The relationship between outsourcing and organizational performance: Is it myth or reality for the hotel sector?

Abstract

Purpose - The purpose of this study is to investigate empirically the impacts of outsourcing, and to examine the relationship between the outsourcing process and organizational performance in hotels. Design/methodology/approach - Data for the study were obtained from 80 hotels in the city of Antalya in Turkey through questionnaires. A paired-sample t test, and correlation and regression analyses were used to analyse the data. Findings - The analyses provide strong support for the impacts of outsourcing on organizational performance. Cooperation with a vendor has led to significant improvement in organizational effectiveness, productivity, profitability, quality, continuous improvement, quality of work life, and social responsibility levels. Hotel managers think that organizational performance has increased after outsourcing. Research limitations/implications - The most significant limitation of this study is the impact of outsourcing on organizational performance relying on perceived results rather than direct measures for measurable dimensions. In future research, financial metrics must be used to provide more objective evaluations of a hotel's outsourcing impact on the dimensions of profitability and productivity. Practical implications - The results indicate that outsourcing is very important for organizational performance. Also, the effectiveness of the outsourcing process significantly affects organizational performance. If the outsourcing process is planned and implemented effectively, the required results can be achieved in terms of organizational performance. Originality/value - Little has been found in the literature on the impact of outsourcing in hotels. This paper presents new data and empirical insights into the relationship between outsourcing and organizational performance in hotels in Turkey.