Design of Sustainable Outsourcing Services for Facilities Management: Critical Success Factors

Lok, Ka Leung; Opoku, Alex; Baldry, David

doi:10.3390/su10072292

Cited by 25 publications

(43 citation statements)

References 48 publications

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“…Finally, implications for theory and practice are discussed.Many organizations experience difficulties in forming and managing a successful outsourcing partnership with service suppliers. Thus, for example, in the facilities management sector, many clients and suppliers are not working in advance [9]. In addition, Tamás [10] points out that inappropriate outsourcing can negatively affect operational efficiency.…”

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confidence: 99%

Outsourcing Performance in Hotels: Evaluating Partnership Quality

Espino‐Rodríguez

Ramírez-Fierro

2018

Sustainability

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In this study, a research model investigates the influence of various factors of the outsourcing relationship that condition partnership quality. The factors considered as determinants of outsourcing partnership quality are the strategic benefits and the degree of outsourcing. Partnership quality is based on relationships governed by confidence, commitment, business understanding, shared benefits and risks, and conflict resolution. The model also studies the influence of the partnership quality between the supplier and the hotel on the outsourcing performance, considered from the financial, strategic, and overall satisfaction perspectives. To test the hypotheses, this study used the Partial Least Squares (PLS) technique with a sample of managers in an important tourist destination in Spain. The results of the study confirm that the strategic benefits and the degree of outsourcing perceived by the manager are determinant factors of the quality of the outsourcing partnership. In addition, they show that closer relationships with service suppliers imply greater outsourcing performance. Finally, implications for theory and practice are discussed.Many organizations experience difficulties in forming and managing a successful outsourcing partnership with service suppliers. Thus, for example, in the facilities management sector, many clients and suppliers are not working in advance [9]. In addition, Tamás [10] points out that inappropriate outsourcing can negatively affect operational efficiency. In this regard, Lee [11] indicates that the nature of the outsourcing relationship needs to evolve from a contract between the service supplier and the company that receives the service to a closer relationship or partnership between the two organizations. A partnership is defined as an interorganizational relationship designed to achieve the participants' shared objectives [11].Researchers believe that when organizations have relationships with other companies, they want to reach a strategic goal where the members seek shared objectives, fight for mutual benefit, and recognize a high level of interdependence [12]. Even though the use of the hotel outsourcing strategy is gaining ground, no studies have been carried out to analyze these questions.The level of outsourcing perceived by management should influence the type of interorganizational relationships developed. Hotels outsource some of the necessary activities to provide service to the client; thus, in the process of transforming resources into goods and services (outputs), it becomes necessary to manage the relationships as part of the productive system. Because of this increase in the outsourcing of activities, managers' tasks are transformed, and they become managers of interorganizational relationships. Therefore, they not only have to take care of the management of the productive system, but they also must manage the relationships among external suppliers.Previous studies on outsourcing relationships have used social theories based on trust and commitment to explain t...

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confidence: 99%

Outsourcing Performance in Hotels: Evaluating Partnership Quality

Espino‐Rodríguez

Ramírez-Fierro

2018

Sustainability

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“…Lok et al [11] address that outsourcing practices have impact on the outsourcing relationship types and thus the profit equations of organisations. Clients openly and regularly review their FM relationships with service providers through the evaluation of critical success factors [19]. It is believed that FM service provider performance depends on the outsourcing arrangements [12][13][14][15].…”

Section: Literature Reviewmentioning

confidence: 99%

“…It outlines various critical success factors relating to FM outsourcing, and explains why the design of FM outsourcing strategies must take critical success factors into account. It shows the importance of understanding these critical success factors in the context of Hong Kong's most widely implemented current outsourcing arrangements for educational facilities [19]. This study is to test the hypothesis whether the critical success factors of outsourcing strategies of the four FM services such as building maintenance, security, cleaning and catering in the educational facilities are sustainably effective or not from clients' and service providers' perspectives.…”

Section: Literature Reviewmentioning

confidence: 99%

The Challenges of Sustainable Development on Facilities Management Outsourcing Services: An Investigation in Educational Facilities

et al. 2021

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(1) Background: Generally, firms are reluctant to report outsourcing failures, no matter what industry they operate within. To eliminate poor performance of outsourced service providers, it is necessary to establish a specific outsourcing relationship model for facilities management (FM). The purpose of this paper is to study the concept of outsourcing relationships in relation to FM and to investigate the design of the critical success factors on sustainable outsourcing strategies through a discussion of four dimensions (ownership of FM assets, control of FM assets, competitive position and long-term plan). (2) Methods: Based on two questionnaire surveys, data were collected from 38 clients and 34 service providers. The study evaluated the FM outsourcing strategies from critical success factors in educational facilities in Hong Kong. (3) Results: This study explains the impact of FM outsourcing strategies on Hong Kong’s four commonly outsourced FM contracts including building maintenance, security, cleaning and catering from the clients’ and service providers’ point of view. (4) Conclusions: This is the outsourcing way forward in order to create a better working environment conducive for all the parties that would result in better sustainability of FM’s future and thus impact the economic objectives of sustainable development, in parallel with adding social and environmental value.

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“…A partnership based on a management contract can facilitate knowledge sharing that improves the organization's performance. Lok et al [45] reviewed the concept of outsourcing in relationships with facility management, which may result in an alliance. This is because joint ventures and franchising alliances may be formed [35].…”

Section: Inter-organizational Information System and Partnershipmentioning

confidence: 99%

Adaptability of Inter-Organizational Information Systems Based on Organizational Identity: Some Factors of Partnership for the Goals

2019

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Given the current trade friction between the United States of America and the People’s Republic of China, the progress of the Sustainable Development Goals (SDG) may slow down in some areas in both countries, and there is a need for organizations to understand more of the factors that affect the adaptability of inter-organization information systems (AIOISs) in order to support the 17th Sustainable Development Goal. This research proposes a new model for the adaptability of IOISs based on organizational identity. The hypotheses for this research were deduced from the literature in order to identify and extract the factors for adaptability and partnership. Subsequently, a conceptual model has been developed and empirically tested using the data from 259 samples. The exploratory and confirmatory analysis showed that organizational learning mechanisms (OLM) and knowledge sharing (KS) have a significant positive effect on the identity of multi-organization alliances (IMOAs), and on the adaptability of IOISs, as well as indirectly affecting the adaptability of IOISs through the mediating role of the identity of the multi-organization alliance. In addition, organizational collaboration (OC), commitment, and trust have a significant positive effect on the identity of a multi-organization alliance, whereas there is no direct relationship between organizational collaboration, commitment, trust, and the adaptability of the IOIS. Lastly, the mediating roles of IMOA on AIOIS are supported.

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Design of Sustainable Outsourcing Services for Facilities Management: Critical Success Factors

Cited by 25 publications

References 48 publications

Outsourcing Performance in Hotels: Evaluating Partnership Quality

Outsourcing Performance in Hotels: Evaluating Partnership Quality

The Challenges of Sustainable Development on Facilities Management Outsourcing Services: An Investigation in Educational Facilities

Adaptability of Inter-Organizational Information Systems Based on Organizational Identity: Some Factors of Partnership for the Goals

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