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Outsourcing vs insourcing in the human resource supply chain: a comparison of five generic models

Published on Nov 1, 2006in Personnel Review 1.36
· DOI :10.1108/00483480610702728
Tom Kosnik1
Estimated H-index: 1
Diana J. Wong-MingJi3
Estimated H-index: 3
(EMU: Eastern Michigan University),
Kristine F. Hoover3
Estimated H-index: 3
(BGSU: Bowling Green State University)
Purpose – The purpose of this paper is to develop a typology of human resource supply chain (HRSC) models that enable comparison of different models for making more informed strategic HR outsourcing decisions.Design/methodology/approach – In the paper interviews and company documents were used to construct multiple comparative case studies.Findings – The paper finds that five generic HRSC models were identified in two broad categories – two in‐sourcing models (local contracting and HR centralizing) and three outsourcing models (purchasing HR, non‐staffing HR, and staffing HR). Additional findings relate to the redistribution of power and competencies for managing HR within and between organizations.Research limitations/implications – The paper shows that future research should account for different HRSC models to address various dependent variables, especially distribution of power and HR competencies in managing HR supply chains and contribution to firm performance. Future studies on strategic alliances ...
  • References (13)
  • Citations (34)
Published on Apr 9, 2007in Sloan Management Review
Paul S. Adler42
Estimated H-index: 42
(University of Manchester)
Outsourcing has become increasingly attractive for many organizations. Much attention has focused recently on the outsourcing of staffing. A much less noticed, though growing, business has been that for human-resources business-process outsourcing, or HR-BPO. Some observers see outsourcing as a key trend shaping the future of HR. outsourcing any business activity creates potential risks as well as benefits. This article synthesizes the strongest of the available research and identifies the six k...
Published on Jul 1, 2002
Steve Bates1
Estimated H-index: 1
Published on Apr 1, 2002in Personnel Review 1.36
Naresh Khatri21
Estimated H-index: 21
(MU: University of Missouri),
Pawan Budhwar46
Estimated H-index: 46
(Cardiff University)
Examines five strategic human resource management (HRM) issues using a qualitative methodology. Two of these are related to the central organisational-level constructs of structure and culture. The other three pertain to HR strategy, HR competencies, and HR outsourcing. The study employed the multiple-case design method proposed by Yin, with a view to extending theory in strategic HRM research. Semi-structured interviews were conducted with 35 managers (CEOs, line managers, and HR managers) of n...
Published on Mar 1, 1999in Personnel Psychology 6.93
Brian S. Klaas18
Estimated H-index: 18
(USC: University of South Carolina),
John A. McClendon9
Estimated H-index: 9
(TU: Temple University),
Thomas W. Gainey3
Estimated H-index: 3
(USC: University of South Carolina)
Although HR activities have traditionally been performed in-house, organizations are increasingly relying on outside contractors to perform these activities. Using a Transaction Cost Economics perspective, this study examined whether organizational-level factors moderated the relationship between the degree of reliance on HR outsourcing and the perceived benefits produced by outsourcing. Moderated regression was performed using data provided by over 300 HR executives on outsourcing levels, organ...
Published on Sep 1, 1998in Human Resource Management Review 3.63
Gerald R. Ferris75
Estimated H-index: 75
(UIUC: University of Illinois at Urbana–Champaign),
Michelle M. Arthur4
Estimated H-index: 4
(UIUC: University of Illinois at Urbana–Champaign)
+ 3 AuthorsDwight D. Frink21
Estimated H-index: 21
(University of Mississippi)
Abstract Increasing evidence has been found in support of a relationship between human resources management (HRM) systems and organization effectiveness, which has emerged as an important body of work in the past decade. Noticeably absent has been sound theoretical development that explains how such HRM system effects operate. In an effort to address such theoretical limitations in the area, the present article proposes a social context conceptualization that incorporates culture, climate and po...
Published on Jun 1, 1995in Academy of Management Journal 7.19
Mark A. Huselid22
Estimated H-index: 22
(RU: Rutgers University)
This study comprehensively evaluated the links between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediate employee outcomes (turnover and productivity) and short- and long-term measures of corporate financial performance. Support for predictions that the impact of High Performance Work Practices on firm performa...
Olive Lundy1
Estimated H-index: 1
(Ulster University)
Few business organizations today could claim to be unaffected by globalization and pressures for competitiveness. The trend has undoubtedly caused the management of human resources to take on new strategic significance. There is however some suggestion that initiatives taken to manage human resources strategically are originating with chief executives and line management. Personnel management, it is argued, has been and continues to be in ‘decline’. Through reviews of literature this paper consi...
