ) TechnologIES for IT Outsourcing : FI4VDI project’, 43(Vdi).
Solakivi, T. et al. (2011) ‘Logistics outsourcing and company performance of SMEs: Evidence from 223 firms operating in Finland’, Strategic Outsourcing: An International Journal, 4(2), pp. 131–151. doi: 10.1108/17538291111147982.
Sun, F. Q., Di, C. and Liu, S. X. (2013) ‘E-commerce outsourcing service decision-making methods and strategy for small and medium-sized enterprises’, 2013 25th Chinese Control and Decision Conference, CCDC 2013, pp. 1710–1713. doi: 10.1109/CCDC.2013.6561207.
Wallo, A. and Kock, H. (2018) ‘HR outsourcing in small and medium-sized enterprises: Exploring the role of human resource intermediaries’, Personnel Review, 47(5), pp. 1008–1023. doi: 10.1108/PR-03-2017-0066.
Wolverton, C. C. et al. (2020) ‘Outsourcing success in the eye of the beholder: Examining the impact of expectation confirmation theory on IT outsourcing’, Information and Management, 57(6), p. 103236. doi: 10.1016/j.im.2019.103236.
Yu, C. and Guilong, Z. (2008) ‘Study on industrial design outsourcing in new product development process in small and medium-sized enterprises’, 2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008, pp. 1–4. doi: 10.1109/WiCom.2008.2006.
Zhao, Y. and Xu, L. (2009) ‘Research on performance evaluation of IT outsourcing service for small and medium-sized enterprises’, FBIE 2009 - 2009 International Conference on Future BioMedical Information Engineering, pp. 118–121. doi: 10.1109/FBIE.2009.5405863.
Zhu, Z., Hsu, K. and Lillie, J. (2001) ‘Outsourcing – a strategic move: The process and the ingredients for success’, Management Decision, 39(5), pp. 373–378. doi: 10.1108/EUM0000000005473.