A quantitative study on the relation between business process outsourcing, managerial communication, and work performance

Istanbul recently becomes a destination for foreigners entrepreneurs from different nationalities, hence the number of foreign small and middle-sized enterprises (SMEs) is increasing quickly. Foreign SMEs play a critical role in introducing local products or services to international markets while competing with multinational competitors in domestic markets. Since the business performance is reliant on the degree of competence of its work team and its strong managerial connections, the managers are supposed to give their employees a comfortable working environment, a good working relation, and an effective communication, also to outsource unnecessary tasks to a third party to take advantage of labour arbitrage while remaining focusing on business's area of expertise. This thesis comprehends the importance of managerial communication (MC) and business process outsourcing (BPO) in perceiving work performance, how BPO enhances MC between managers and employees, and to ascertain whether demographic factors have any impact on MC and BPO. Data is collected through convenience sampling from 201 managers and 302 employees working in foreign SMEs in Istanbul with two separate questionnaires. Survey responses are analysed with frequency, reliability, correlation, T-test, Anova, and regression techniques.The findings show that effective MC between managers and employees enhances in perceiving performance. Additionally, BPO increases value, improves work performance, and allows a company to focus on its employees thus providing better MC levels. As a result, there is a relation between BPO and MC. Furthermore, the age of the employees in SMEs strongly affects the MC scores. Additionally, it is discovered that the managers' understanding of MC is impacted by educational background, nevertheless BPO scores differ based on demographic factors such as age, gender, level of education, and work experience. This thesis contributes to the literature by showing the relation with BPO and MC on work performance, which is vital for SMEs depending on a rich data collected from a novel sample of foreigner workers and managers in Istanbul.