Outsourcing decision: do strategy and structure really matter?
Journal of Organizational Change Management
ISSN: 0953-4814
Article publication date: 12 February 2018
Abstract
Purpose
Although there is a growing body of literature on human resource (HR) outsourcing, there are still unresolved issues regarding the level of outsourcing HR activities initiated in firms having different strategies and structures. This is relevant to examine because firms with different orientations (strategy and structure) cannot do HR outsourcing at the same level. The paper aims to discuss these issues.
Design/methodology/approach
A theoretical framework is developed and empirically validated using survey data from 184 manufacturing firms in India. The analysis involved testing a number of hypotheses through statistical techniques using the confirmatory factor analysis and structural equation modeling.
Findings
The results indicate that firms having prospector orientation are more likely to outsource non-core HR activities as compared to firms having analyzer and defender orientation strategies, in that order. However, in comparison to non-core HR activities, core HR activities are less likely to be outsourced by firms with different strategic orientations (prospector, analyser, and defender).
Originality/value
This research study underscores the linkage between HR outsourcing and strategy and structure of a firm by developing a theoretical framework.
Keywords
Citation
Mishra, D., Kumar, S., Sharma, R.R.K. and Dubey, R. (2018), "Outsourcing decision: do strategy and structure really matter?", Journal of Organizational Change Management, Vol. 31 No. 1, pp. 26-46. https://doi.org/10.1108/JOCM-04-2017-0144
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited