Research on Outsourcing by Hotel Firms: Current State and Future Directions
Abstract
:1. Introduction
2. Background and Current State of Research on Hotel Outsourcing
- Studies that analyse the advantages and risks of outsourcing, the reasons organisations choose to outsource, and how the managerial perception of outsourcing influences the intensity of managers’ use of outsourcing and propensity to outsource;
- Studies that determine the drivers of the outsourcing of a process in an organisation. The most studied approach is the core competency approach, where activities are classified into core competencies and peripheral competencies. Another suitable approach is the degree of activity specificity, where the relationship between asset specificity, operational output, and process outsourcing is analysed. The most commonly used perspectives in these studies are the resource-based view of the firm and transaction cost theory. Within this group of papers are some that analyse other determinants, such as competitive strategy, organisational strategy, size, and organisational culture;
- Studies that analyse the impact of outsourcing decisions on operational performance, competitive priorities, and perceived tourism service quality, although the latter to a lesser extent. In addition, the impact of outsourcing on financial and non-financial performance is analysed;
- Studies that analyse inter-organisational relationships and their success factors. These studies determine the extent to which the use of relational norms rather than contractual norms can improve the success of outsourcing. There is also work on the extent to which organisational justice improves cooperative behaviour and how this behaviour contributes to suppliers being more proactive. However, this type of work is scarce;
- Studies that analyse the outsourcing of specific hotel service activities, ranging from cleaning to certain management aspects, such as revenue management or information systems.
3. A New Conceptual Framework
3.1. Sustainable Outsourcing
3.2. Outsourcing and Its Relationship with Innovation, Industry 4.0 and Resilience
3.2.1. Innovation
3.2.2. Industry 4.0
3.2.3. Resilience
3.2.4. Outsourcing and Service Quality
4. Conclusions
- More sustainable outsourcing, considered from social, economic, and environmental perspectives, will contribute to a higher perceived value of outsourcing and greater satisfaction with outsourced services, as well as a more sustainable performance;
- The outsourcing of the future is expected to be more sustainable by taking into account the triple bottom line (economic, social-cultural, and environmental). This type of outsourcing should have a positive impact on the sustainable performance of the hotel;
- The use of outsourcing providers that have a more sustainable approach will have a positive impact on the success of outsourcing;
- Both tactical and strategic outsourcing benefits will allow this strategy to be developed further. This will allow us to compare the results with those from other studies prior to COVID-19. An increase in outsourcing is also foreseeable, leading to savings in investment and fixed costs;
- The benefits of outsourcing can have a positive impact on sustainable performance;
- Coercive, mimetic, and regulatory pressures may have a positive influence on the development of sustainable outsourcing. However, there is no previous research to support these relationships;
- Innovations related to product, process, organisation, or marketing can condition outsourcing decisions and the way they are carried out;
- Sustainable outsourcing will favour the resilience of the hotel, making it better able to cope with future crises;
- Thanks to outsourcing, the use of Industry 4.0-related technologies can be promoted and implemented in a more accessible and faster way in the hotel sector;
- Sustainable outsourcing influences supply chain integration (supplier integration, internal integration, customer integration);
- Supply chain integration can influence sustainable performance and contribute to or mediate the relationship between outsourcing and sustainable performance;
- Outsourcing per se may have a negative impact on the hotel’s online reputation. However, more sustainable outsourcing may have a positive impact on online reputation or a neutral effect.
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Year | Authors | Topics Covered by the Authors |
---|---|---|
2000 | Hemmington et al. [13] | These authors aim to identify and analyse the key dimensions of restaurant outsourcing in hotels. The complexity of the relationship and its effects on service delivery are analysed. |
2002 | Paraskevas et al. [14] | They study the perceptions of managers of small hotels (between 50 and 150 rooms) of the benefits and risks of outsourcing information systems/information technology. |
2004 | Espino Rodríguez et al. [15] | They analyse hotel managers’ perceptions of the influence of outsourcing on the operations strategy and, in particular, on operations-related objectives, such as cost reduction, quality improvement, flexibility, and service improvement. |
2005 | Espino Rodríguez et al. [11] | From a strategic perspective and drawing on the resource-based view of the firm, the authors study the characteristics that hotel activities must have in order to be outsourced, as well as their influence on the organisational result. They classify hotel activities into core, non-core, and complementary activities. |
2005 | Espino Rodríguez et al. [16] | They analyse hotel managers’ perceptions of the advantages and disadvantages of using each strategy, in order to determine which strategies are related to the willingness to outsource. |
2005 | Espino-Rodríguez et al. [17] | They determine the factors that information systems/information technology (IS/IT) resources must fulfil in order to have strategic value according to the resource-based vision of the firm. The reasons, which are both strategic and tactical, are analysed. |
