The choice between internalization and externalization of employment and its impact on firm performance: evidence from five south-eastern European countries

A study investigates whether the choice between internalization and externalization of employment impacts firm performance in the five south-eastern countries of Bulgaria, Cyprus, Greece, Italy and Slovenia, and also whether any changes can be identified in the relationship between the countries examined. Findings reveal that HRM practices which support internalization have more impact on organizational performance in the five countries, and also identify substantial similarities and differences in the relationship between the two factors among the countries examined.