The Impact of Outsourcing Model on Supply Chain Efficiency and Performance in Smes: A Case of the Hospitality Industry

Abstract

Purpose: The study's main goal was to determine the impact of outsourcing models on supply chain efficiency and SMEs' performance in the hospitality industry. The qualitative research design was used to achieve the objectives.
 
 Theoretical framework: Outsourcing model is one of the key business trends experienced in the contemporary business sector. Outsourcing is an organizational operational approach in which a corporation hires a third party to perform planned or ongoing obligations. Whatever the case may be, it entails the transfer of people and assets from one business to another. The approach is concerned with establishing answers to the whys and how’s of the research question.
 
 Design/methodology/approach: Secondary data was entirely used to assess the research questions. Articles were obtained from the selected databases comprising Google Scholar, Science Direct, Scribed, Scopus, JSTOR, and DOAJ using the keywords. The PRISMA framework was used to appraise the articles and only 13 met the critical. Data was synthesized and analysed using the thematic approach.
 
 Findings: Outsourcing models have contributed significantly in enhancing the efficiency of the supply chain. Additionally, SME’s have portrayed improved performance after adopting the outsourcing models. This is closely associated and reflected by complimenting resources and capabilities, access to better and qualified personnel, high quality products and services, competitive prices and cost reduction.
 
 Research, Practical & Social implications: The incorporation of outsourcing models in hospitality industry is a mandatory exercise in the contemporary business sector Nevertheless, the strategy is instrumental in enhancing supply chain efficiency and improving the entire performance. In addition, outsourcing models are key trends in hospitality industry thus all the market should incorporate the conforming strategies to avoid stiff completion.
 
 Originality/value: The findings suggest several consequences forth fields of Outsourcing Model on Supply Chain Efficiency and Performance in SMES. Although outsourcing models are associated with multiple benefits, the implementation should be guided by expert depending on the model. Also, a link should be established between the research objectives, outsourcing model and strategic management.