Outsourcing and Excellence of Core HR Practices: Comparing institutional mechanisms among market economies

Klaas Szierbowski-Seibel (), Marius Claus Wehner () and Rüdiger Kabst ()
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Klaas Szierbowski-Seibel: Paderborn University
Marius Claus Wehner: Heinrich-Heine-Universität Düsseldorf
Rüdiger Kabst: Paderborn University

No 48, Working Papers Dissertations from Paderborn University, Faculty of Business Administration and Economics

Abstract: This study focuses on the boundary decision between outsourcing and excellence of two core HR practices among large organizations in liberal market economies (LMEs) and coordinated market economies (CMEs): recruitment & selection (R&S) and training & development (T&D). By adding institutional arguments and comparing two market economies in this context, we investigate when and why organizations outsource certain core HR practices to external vendors and professionalize and improve other core HR practices at the same time. We use a sample of 1,948 organizations in eight countries of a large-scale survey. The results show that organizations in LMEs tend to professionalize and improve their R&S excellence by simultaneously diminishing R&S outsourcing and T&D excellence. Conversely, organizations in CMEs professionalize and improve their T&D excellence by simultaneously increasing R&S outsourcing and decreasing R&S excellence. However, the results for T&D outsourcing are not significant. Implications for theory within the context of core HR practices are discussed.

Keywords: Outsourcing; HR excellence; recruitment and selection; training and development; institutional theory; market economies (keywords) (search for similar items in EconPapers)
Pages: 40 pages
Date: 2019-04
New Economics Papers: this item is included in nep-cse
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