Using Transaction Cost Theory to Evaluate Outsourcing Decision-making in the Tourist Hotel Industry

Chen, Han-Shen; Hsieh, Tsuifang

doi:10.2991/iaw-sc.2013.57

Cited by 4 publications

(4 citation statements)

References 35 publications

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“…Therefore, our results contradict those found in the literature, such as Hofer et al (2012) finding that only procedural justice has an influence on trust. This study allows us to also establish trust as a critical factor in the outsourcing relationship, as occurred in other studies (Zineldin and Jonsson 2000;Rauyruen and Miller 2007;Leeman and Reynolds 2012), with direct and indirect effects on its performance and the capacity to promote learning (Shen and Hsieh 2013).…”

Section: Discussionmentioning

confidence: 59%

Dimensions of behavior and proactive improvement in hotel outsourcing relationships: the role of justice

Espino‐Rodríguez

Ramírez-Fierro

2018

Serv Bus

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This study shows the role of justice as a success factor in hotel outsourcing relationships. More specifically, it investigates the associations between two different dimensions of justice (procedural and distributive) and attitudes and behaviors in the relationship with suppliers, in terms of trust, cooperation, and long-term orientation. The work also analyzes to what degree these behavioral elements influence suppliers' proactive improvement, and whether cooperation mediates these relationships. The study provides a unique perspective on this dynamic and the results of the relationships between suppliers and hotels. The results establish that the perception of distributive justice has a positive influence on the long-term orientation of the outsourcing relationship, whereas the perception of procedural justice negatively influences the long-term orientation. The research findings provide evidence about the influence of procedural and distributive justice on trust in the outsourcing relationships, and that trust has a positive impact on cooperation and a long-term orientation. The results show that the long-term orientation and trust do not directly influence proactive improvement, but there is an indirect effect through cooperation.

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Section: Discussionmentioning

confidence: 59%

Dimensions of behavior and proactive improvement in hotel outsourcing relationships: the role of justice

Espino‐Rodríguez

Ramírez-Fierro

2018

Serv Bus

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“…Organ (1997, p. 94) supported this idea when describing individual-level morale as emerging from positive attitudes indicative of or derived from a general state of team morale in the workplace and as a key criterion underlying the antecedents of helping behaviors directed at the organization, such as OCB (Hemdi and Nasurdin, 2007). For the same reason, when staff morale is low, they will likely refrain from helping behaviors directed at the organization, which can put the staff’s support for the outsourcing initiatives at risk (Chen and Hsieh, 2013; Domberger, 1998; Leeman and Reynolds, 2012).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…Prior work on outsourcing in hospitality organizations indicates several strategies that may positively impact outsourcing’s functioning. These strategies include increasing trust and cooperation in the hotel outsourcing environment (Chen and Hsieh, 2013; Lamminmaki, 2011; Yap and Webber, 2015), minimizing clashes between corporate cultures or mini-cultures in departments or the entire hotel organization (Langfield-Smith and Smith, 2001), understanding that internal and external staff have different ways of perceiving outsourcing decisions (Svensson et al , 2015; Yap and Webber, 2015) and maintaining employees’ morale when outsourcing is implemented (Brooks, 2006; Gonzalez et al , 2011), among others. Although prior work in the hospitality industry is clear in stating that strategies based on organizational justice have a strong influence on employees’ positive attitudes and behaviors (Chen McCain et al , 2010; Chan and Jepsen, 2011; Hon and Lu, 2013; Nadiri and Tanova, 2010), the existing research in the hospitality industry has systematically ignored the role that individual justice perceptions can play in influencing outsourcing success.…”

Section: Introductionmentioning

confidence: 99%

Employees’ justice perceptions as a factor influencing successful outsourcing in the hospitality industry

