Appendix I
Department of Business Administration,
Faculty of Humanities, Management and Social Science,
Federal University, Wukari
Taraba State.
10th January, 2017.
Dear Respondent,
Research Questionnaire
I write to solicit your response to our questionnaire. We are carrying out a research on “Effect of Outsourcing Strategies on the Performance of Small and Medium Scale Enterprises (SMEs)”. Towards this end, you are selected as one of our respondents; kindly respond to the questions truthfully and to the best of your knowledge. Be assured that, all information given shall be treated as confidential and only used for the purpose of this research work.
Thanks for your anticipated cooperation.
Yours faithfully,
Anza Calvin Nyianshima
Researcher
07062610512
For:
Agburu I John PhD & IyortsuunAkuraun Shadrach
QUESTIONNAIRE
SECTION A: SMEs characteristics
1. Name of organization/Enterprise (optional): …………………………………………………..
2. Address (optional): ……………………………………………………………………………
3. Date of Incorporation/Registration (optional): ………………………………………………….
4. Nature of Ownership. Please tick as appropriate
Private Limited Company ()
Public Limited Company ()
Partnership ()
Sole Proprietor ()
Family Owned Business ()
Others (please specify) ……………………………………………….
5. Nature/Kind of organization (please tick as appropriate)
Manufacturing ()
Educational ()
Computer/ Information Technology & Telecommunication ()
Restaurants and Hotels ()
Wholesale and retail shops ()
Others (please specify)…………………………………………………………
6. Major Product Lines where applicable:
(1): ……………………………………………………………………………………..
(2): ……………………………………………………………………………………..
(3): …………………………………………………………………………………….
(4): ……………………………………………………………………………………..
7. For how long has your company been in operation (please tick as appropriate)
Less than five (5) years ()
Between 5 and 10 years ()
Between 11 and 15 years ()
Between 16 and 20 years ()
Over 20 years ()
8. How many people are employed by your company? ......
9. What is the worth (approximately) of your business (enterprise)? (Please tick as appropriate)
Less than 10 million naira ()
Between 10 million and 100 million naira ()
Between 101 million and 300 million naira ()
Over 300 million naira ()
10. What is your annual turnover? (Please tick as appropriate)
10 million naira and below ()
Over 10 million but not more than 20 million naira ()
Above 20 million naira ()
SECTION B: OUTSOURCING OF BACK OFFICE ACTIVITIES
Tick appropriately the option that best describes your extent of agreement to the statement that your organization has outsourced (sub-contracted) the following back office activities within the recent past five years (2012-2016)
Note: SA= Strongly agree; A= Agree; N= Neutral; D= Disagree; SD= Strongly Disagree
S/N / Statement / SD / DA / N / A / SA1 / Your organization has outsourced security services between 2012 and 2016
2 / Your organization has outsourced Cleaning services between 2012 and 2016
3 / Your organization has outsourced Bookkeeping services between 2012 and 2016
4 / Your organization has outsourced Payroll services between 2012 and 2016
5 / Your organization has outsourced Billing services between 2012 and 2016
6 / Your organization has outsourced order processing between 2012 and 2016
7 / Your organization has outsourced payment processing between 2012 and 2016
8 / Your organization has outsourced other administrative activities between 2012 and 2016. Please specify……………….
