Outsourcing Performance in Hotels: Evaluating Partnership Quality

Abstract

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.