6. Discussion
Our study reveals that outsourcing activities positively enhance firm performance and this relationship is moderated by the measure of firm performance captured (financial, operating and relational). Post hoc analysis suggests that outsourcing is positively related to financial performance, operating performance and relational performance. Our study also suggests that the nature of the sample also affects the relationship between outsourcing and the firm performance. Studies with manufacturing industry, US samples, non-US samples, primary data, service industry only moderates the relationship. However, the post hoc univariate analysis above suggests that studies with both manufacturing and service industries, combination of US samples and non-US samples, both primary and secondary data, service industry are what is important when the nature of the sample used in the study is investigated. Additionally, our study reveals that IT outsourcing is the only type of outsourcing that had significant effects on firm performance in comparison to other forms of outsourcing when we looked at the effect of the different types of outsourcing. This explains the current trend in the industry as a major proportion of outsourcing is related to IT functions. This study also sheds some light on other aspects of outsourcing. Even though there is an increasing trend of retail manufacturing being outsourced to countries such as China, there are no conclusive results to suggest whether it would lead to improved performance for manufacturing firms. Our study also encourages firms to rethink the longitudinal benefits of HR and manufacturing outsourcing to outside countries. The results reinstate the fact that IT outsourcing is less costly to implement in organizations because there are little or no large financial investments made involving factors such as machinery, factories, equipment and land in comparison to manufacturing and HR. Additionally, there is no significant switching cost when it comes to changing one business partner to another as most of the IT resources used are intangible by nature.