SECTION C: OUTSOURCING OF PRIMARY ACTIVITIES
Tick appropriately the option that best describes your extent of agreement to the statement that your organization has outsourced (sub-contracted) the following primary operations/activities within the recent past five years (2012-2016)
Note: SA= Strongly agree; A= Agree; N= Neutral; D= Disagree; SD= Strongly Disagree
S/N / Statement / SD / DA / N / A / SA1 / Your organization has outsourced her manufacturing services between 2012 and 2016
2 / Your organization has outsourced her purchasing services between 2012 and 2016
3 / Your organization has outsourced her warehousing services between 2012 and 2016
4 / Your organization has outsourced her Sales services between 2012 and 2016
5 / Your organization has outsourced other primary activities between 2012 and 2016 please specify……….………
SECTION D: OUTSOURCING OF ACCOUNTING ACTIVITIES
Tick appropriately the option that best describes your extent of agreement to the statement that your organization has outsourced (sub-contracted) the following Accounting activities within the recent past five years (2012-2016)
Note: SA= Strongly agree; A= Agree; N= Neutral; D= Disagree; SD= Strongly Disagree
S/N / Statement / SD / D / N / A / SA1 / Your organization has outsourced her financial reporting services between 2012 and 2016
2 / Your organization has outsourced her tax processing services between 2012 and 2016
SECTION E: OUTSOURCING OF SUPPORTING ACTIVITIES
Tick appropriately the option that best describes your extent of agreement to the statement that your organization has outsourced (sub-contracted) the following support activities within the recent past five years (2012-2016)
Note: SD= Strongly Disagree; D= Disagree; N= Neutral; A= Agree; SA= Strongly Agree
S/N / Statement / SD / D / N / A / SA1 / Your organization has outsourced her legal services between 2012 and 2016
2 / Your organization has outsourced her shipping/ transportation services between 2012 and 2016
3 / Your organization has outsourced her advertising/public relations services between 2012 and 2016
4 / Your organization has outsourced her IT services/system services between 2012 and 2016
5 /
Your organization has outsourced her training services between 2012 and 2016
S SECTION F: OUTSOURCING STRATEGIES AND ORGANISATIONAL PERFORMANCE (PROFITABILITY)
Tick appropriately the option that best describes your extent of agreement to the statement that your organization’s outsourcing over the years has led to profitability through the following effects within the recent past five years (2012-2016)
S/N / Statement / SD / D / N / A / SA
1 / Your outsourcing practice over the years has lead to cost savings
2 / Your outsourcing practice over the years has lead to focus on core business, thus increasing efficiency
3 / Your outsourcing practice over the years has lead to reduction in money spent on fixed assets (cost restructuring)
4 / Your outsourcing practice over the years has lead to reduction in tax paid (tax benefit)
5 / Your outsourcing practice over the years has lead to increase turnover (Sales)
Thanks so very kindly!
Appendix II
RELIABILITY TEST USING PILOT SURVEY
Scale: Outsourcing of Back Office Activities
Case Processing SummaryN / %
Cases / Valid / 23 / 100.0
Excludeda / 0 / .0
Total / 23 / 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha / N of Items
.761 / 8
Scale: Outsourcing of Primary Activities
Case Processing SummaryN / %
Cases / Valid / 23 / 100.0
Excludeda / 0 / .0
Total / 23 / 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha / N of Items
.721 / 5
Scale: Outsourcing of Accounting Activities
Case Processing SummaryN / %
Cases / Valid / 23 / 100.0
Excludeda / 0 / .0
Total / 23 / 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha / N of Items
.701 / 2
Scale: Outsourcing of Supporting Activities
Case Processing SummaryN / %
Cases / Valid / 23 / 100.0
Excludeda / 0 / .0
Total / 23 / 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha / N of Items
.743 / 5
Scale: Organizational performance
Case Processing SummaryN / %
Cases / Valid / 23 / 100.0
Excludeda / 0 / .0
Total / 23 / 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha / N of Items
.843 / 5
Scale: Overall Cronbach Alpha for Outsourcing Scale
Case Processing SummaryN / %
Cases / Valid / 23 / 100.0
Excludeda / 0 / .0
Total / 23 / 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha / N of Items
.929 / 25
Appendix III
PRIMARY DATA (RESPONDENTS’ VIEWS)
(a)Summary of respondent’s views about the outsourcing (subcontracting) of one or more of back office activities
Area of operation/ Nature of business / S D / D / N / A / SA / TotalManufacturing / 8 / 5 / 3 / 3 / 1 / 20
Educational / 10 / 8 / 4 / 4 / 2 / 28
Computer/ Information Technology &Telecommunication / 1 / 1 / 1 / 1 / 1 / 5
Restaurants and Hotels / 3 / 5 / 2 / 12 / 19 / 41
Wholesale and retail shops / 12 / 48 / 27 / 18 / 19 / 124
Total Average response / 34 / 67 / 37 / 38 / 42 / 218
Average percentage / 16% / 31% / 17% / 17% / 19% / 100%
Source: survey data, 2016.
