Unveiling the motivation to outsource among SMEs

Abstract

PurposeThe purpose of this paper is to understand further the concept of outsourcing among small and medium‐sized industries (SMEs). The paper highlights the concept of outsourcing between SMEs and large organizations as well as the advantages and disadvantages of SMEs' outsourcing from the theoretical perspectives.Design/methodology/approachThis is a conceptual paper based on an in‐depth literature review of outsourcing among SMEs.FindingsThe study is of value to SMEs not only in facilitating their acquaintance with the concept of outsourcing but also in enhancing their appreciation of outsourcing put into practice.Research limitations/implicationsThe contribution of this paper is more theoretical and others can test this empirically in the future to get a better understanding of this phenomenon among SMEs.Practical implicationsIt is crucial for SMEs to consider outsourcing their activities as a strategic tool to remain competitive in the dynamic environment.Originality/valueThis an under‐researched area whereby the practice of outsourcing among SMEs is elaborated.