What is it about?
Outsourcing is an important strategy for hotel management. Outsourcing decisions are associated with both positive and negative consequences. We have taken a step forward in modeling and testing the outcomes of outsourcing from the perspective of operation managers in hotels. We found that perceived benefits and risks play a limited role in shaping future outsourcing decisions, while the current outsourced activities are the main determinant of future outsourcing. This limited role of cognitive evaluations implies that outsourcing decisions can become habitual over time rather than strategic choices.
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Why is it important?
Our findings provide a new interpretation of outsourcing decisions at the operational level. That is, over and above considering outsourcing as a way of reducing costs (efficient choice) or a source of competitive advantage (strategic choice), our study suggested that future outsourcing is a function of current outsourcing, which introduces habit or routine (habitual choice) as a further explanation for future outsourcing decisions.
Perspectives
There is a need for a holistic understanding of the habitual nature of (some) outsourcing decisions.
Dr Sayed Elhoushy
Queen Mary University of London
Read the Original
This page is a summary of: The impact of perceived benefits and risks on current and desired levels of outsourcing: Hotel managers’ perspective, International Journal of Hospitality Management, November 2019, Elsevier,
DOI: 10.1016/j.ijhm.2019.102419.
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