The Impact of Outsourcing on the Performance of Small and Medium Sized Industrial Companies in Jordan

Abstract: This study aimed at investigating the impact of outsourcing on the performance of Small and Medium Sized industrial companies in Jordan. The study population consisted of (20) Small and Medium Sized Industrial Companies in Jordan. The study used the questionnaire as the instrument for collecting the primary data, and the descriptive analytical methodology was used to analyze the data and achieve the study objectives. In order to test the study hypotheses, SPSS V.23 was used. The study revealed that there is a positive effect for both the outsourcing of the primary activities and the outsourcing of the secondary activities on the performance level of the Jordanian small and medium-sized industrial companies. Based on these results, the study recommended the necessity of urging small and medium-sized industrial companies in Jordan to adopt the outsourcing approach in order to enhance their performance and ensure their survival through obtaining the competitive advantage offered by outsourcing. Additionally, small and medium-sized industrial Jordanian companies should focus on forming strategic alliances with other companies, especially the value chain partnership to obtain the necessary capabilities that enable them to achieve a superior performance.