The influence of outsourcing intensity on firm performance: the mediating role of environmental dynamism

Abstract

There are a lot of studies in the literature that mentioned the relationship between outsourcing and its influence on firm performance. But, little is known about how the environmental dynamism has to be considered in the outsourcing and firm performance relationship. Therefore, this study examines a mediated model of environmental dynamism. The aim of this study is to investigate the influence of outsourcing intensity on firm performance. It is also hypothesized that environmental dynamism would mediate the outsourcing intensity and firm performance relationship. Data of this study were collected from a sample of 318 participants, who are working full time within an organization. The results indicate that outsourcing intensity has a direct influence on firm performance and the environmental dynamism has a partial mediator role in the proposed model.