(b)Summary of respondent’s views about the outsourcing (subcontracting) of one or more of primary activities
Area of operation/ Nature of business / S D / D / N / A / SA / TotalManufacturing / 2 / 3 / 5 / 6 / 4 / 20
Educational / 4 / 5 / 5 / 8 / 6 / 28
Computer/ Information Technology &Telecommunication / 0.2 / 0.5 / 2 / 1.5 / 0.8 / 5
Restaurants and Hotels / 14.5 / 14 / 5.8 / 5 / 1.7 / 41
Wholesale and retail shops / 33 / 62.5 / 18 / 7 / 3 / 124
Average response / 53.7 / 85 / 35.8 / 27.5 / 15.5 / 218
Average percentage / 25% / 39% / 16% / 12% / 7% / 100%
Source: survey result, 2016
(c)Summary of respondent’s views about the outsourcing (subcontracting) of one or more of accounting activities
Area of operation/ Nature of business / S D / D / N / A / SA / TotalManufacturing / 2 / 3 / 3 / 5.5 / 6.5 / 20
Educational / 8 / 8.5 / 5.5 / 5 / 1 / 28
Computer/ Information Technology &Telecommunication / 1 / 1 / 1 / 1 / 1 / 5
Restaurants and Hotels / 2 / 3.5 / 6.5 / 10.5 / 18.5 / 41
Wholesale and retail shops / 8.5 / 7.5 / 22.5 / 17 / 67.5 / 124
Total Average response / 21.5 / 23.5 / 38.5 / 39 / 94.5 / 218
Average percentage / 10% / 11% / 18% / 18% / 43% / 100%
Source: survey data, 2016.
(d)Summary of respondent’s views about the outsourcing (subcontracting) of one or more of supporting activities
Area of operation/ Nature of business / S D / D / N / A / SA / TotalManufacturing / 2.8 / 3.7 / 2.7 / 4.5 / 6.3 / 20
Educational / 1.7 / 4 / 4.7 / 9 / 8.7 / 28
Computer/ Information Technology &Telecommunication / 1.1 / 0.5 / 1.3 / 1.5 / 0.5 / 5
Restaurants and Hotels / 2.3 / 4.5 / 3 / 11.7 / 19.5 / 41
Wholesale and retail shops / 2.7 / 3.8 / 7.2 / 67.7 / 39.3 / 124
Total Average response / 10.6 / 16.5 / 18.9 / 94.4 / 74.3 / 218
Average percentage / 5% / 8% / 7% / 43% / 34% / 100%
Source: survey data, 2016.
(e)Summary of respondent’s views about their profitability as it relates to the outsourcing (subcontracting) of one or more of outsourcing activities
Area of operation/ Nature of business / S D / D / N / A / SA / TotalManufacturing / 2 / 3 / 2.8 / 7 / 5.6 / 20
Educational / 1.6 / 3 / 3.4 / 10 / 10 / 28
Computer/ Information Technology &Telecommunication / - / 1 / 1.2 / 1.8 / 1 / 5
Restaurants and Hotels / 2 / 3.8 / 3.2 / 10.8 / 21.4 / 41
Wholesale and retail shops / 5.6 / 7.2 / 16 / 72.8 / 22.8 / 124
Total Average response / 11.2 / 18 / 26.6 / 102.4 / 60.6 / 218
Average percentage / 5% / 8% / 12% / 47% / 28% / 100%
Source: survey data, 2016.
Appendix IV
SPSS Result for Questionnaire Responses
Descriptive StatisticsMean / Std. Deviation / N
Profitability / 3.74 / .681 / 218
Outsourcing of Back Office Activities / 3.66 / .927 / 218
Outsourcing of Primary Activities / 3.89 / 1.074 / 218
Outsourcing of Accounting Activities / 4.07 / .727 / 218
Outsourcing of Supporting Activities / 2.45 / .939 / 218
Correlations
Profitability / Outsourcing of Back Office Activities / Outsourcing of Primary Activities / Outsourcing of Supporting Activities / Outsourcing of Accounting Activities
Pearson Correlation / Profitability / 1.000 / .718 / .749 / .660 / .599
Outsourcing of Back Office Activities / .718 / 1.000 / .843 / .718 / .633
Outsourcing of Primary Activities / .749 / .843 / 1.000 / .781 / .789
Outsourcing of Accounting Activities / .599 / .633 / .789 / .683 / 1.000
Outsourcing of Supporting Activities / .660 / .718 / .781 / 1.000 / .683
Sig. (1-tailed) / Profitability / . / .000 / .000 / .000 / .000
Outsourcing of Back Office Activities / .000 / . / .000 / .000 / .000
Outsourcing of Primary Activities / .000 / .000 / . / .000 / .000
Outsourcing of Accounting Activities / .000 / .000 / .000 / .000 / .
