Exploring HR outsourcing and its perceived effectiveness

Abstract

This study tries to explore the impact of HR outsourcing on its corresponding perceived effectiveness. Meanwhile, four variables, namely environmental dynamism, company strategy, HR involvement in the company's strategy process, and contractor relationship were employed to test the moderating effect between HR outsourcing and its effectiveness. Empirical data are collected from high-level HR executives in 153 large Taiwanese companies. Dynamic environment, prospector company strategy, and good contractor relationship are found to moderate positively the relationship of HR outsourcing and its perceived effectiveness. HR function's involvement in the company's strategic process is found to moderate negatively in the relationship between HR outsourcing and perceived effectiveness. Implications and limitation of this study are discussed.

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