To read this content please select one of the options below:

Conceptualising HR outsourcing effectiveness and scale development of HROSERVPERF using PLS-SEM

Siew Chen Sim (University of Nottingham Malaysia Campus, Semenyih, Malaysia)
Maniam Kaliannan (NUBS, University of Nottingham Malaysia Campus, Semenyih, Malaysia)
Mohan Avvari (NUBS, University of Nottingham Malaysia Campus, Semenyih, Malaysia)

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 1 March 2021

Issue publication date: 2 November 2021

470

Abstract

Purpose

This study aims to provide a conceptualisation of HR outsourcing (HRO) effectiveness from a service quality perspective and subsequently develop a scale – HROSERVPERF to measure HRO service performance underpinned S-O-R theory.

Design/methodology/approach

Grounded on theoretical conceptualisation, literature and information collected through semi-structured interviews, HRO service performance items pool were generated. 257 responses from manufacturing firms in Malaysia that have outsourced their HR were collected. PLS-SEM is used for scale confirmation and validation.

Findings

The conceptualisation of HRO effectiveness and HRO service performance suggests a need for scale development that encompasses service quality-satisfaction-loyalty framework supported by S-O-R theory. Operational improvement, resource alignment and service delivery emerged as the service performance dimensions of HROSERVPERF.

Research limitations/implications

This study was limited to manufacturing firms in Malaysia, hence little generalisation could be drawn beyond this context. However, this serves as future research opportunities.

Practical implications

HR managers and service providers can employ HROSERVPERF to measure and improve HRO service performance more effectively. Service providers can re-strategise and target their scarce resources to better retain their clients.

Originality/value

This is the first paper that provides HRO effectiveness conceptualisation from a service quality perspective followed by a scale development with formative measures using PLS-SEM underpinned S-O-R theory.

Keywords

Citation

Sim, S.C., Kaliannan, M. and Avvari, M. (2021), "Conceptualising HR outsourcing effectiveness and scale development of HROSERVPERF using PLS-SEM", Benchmarking: An International Journal, Vol. 28 No. 9, pp. 2682-2710. https://doi.org/10.1108/BIJ-05-2020-0248

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

Related articles