Outsourcing of Supporting Activities / .000 / .000 / .000 / . / .000
N / Profitability / 218 / 218 / 218 / 218 / 218
Outsourcing of Back Office Activities / 218 / 218 / 218 / 218 / 218
Outsourcing of Primary Activities / 218 / 218 / 218 / 218 / 218
Outsourcing of Accounting Activities / 218 / 218 / 218 / 218 / 218
Outsourcing of Supporting Activities / 218 / 218 / 218 / 218 / 218
Variables Entered/Removeda
Model / Variables Entered / Variables Removed / Method
1 / Outsourcing of Accounting Activities, Outsourcing of Back Office Activities, Outsourcing of Supporting Activities, Outsourcing of Primary Activitiesb / . / Enter
a. Dependent Variable: Profitability
b. All requested variables entered.
Model Summaryb
Model / R / R Square / Adjusted R Square / Std. Error of the Estimate
1 / .772a / .596 / .590 / .436
a. Predictors: (Constant), Outsourcing of Accounting Activities, Outsourcing of Back Office Activities, Outsourcing of Supporting Activities, Outsourcing of Primary Activities
b. Dependent Variable: Profitability
ANOVAa
Model / Sum of Squares / Df / Mean Square / F / Sig.
1 / Regression / 77.721 / 4 / 19.430 / 102.032 / .000b
Residual / 52.750 / 214 / .190
Total / 130.471 / 217
a. Dependent Variable: Profitability
b. Predictors: (Constant), Outsourcing of Accounting Activities, Outsourcing of Back Office Activities, Outsourcing of Supporting Activities, Outsourcing of Primary Activities
Coefficientsa
Model / Unstandardized Coefficients / Standardized Coefficients / t / Sig.
B / Std. Error / Beta
1 / (Constant) / 1.715 / .167 / 10.286 / .000
Outsourcing of Back Office Activities / .199 / .054 / .271 / 3.724 / .000
Outsourcing of Primary Activities / .247 / .060 / .389 / 4.133 / .000
Outsourcing of Accounting Activities / .018 / .060 / .019 / .295 / .768
Outsourcing of Supporting Activities / .108 / .046 / .149 / 2.354 / .019
a. Dependent Variable: Profitability
Residuals Statisticsa
Minimum / Maximum / Mean / Std. Deviation / N
Predicted Value / 2.29 / 4.57 / 3.74 / .526 / 218
Residual / -1.066 / .706 / .000 / .433 / 218
Std. Predicted Value / -2.761 / 1.587 / .000 / 1.000 / 218
Std. Residual / -2.442 / 1.618 / .000 / .993 / 218
a. Dependent Variable: Profitability
The rule of thumb states that, the standardized predicted value should not exceed 3.29 when p < .001. From the table above, the result indicates that none of the standardized predicted values exceed 3.29; hence we can conclude that the dependent variable is reasonably normally distributed.
StatisticsSMEs Sector of Operations / SMEs Ownership Structure / SMEs Years of Operation / SMEs Number of Employees / SMEs Shareholders' Fund / SMEs Annual Turnover
N / Valid / 218 / 218 / 218 / 218 / 218 / 218
Missing / 0 / 0 / 0 / 0 / 0 / 0
Mean / 4.03 / 3.86 / 2.08 / 1.06 / 1.60 / 1.48
Median / 4.00 / 4.00 / 2.00 / 1.00 / 2.00 / 1.00
Skewness / 13.214 / -1.694 / 1.752 / 3.588 / .284 / .071
Std. Error of Skewness / .145 / .145 / .145 / .145 / .145 / .145
Kurtosis / 205.095 / 6.671 / 3.696 / 10.949 / -.779 / -2.009
Std. Error of Kurtosis / .289 / .289 / .289 / .289 / .289 / .289
Frequency Table
SMEs Sector of OperationsFrequency / Percent / Valid Percent / Cumulative Percent
Valid / Manufacturing / 20 / 9.2 / 9.2 / 9.2
Educational / 28 / 12.8 / 12.8 / 22.0
Computer/ICT / 5 / 2.3 / 2.3 / 24.3
Restaurants and hotels / 41 / 18.8 / 18.8 / 43.1
Wholesale and retail / 124 / 56.9 / 56.9 / 100.0
Total / 218 / 100.0 / 100.0
SMEs Ownership Structure
Frequency / Percent / Valid Percent / Cumulative Percent
