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The objective of this study is to demonstrate the relationship betweenoutsourcing of core and non-core activities and integrated firm-levelperformance (IFLP) consisting of competitive, financial, strategic, andstakeholders’ performance. Empirical data was collected from manufacturingsmall and medium size enterprises (SMEs) in Quebec that outsource, usinga web-based questionnaire. A linear regression analysis was performed toestablish the relationship between outsourcing and IFLP. The findings showthat outsourcing of non-core activities and insourcing (internalization) of coreactivities have a positive impact on a firm’s integrated performance. The findingsalso demonstrate that offshore outsourcing enhances the economic, social,and strategic performances of manufacturing SMEs, which enables them tothrive in the current volatile business environment. However, managers needto identify carefully functions that could be outsourced in order to determinetrade-offs between outsourcing and internalization. The broadness of theIFLP concept and the intrinsic complexity of offshore outsourcing tasks call forfurther study with larger samples.

Offshore Outsourcing of Core and Non-Core Activities and Integrated Firm-Level Performance: An Empirical Analysis of Québec Manufacturing SMEs