Zoghbi‐Manrique‐de‐Lara

Ting-Ding

2017

IJCHM

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Purpose This study aims to hypothesize that the more in-house staff perceive themselves as beneficiaries of the procedural justice (PJ) followed in the outsourcing, or perceive their outsourced peers as recipients of distributive (DJ) and interactional justice (IJ), the more they will show acceptance and positive evaluations of the outsourcing initiatives. Although prior research in the hospitality industry has extensively studied individual-level reactions to organizational justice, no study has been undertaken to examine how hotel staff support and value outsourcing initiatives based on the way they perceive management’s treatment of them and their peers. Design/methodology/approach Questionnaire data from 215 in-house employees working side-by-side with outsourced employees at 14 hotels in Gran Canaria (Spain) were analyzed by using structural equation modeling. Findings The results found that in-house employees who perceived themselves or their outsourced peers as recipients of organizational justice to a greater extent reported greater support for outsourcing by expressing higher levels of acceptance and better evaluations. The results also supported procedural justice (PJ) as playing a dominant role over distributive (DJ) and interactional justice (IJ). Research limitations/implications The findings suggest that by encouraging justice perceptions among in-house employees, mainly those related to properly discussing the outsourcing procedures with affected employees, hotel managers can promote successful outsourcing. Given that in-house employees reacted not only to the way they were treated by hotel management but also to the way their outsourced peers were treated, the findings also indicate that all (un)fair treatment in outsourcing, regardless of the recipient, should receive explicit attention by hotel managers. Originality/value This paper is one of the first to primarily focus on the individual level of analysis in examining and supporting organizational justice in hotel firms as a factor influencing outsourcing success.

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“…This solution advises hotels to focus on their core competences and capabilities and turn to an outsourcing strategy in those areas that can be improved by specialists, enabling organizations to focus on their core activities and competences (Quinn & Hilmer, 1994;Bustinza, Arias-Aranda & Gutierrez-Gutierrez, 2010;Chen & Hsieh, 2013). The hotel that undertakes an outsourcing process abandons the in-house management of a series of functions or processes that are not related to its core competences to acquire them from an outside supplier.…”

Section: Outsourcing From the Perspective Of Transaction Costs And Opmentioning

confidence: 99%

Make or buy in the hotel marketing department: transaction costs, financial and relational performance

Espino‐Rodríguez

Díaz

2017

TMs

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Make or buy in the hotel marketing department: transaction costs, financial and relational performance AbstractThe outsourcing of hotel marketing is one of the strategic decisions that can help hotels manage the distribution channels more efficiently. This study analyzes the factors determining the outsourcing of hotel sales and marketing activities. It uses the transaction costs framework, complemented by the analysis of performance costs and quality. In this context, the possible impact of outsourcing the marketing department on relational and financial performance is analyzed. The results of the study clearly show a close relationship between these variables and current outsourcing. In addition, the increase in outsourcing is determined by low relational quality. These results lead to the conclusion that it is necessary to create new systems and procedures in sales and marketing activities to offer new competitive solutions through outsourcing. Keywords:Outsourcing, marketing and sales, hotel sector, transaction cost, financial, relational. ResumoLa externalización del marketing hotelero es una de las decisiones estratégicas que pueden ayudar a los hoteles a gestionar los canales de distribución de manera más eficiente. Este estudio analiza los factores que determinan la externalización de las actividades de ventas y marketing del hotel. Para ello se usa el marco de costes de transacción, complementado por el análisis de los costes y la calidad del desempeño. En este contexto, se analiza el posible impacto de la externalización del departamento de marketing en el resultado relacional y financiero. Los resultados del estudio muestran claramente una estrecha relación entre estas variables y externalización actual. Además, el aumento de la subcontratación está determinado por una baja calidad relacional. Estos resultados llevan a la conclusión de que es necesario crear nuevos sistemas y procedimientos en las actividades de ventas y marketing para ofrecer nuevas soluciones competitivas a través de la externalización.Palabras clave: Externalización, marketing y ventas, sector hotelero, costes de transacción, financiero, relacional.

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Using Transaction Cost Theory to Evaluate Outsourcing Decision-making in the Tourist Hotel Industry

Cited by 4 publications

References 35 publications

Dimensions of behavior and proactive improvement in hotel outsourcing relationships: the role of justice

Dimensions of behavior and proactive improvement in hotel outsourcing relationships: the role of justice

Employees’ justice perceptions as a factor influencing successful outsourcing in the hospitality industry

Make or buy in the hotel marketing department: transaction costs, financial and relational performance

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