2005 | Lam et al. [18] | They investigate the perceived outsourcing strategy of Shanghai hotel managers, and they identify the relationship between the determinants of outsourcing adoption and the types of hotel ownership, as well as the compatibility between the supplier and the hotel culture. |
2005 | Lamminmaki [19] | This author applies Williamson’s six-dimensional typology of asset specificity as a theoretical framework for assessing the nature of outsourcing in hotels. Place and capital specificity are the dimensions that best explain outsourcing. |
2006 | Barrows et al. [20] | They investigate outsourcing practices in the food and beverage operations of three independent Canadian hotels by determining the following: the different outsourcing practices and the hotels’ reasons for outsourcing; the perceived benefits of outsourcing; and the factors that determine the outsourcing. |
2007 | Lamminmaki [21] | The author studies outsourcing in a sample of Australian hotels from the perspective of transaction cost economics (TCE), agency theory, and other organisational factors. |
2007 | Burgess [22] | The author investigates whether the use of the outsourcing strategy by finance departments in hotels is likely to become widespread and, if so, the impact it will have on the organisational structure and the role of the hotel’s CFO. |
2007 | Espino-Rodríguez et al. [23] | The authors analyse the information systems and information technology (IS/IT) outsourcing strategy, considering the different activities that make up the IS/IT area. They study the relationship with the different types of IS/IT capabilities and their strategic value. |
2008 | Espino-Rodríguez et al. [24] | They analyse the make-or-buy decisions of hotels in Scotland. Each hotel surveyed was asked for information about 13 hotel operations or processes. A comprehensive model is developed that establishes the relationship between asset specificity and operations and hotel or business performance, moderated by the form of governance (make or buy). In addition, the relationship between asset specificity and outsourcing in the hotel sector is also examined. |
2008 | Shang et al. [25] | It is the first study to apply a three-stage DEA model (data envelopment technique) to analyse the impact of outsourcing on hotel performance. |
2009 | Donada et al. [26] | They analyse the role of positive and negative emotions in decisions about changing suppliers in the hotel industry. The results are used to analyse the impact of outsourcing on hotel performance. |
2009 | Bolat et al. [27] | They empirically investigate the impact of outsourcing and organisational performance in hotels, considering variables, such as organisational effectiveness, productivity, profitability, quality, continuous improvement, quality of working life, and levels of social responsibility. |
2009 | Chatzoglou et al. [28] | They study the influence of outsourcing in Greek hotels on the achievement of the hotel’s operational and financial objectives, improvements in flexibility, access to new management and supply methods, and quality improvement. In addition, the impact of outsourcing on hotel performance is also investigated. |
2010 | Wan et al. [29] | This paper examines the factors affecting outsourcing in Taiwan. Interviews with hotel managers were conducted to analyse the determinants of outsourcing in different services and the current and desired rates of outsourcing in hotels. |
2011 | González Ramírez et al. [4] | This paper uses a content analysis focusing on articles on hotel outsourcing to find out the level of development achieved in this area of research. To this end, the authors start with a review of the indexed articles dedicated to this topic, and then they suggest the most successful thematic areas and research methodologies. |
2011 | Lamminmaki [3] | The author analyses 20 outsourcing/internalisation motives based on transaction cost economics (TCE) theory, agency theory, and the literature on outsourcing. |
2012 | Leeman et al. [30] | They examine how outsourcing projects can be influenced by trust, and how perceptions of trust can influence supplier loyalty and retention. |
2012 | Espino-Rodríguez et al. [5] | This paper examines the use of outsourcing in hotel establishments in Scotland and Taiwan. It focuses on empirically identifying the role of the outsourcing strategy in hotels, and a comparison is made of these two regions. |
2013 | Hiamey et al. [31] | These authors examine how managers understand outsourcing and outsourced activities, the reasons for outsourcing, and the challenges faced by hotels that outsource. |
2014 | Yıldız et al. [32] | It investigates whether the benefits, risks, and outcomes of outsourcing, as well as the departments outsourced, differ between 4- and 5-star coastal hotels and city hotels. It also compares the levels of outsourcing of certain hotel activities in the different groups of hotels. |
2014 | Espino-Rodríguez et al. [33] | The authors analyse hotel outsourcing in Taiwan from the perspective of competitive strategy and asset-specificity. They consider the impact of the influence of cost leadership and differentiation strategies on the degree of outsourcing of an activity and the effect of moderating asset specificity on the relationship between competitive strategy and the degree of outsourcing. These authors develop a specificity-outsourcing matrix. |
2014 | Hodari et al. [34] | They investigate the levels of two stress factors in hotel managers who have outsourced their spa facility versus those who have not outsourced it. |
2015 | DeVita et al. [35] | They study the performance of outsourcing in Tunisian hotels. Transaction cost theory is applied to examine possible hiring problems in outsourcing in the presence of specific assets. |
2015 | Promsivapallop et al. [36] | They examine the effects of variables on outsourcing decisions in the hotel industry in Thailand. They attempt to test and evaluate a theoretical framework that combines transaction cost theory with factors affecting the level of outsourcing. |
