Business outsourcing and organisational performance: the case of the Greek hotel industry

Abstract

The adoption of the outsourcing strategy for services and products is expanding rapidly worldwide. The strategic character of outsourcing has led many hotels in Greece to appreciate its significant role in the pursuit of improved performance. This study empirically investigates the outsourcing strategy adopted by Greek hotels. The research models were validated, using data collected from 106 questionnaires, completed by Greek hotel managers. It is found that hotel managers believe that outsourcing has a clear, significant and positive influence on achieving operational objectives such as financial and flexibility improvements, access to new managerial and sourcing methods and quality improvements. In addition, the impact of outsourcing on organisational financial and non-financial performance, from the aspect of the strategic value of the activities, is also examined. Surprisingly, the results indicate that there is no evidence supporting the existence of a significant direct effect of outsourcing on the performance of hotels in Greece. Hotel managers, therefore, should realise that outsourcing is a tool that is used sensibly it can help hotels improve specific activities and achieve some, mainly non-financial, targets. Further research should attempt to led some light on the conditions under which outsourcing of specific activities can enhance hotels' performance.

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