Configurational examination of successful human resources outsourcing

Abstract

Purpose

The causal conditions leading to successful human resources outsourcing (HRO) have until now attracted only limited research attention. To address this shortcoming, the purpose of this paper is to investigate how a firm and a HR provider should work together to ensure successful HRO.

Design/methodology/approach

By applying a fuzzy-set qualitative comparative analysis, the authors demonstrate how combining in different ways provider quality, business understanding, trust, and closed HRO networks can lead to HRO success. In addition, this study compares the causal combinations between cases with differing levels of HR-task interdependence and IT use.

Findings

The results of this study reveal three common solutions that lead to successful HRO from both economic and relational viewpoints. The findings also indicate that, from an economic viewpoint, trust is a core condition for achieving HRO success. Moreover, HR-task interdependence and IT use alter the number of solutions and the conditions for attaining HRO success.

Practical implications

Based on the solutions proposed herein, firms can consider different ways to achieve HRO success under diverse conditions.

Originality/value

This work also contributes to building new theories regarding HRO, trust, knowledge sharing, and IT use.

Citation

Nguyen, T.T.T. and Chang, M.-L. (2017), "Configurational examination of successful human resources outsourcing", Management Decision, Vol. 55 No. 8, pp. 1681-1697. https://doi.org/10.1108/MD-10-2016-0723