EXPLORING THE PERFORMANCE EFFECTS OF HUMAN RESOURCE OUTSOURCING IN THE HOTEL INDUSTRY

Chieh-Heng Ko

Dept. of Hospitality Management, Da Yeh University, Taiwan, R.O.C.

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Abstract

Recent years have seen increased attention being given to firm’s outsourcing. However, research which has empirically documented the link between firm’s outsourcing and its performance is scant. Therefore, the aim of this study attempts to explore the performance effects of the outsourcing of two types of human resource activities, namely training and payroll in the hospitality firms. 314 managers of hospitality firms participated in the study. The analysis of the questionnaires was conducted through regression analyses. Results of this study showed that outsourced training has a positive effect on both innovation and stakeholder performance. In addition, payroll outsourcing was found to positively influence innovativeness. However, the moderating effects of firm size on outsourcing and performance relationships were not clear.

Keywords: Firm’s performance, Human resource outsourcing

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