The Measurement of Entrepreneurial Outsourcing: Preliminary Scale Development, Dimensionality Assessment, and Construct Validation

Abstract

Studying the outsourcing concept, as a strategy for efficient and effective business management, has been implemented less in the field of entrepreneurship. Accordingly, the present study aims to develop a measurement instrument for measuring entrepreneurial outsourcing construct utilizing empirical evidence in Iran’s telecommunications and automotive industries. Employing a sample of 203 senior managers and executive experts of companies operating in these industries, the gathered data were analyzed using PLS-SEM method. According to our results, the proposed scale of entrepreneurial outsourcing comprises six dimensions: strategic factors, economical factors, technological factors, task specifications, risk relating factors, and entrepreneurial performance. Moreover, the scale enjoys sufficient multidimensionality, reliability, and construct validity in terms of convergent and discriminate validity.