Business scaling through outsourcing and networking: Selected case studies

Abstract

A business scaling on the basis of outsourcing and creation of an entrepreneurial network is discussed in this article.The network allows to expand the resource capabilities of its member enterprises. This aspect seems significant in the case of the inadequacy of researches that consider the period of the emergence of network structures. The proposed nanocorporation model assumes a network of independent, specialized supplier companies with a small coordinating integrator. In nanocorporations, the core company outsources most of its functions and develops its main competency, specializing in planning, corporate management, and marketing. An expanding affiliate business network provides fast business growth, minimization of costs, high mobility. The article examines the process of creating an entrepreneurial network using the example of three Kazakhstani small and medium-sized businesses. On the basis of the analysis, the stages of the decision-making sequence are proposed while creating a network. Case study method is used as the main one in the work.