2017 | Espino-Rodríguez et al. [37] | They develop a model that studies the relationship between competitive advantage and outsourcing and whether the relationship between competitive advantage and activity performance is influenced by the outsourcing of the activity. They create a matrix they call “outsourcing and competitive advantage”. |
2017 | Espino-Rodríguez et al. [38] | They investigate whether the form of governance of an activity (outsourcing or insourcing) moderates the relationship between asset specificity and performance. They propose different hypotheses based on transaction cost theory and the resource-based view of the firm. A specificity-performance matrix is developed. |
2018 | Zhang et al. [39] | They study outsourcing decisions based on the resource-based view of the firm and transaction cost theory. The paper analyses whether cost reduction and the degree of supplier specialisation impact overall efficiency and long-term commitment. |
2018 | Altin et al. [40] | This study analyses the inclination of hotels to outsource revenue management to an external company. This paper examines whether, in complex environments, such as revenue, firm capabilities moderate the impact of asset specificity on managers’ inclination to outsource. |
2018 | Espino-Rodríguez et al. [6] | The study analyses which strategic benefits and risks determine whether an outsourcing strategy is accepted by managers. |
2018 | Espino-Rodríguez et al. [10] | The study analyses whether the strategic orientation of the firm, as measured by Venkatraman’s six dimensions, influences the level of outsourcing. It also analyses whether outsourcing has an impact on the organisation’s performance from a financial and non-financial point of view. |
2018 | Espino-Rodríguez et al. [41] | They analyse the determinants of outsourcing partnership quality, such as strategic benefits and the degree of outsourcing. The paper also focuses on the influence of the quality of the supplier–hotel partnership based on relationships governed by trust, commitment, business understanding, shared benefits and risks, and conflict resolution. |
2019 | Espino-Rodríguez et al. [42] | This paper analyses the impact of fairness as a success factor in supplier relationships in outsourcing. It analyses the relationships between dimensions of fairness, such as attitudes, and behavioural elements, such as trust, cooperation, and long-term orientation, and how these elements influence proactive supplier improvement. |
2020 | Elhoushy et al. [43] | They investigate the interactions between the perceived benefits and risks of outsourcing and the adoption of outsourcing from the perspective of Egyptian hoteliers. |
2019 | Chu-Lai et al. [44] | In two tourism destinations, this study analyses the impact of outsourcing benefits and competitive strategy on the use of relational norms in outsourcing relationships. In addition, it analyses the impact of relational norms on the success of outsourcing. |
2020 | Hiamey et al. [45] | The objective of this qualitative study is to analyse the selection of suppliers and the management of outsourcing relationships. |
2020 | Gebril Taha et al. [46] | They study the impact of organisational culture on the level of outsourcing and sustainable performance from the perspective of the competitive value framework (CVF). |
2021 | Altín [47] | It analyses the foundations of the outsourcing of the revenue management function from the perspective of the resource-based view of the firm. |
2021 | Espino-Rodríguez et al. [48] | They examine the impact of outsourcing hotel departments on service quality as measured by online customer reviews. Three models were developed, looking at three major online reputation websites, in order to establish the relationship between the outsourcing of hotel activities and service quality. |
Types of Studies Undertaken to Date | Future Studies Required on Outsourcing |
---|---|
Studies that analyse the level of outsourcing, the reasons for outsourcing, and its advantages and risks. | Need for studies defining sustainable outsourcing and the benefits this strategy can have for sustainable development. |
Determinants of outsourcing based on the resource-based view of the firm and transaction cost theory have been studied. | Determining factors based on the institutional perspective, given that stakeholders demand more sustainable outsourcing. |
Outsourcing has been studied as an independent decision within the structural operations area rather than integrated with the rest of the operations decisions. | Studies that integrate outsourcing with other operations decisions are required. |
The studies have covered different activities or processes that are necessary to provide the hotel service. | Outsourcing studies should focus on a broader spectrum of activities related to Industry 4.0 technologies. |
The impact of outsourcing on the organisational performance and competitive priorities of the hotel has been studied. | Studies should consider the impact of outsourcing on the quality of service measured by customers and resilience to new crises. |
Studies have examined trust, the quality of inter-organisational relationships, and relational norms as factors determining outsourcing success. | Studies are needed that assess outsourcing from the perspective of social exchange and consider the sustainable behaviour of suppliers as a key success factor in outsourcing. |
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Espino-Rodríguez, T.F. Research on Outsourcing by Hotel Firms: Current State and Future Directions. Tour. Hosp. 2023, 4, 21-35. https://doi.org/10.3390/tourhosp4010002
Espino-Rodríguez TF. Research on Outsourcing by Hotel Firms: Current State and Future Directions. Tourism and Hospitality. 2023; 4(1):21-35. https://doi.org/10.3390/tourhosp4010002
Chicago/Turabian StyleEspino-Rodríguez, Tomás F. 2023. "Research on Outsourcing by Hotel Firms: Current State and Future Directions" Tourism and Hospitality 4, no. 1: 21-35. https://doi.org/10.3390/tourhosp4010002