Valid / Private limited company / 13 / 6.0 / 6.0 / 6.0
Partnership / 47 / 21.6 / 21.6 / 27.6
Sole proprietorship / 136 / 62.4 / 62.4 / 90.0
Family owned / 22 / 10.0 / 10.0 / 100.0
Total / 218 / 100.0 / 100.0
SMEs Years of Operation
Frequency / Percent / Valid Percent / Cumulative Percent
Valid / Less than 5 years / 15 / 6.9 / 6.9 / 6.9
Between 5 and 10 years / 162 / 74.3 / 74.3 / 81.2
Between 11 and 15 years / 20 / 9.8 / 9.8 / 91.0
Between 16 and 20 years / 5 / 2.3 / 2.3 / 93.3
Above 20 years / 16 / 7.4 / 7.4 / 100.0
Total / 218 / 100.0 / 100.0
SMEs Number of Employees
Frequency / Percent / Valid Percent / Cumulative Percent
Valid / Less than 50 employees / 197 / 90.4 / 90.4 / 90.4
Between 50 and 100 employees / 21 / 9.6 / 9.6 / 100.0
Total / 218 / 100.0 / 100.0
SMEs Shareholders' Fund
Frequency / Percent / Valid Percent / Cumulative Percent
Between 10 and 100 million naira / 196 / 89.9 / 89.9 / 89.9
Between 101 and 300 million naira / 22 / 10.1 / 10.1 / 100.0
Total / 218 / 100.0 / 100.0
SMEs Annual Turnover
Frequency / Percent / Valid Percent / Cumulative Percent
Valid / 10 million naira and below / 146 / 67.0 / 67.0 / 67.0
Between 10 and 20 million naira / 72 / 33.0 / 33.0 / 100.0
Total / 218 / 100.0 / 100.0
APPENDIX V
SECONDARY DATA
Organizations whose financial records were accessed are presented in a tabular form below:
S/N / Name of SMEs / Area of operation1 / Top choice bakery / Manufacturing
2 / Oxnet table water / Manufacturing
3 / Smile View hotel Makurdi / Restaurants/Hotels
4 / Edomat kitchen, Makurdi / Restaurants/Hotels
5 / Cornerstone academy, Makurdi / Educational services
6 / Jewel academy / Educational services
7 / Super graphics Makurdi / Computer/ Information Technology &Telecommunication
8 / Oracle printing press, Makurdi / Computer/ Information Technology &Telecommunication
9 / OG winners phone and phone accessories / Wholesale and retail shops
10 / Dobbiac supermarket, Makurdi / Wholesale and retail shops
Appendix VI
SPSS Result for Secondary dataDescriptive Statistics
Mean / Std. Deviation / N
Estimated Annual Profit After Tax / 24985944.00 / 12046766.355 / 50
Estimated Cost of Outsourcing Back Office Activities / 201040.00 / 156668.467 / 50
Estimated Cost of Outsourcing Primary Activities / 249345.00 / 156201.408 / 50
Estimated Cost of Outsourcing Support Activities / 172932.00 / 117363.636 / 50
Estimated Cost of Outsourcing Accounting Activities / 300068.00 / 129110.033 / 50
Correlations
Estimated Annual Profit After Tax / Estimated Cost of Outsourcing Back Office Activities / Estimated Cost of Outsourcing Primary Activities / Estimated Cost of Outsourcing Support Activities / Estimated Cost of Outsourcing Accounting Activities
Pearson Correlation / Estimated Annual Profit After Tax / 1.000 / .701 / -.270 / .774 / .349
Estimated Cost of Outsourcing Back Office Activities / .701 / 1.000 / .213 / .792 / .360
Estimated Cost of Outsourcing Primary Activities / -.270 / .213 / 1.000 / .116 / .463
Estimated Cost of Outsourcing Support Activities / .774 / .792 / .116 / 1.000 / .613
Estimated Cost of Outsourcing Accounting Activities / .349 / .360 / .463 / .613 / 1.000
Sig. (1-tailed) / Estimated Annual Profit After Tax / . / .000 / .029 / .000 / .007
Estimated Cost of Outsourcing Back Office Activities / .000 / . / .069 / .000 / .005
Estimated Cost of Outsourcing Primary Activities / .029 / .069 / . / .212 / .000
Estimated Cost of Outsourcing Support Activities / .000 / .000 / .212 / . / .000
Estimated Cost of Outsourcing Accounting Activities / .007 / .005 / .000 / .000 / .