Cited By34
Published on Jan 1, 2018
Olli-Pekka Hilmola17
Estimated H-index: 17
(Lappeenranta University of Technology)
In the following, supply chain case studies that use an abnormal number of case observations in their research are introduced and analysed. New approaches will be identified to increase the number of cases, which can be put towards building future research projects. Case-rich studies stress the importance of data-gathering approaches and data storage methods. From a branch development perspective, it can be seen that food industry studies seem to frequently use case-rich studies.
Published on Feb 20, 2017
Rajasekhar David , Pratyush Banerjee5
Estimated H-index: 5
Abhilash Ponnam1
Estimated H-index: 1
Purpose The purpose of this paper is to explore various risks that are associated with recruitment process outsourcing (RPO) strategy in the Indian information technology (IT)/IT-enabled service (ITes) industries. Design/methodology/approach Purposeful intensity sampling was used to select respondents from IT/ITes organizations. Twenty-eight respondents were interviewed through face-to-face semi-structured interviews and telephonic interviews. Each interview lasted for approximately 65 min. All ...
Hasan Gilani3
Estimated H-index: 3
Shabana Jamshed1
Estimated H-index: 1
(Glyndŵr University)
Purpose This paper aims to focus on “Recruitment Process Outsourcing” (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of employees. This research explores the linkages and interconnection between the concepts of RPO and its contribution towards the employer branding process. The review of the literature on RPO and employer branding identifies an emergence of conceptual framework based around outsourcing effectiveness and its impa...
Published on Jan 1, 2016
Rui-mei Zhao (QUST: Qingdao University of Science and Technology)
Human resource outsourcing of the enterprise is getting more and more popular. When the supply chain technique has been applied into human resource outsourcing, the human resource supply chain occurs. This paper develops three models of human resource supply chain of T Co. Ltd, respectively for the top managers, the production personnel and general clerical staff, and the support staff. Every model has its own characteristics and drives. The sustainable success of such supply chains depends on m...
Muhammad Usman , Summaira Malik1
Estimated H-index: 1
(CUI: COMSATS Institute of Information Technology),
Asma Imran
This paper critically investigates how outsourcing human resource (HR) services within National Health Services (NHS) have affected staff turnover and wider local economy of UK. Interviews were structured with the view to investigate this issue. The research shows that despite the pressure of outsourcing by Department of Health (DoH), NHS acute trusts are reluctant to outsource their HR functions. Those who outsourced have done this with some strategic planning. Reverse trend of outsourcing has ...
Published on Dec 1, 2014in European Journal of Operational Research 3.81
Gang Li14
Estimated H-index: 14
(Ministry of Education),
Feng Feng Huang2
Estimated H-index: 2
(Ministry of Education)
+ 2 AuthorsPing Ji26
Estimated H-index: 26
(PolyU: Hong Kong Polytechnic University)
We consider a supply chain comprising a manufacturer and a retailer. The manufacturer supplies a product to the retailer, while the retailer sells the product bundled with after-sales service to consumers in a fully competitive market. The sales volume is affected by the retailer’s service-level commitment. The retailer can build service capacity in-house at a deterministic price before service demand is realized, or buy the service from an outsourcing market at an uncertain price after service ...
Published on Nov 3, 2014
Michela Iannotta2
Estimated H-index: 2
Mauro Gatti7
Estimated H-index: 7
Obiettivi . Alla luce del rinnovato interesse per la manifattura, l’intento del presente contributo e offrire una rilettura in chiave organizzativa, e non solo, dell’evoluzione simbiotica tra organizzazione della produzione e organizzazione del lavoro nel settore manifatturiero, sottolineandone i piu recenti elementi di discontinuita che stanno accompagnando l’una e l’altra verso un nuovo, ormai prossimo, cambio di paradigma. Metodologia . Il contributo esamina il fenomeno in oggetto attraverso ...
Chingning Wang1
Estimated H-index: 1
(NSYSU: National Sun Yat-sen University),
Michelle L. Kaarst-Brown9
Estimated H-index: 9
(SU: Syracuse University)
Since 2008, the weakened global economy has resulted in increased layoffs, hiring freezes, and company closures in high-tech industries. Ironically, there has been increased demand for information technology professionals (IT workers) in non-high-tech industries such as financial services, healthcare, and transportation industries. This idiosyncrasy suggests there is value in exploring IT personnel strategy in non-high-tech industries. Larger firms or high-tech companies commonly compete for IT ...
Published on Feb 1, 2014in Journal of Business Research 4.03
Maureen G. Butler3
Estimated H-index: 3
(UT: University of Tampa),
Carolyn M. Callahan6
Estimated H-index: 6
(U of M: University of Memphis)
Using event study methodology and two-stage regression analysis on a sample of firms announcing human resource outsourcing (HRO) contracts, this study tests the association between administrative HRO and firm-level capital market and long run operating performance, with archival financial data controlling for endogeneity and outsourcing decision optimality. The results demonstrate that the equity capital market responds positively to client firms announcing administrative HRO, particularly servi...