Outsourcing And The Competitiveness Of Enterprises, Enterprise Performance Relationship Study

In the 21th century, with the rapid development of information system and network technology, business environments are deeply changed, they are no longer seen as stable and predictable. Market diversification, products' lifecycle shorten, technologies' substitution, make companies can not deal with such fierce competitive environment only depend on their own resources. Therefore, outsourcing as a management pattern, is abstracting more companies' attention. On one hand, using outsourcing can help reducing cost , avoiding unnecessary capital plunging, getting more production capabilities outside, focusing on core competences, improving products' quality and dispersing firm risks. On the other hand, outsourcing may decline the organization's innovation ability, then make companies lose some producing technologies and capabilities;outsourcing may lead to decline the controllability of the activities which was operated inside before, and make outside suppliers growing up to be self-competitors;some companies may lose some development opportunities because of their focusing on too narrow activities. Therefore, whether the outsourcing influence company performance or not, and how influence? This paper research the question above in three areas below: (1) what're factors influencing company's outsourcing intension? (2) what're relations between company outsourcing intension and company competitive capabilities? (3) whether and how the outsourcing influence company's performance? Except researching on the direct relation between outsourcing and performance, we will use some competitive capabilities as variables for our researching on indirect relations between outsourcing and performance. That's to say, how outsourcing influence performance through company competitive capabilities? The results of our research are: the motivation of outsourcing nowadays is mainly to improve self-flexibility. Outsourcing can improve company's flexibility significantly, but it decline company's cost reduction ability and service ability. There is no significant relation between outsourcing and finance performance. There is also no significant relation between outsourcing and stakeholder performance. However, outsourcing can influence finance performance and stakeholder performance indirectly through competitive capabilities. Outsourcing can not only directly influence innovation performance, but also can indirectly influence innovation performance by competitive capabilities.