N / Estimated Annual Profit After Tax / 50 / 50 / 50 / 50 / 50
Estimated Cost of Outsourcing Back Office Activities / 50 / 50 / 50 / 50 / 50
Estimated Cost of Outsourcing Primary Activities / 50 / 50 / 50 / 50 / 50
Estimated Cost of Outsourcing Support Activities / 50 / 50 / 50 / 50 / 50
Estimated Cost of Outsourcing Accounting Activities / 50 / 50 / 50 / 50 / 50
Variables Entered/Removeda
Model / Variables Entered / Variables Removed / Method
1 / Estimated Cost of Outsourcing Accounting Activities, Estimated Cost of Outsourcing Back Office Activities, Estimated Cost of Outsourcing Primary Activities, Estimated Cost of Outsourcing Support Activitiesb / . / Enter
a. Dependent Variable: Estimated Annual Profit After Tax
b. All requested variables entered.
Model Summaryb
Model / R / R Square / Adjusted R Square / Std. Error of the Estimate
1 / .892a / .795 / .777 / 5684857.292
a. Predictors: (Constant), Estimated Cost of Outsourcing Accounting Activities, Estimated Cost of Outsourcing Back Office Activities, Estimated Cost of Outsourcing Primary Activities, Estimated Cost of Outsourcing Support Activities
b. Dependent Variable: Estimated Annual Profit After Tax
ANOVAa
Model / Sum of Squares / Df / Mean Square / F / Sig.
1 / Regression / 5656812291181813.000 / 4 / 1414203072795453.200 / 43.760 / .000b
Residual / 1454292109301385.800 / 45 / 32317602428919.684
Total / 7111104400483199.000 / 49
a. Dependent Variable: Estimated Annual Profit After Tax
b. Predictors: (Constant), Estimated Cost of Outsourcing Accounting Activities, Estimated Cost of Outsourcing Back Office Activities, Estimated Cost of Outsourcing Primary Activities, Estimated Cost of Outsourcing Support Activities
Coefficientsa
Model / Unstandardized Coefficients / Standardized Coefficients / T / Sig. / Correlations / Collinearity Statistics
B / Std. Error / Beta / Zero-order / Partial / Part / Tolerance / VIF
1 / (Constant) / 15666016.761 / 2148120.137 / 7.293 / .000
Estimated Cost of Outsourcing Back Office Activities / 36.352 / 9.579 / .473 / 3.795 / .000 / .701 / .492 / .256 / .293 / 3.415
Estimated Cost of Outsourcing Primary Activities / -39.093 / 6.577 / -.507 / -5.944 / .000 / -.270 / -.663 / -.401 / .625 / 1.600
Estimated Cost of Outsourcing Support Activities / 33.602 / 15.533 / .327 / 2.163 / .036 / .774 / .307 / .146 / .198 / 5.039
Estimated Cost of Outsourcing Accounting Activities / 19.825 / 10.155 / .212 / 1.952 / .057 / .349 / .279 / .132 / .384 / 2.607
a. Dependent Variable: Estimated Annual Profit After Tax
CollinearityDiagnosticsa
Model / Dimension / Eigenvalue / Condition Index / Variance Proportions
(Constant) / Estimated Cost of Outsourcing Back Office Activities / Estimated Cost of Outsourcing Primary Activities / Estimated Cost of Outsourcing Support Activities / Estimated Cost of Outsourcing Accounting Activities
1 / 1 / 4.358 / 1.000 / .01 / .00 / .01 / .00 / .00
2 / .361 / 3.476 / .03 / .10 / .17 / .04 / .01
3 / .156 / 5.293 / .26 / .13 / .45 / .01 / .04
4 / .097 / 6.695 / .58 / .18 / .01 / .10 / .17
5 / .028 / 12.441 / .12 / .60 / .36 / .85 / .79
a. Dependent Variable: Estimated Annual Profit After Tax
Residuals Statisticsa
Minimum / Maximum / Mean / Std. Deviation / N
Predicted Value / 7112696.50 / 49300228.00 / 24985944.00 / 10744540.418 / 50
Residual / -18298472.000 / 12862157.000 / .000 / 5447883.149 / 50
Std. Predicted Value / -1.663 / 2.263 / .000 / 1.000 / 50
Std. Residual / -3.219 / 2.263 / .000 / .958 / 50
Charts
The rule of thumb states that, the standardized predicted value should not exceed 3.29 when p < .001. From the table above, the result indicates that none of the standardized predicted values exceed 3.29; hence we can conclude that the dependent variable is reasonably normally distributed.