Human resource outsourcing and organizational performance in manufacturing firms

Human resource outsourcing and organizational performance in manufacturing firms Considerable anecdotal evidence suggests that an organization's use of outsourcing will have an influence on its performance. However, few empirical examinations of the outsourcing–performance relationship have been conducted. In this study, we analyze the relationship between the outsourcing of human resource (HR) activities, namely training and payroll, and firm performance. In addition, we hypothesize that the outsourcing–performance relationship is not the same for all firms. As a result, we test for the potential moderating effects of firm size. Our sample consists of 94 manufacturing firms representing 16 two-digit SIC code industries. Results indicate that both training and payroll outsourcing have implications for firm performance. However, findings regarding a moderating effect of firm size were inconclusive. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Research Elsevier

Human resource outsourcing and organizational performance in manufacturing firms

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Publisher
Elsevier
Copyright
Copyright © 2002 Elsevier Science Inc.
ISSN
0148-2963
eISSN
1873-7978
DOI
10.1016/S0148-2963(02)00304-1
Publisher site
See Article on Publisher Site

Abstract

Considerable anecdotal evidence suggests that an organization's use of outsourcing will have an influence on its performance. However, few empirical examinations of the outsourcing–performance relationship have been conducted. In this study, we analyze the relationship between the outsourcing of human resource (HR) activities, namely training and payroll, and firm performance. In addition, we hypothesize that the outsourcing–performance relationship is not the same for all firms. As a result, we test for the potential moderating effects of firm size. Our sample consists of 94 manufacturing firms representing 16 two-digit SIC code industries. Results indicate that both training and payroll outsourcing have implications for firm performance. However, findings regarding a moderating effect of firm size were inconclusive.

Journal

Journal of Business ResearchElsevier

Published: Mar 1, 2004

References

  • The nature of the firm
    Coase, R
  • The effect of human resource management practices on the perceptions of organizational and market performance of the firm
    Harel, G.H; Tzafrir, S.S
  • Virtual HR: strategic human resource management in the 21st century
    Lepak, D.P; Snell, S.A
  • An investigation of the effect and economic utility of corporate-wide training
    Morrow, C.C; Jarrett, M.Q; Rupinski, M.T
  • The impact of grand strategy and planning formality on financial performance
    Pearce, J.A; Robbins, D.K; Robinson, R.B

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