Factors affecting to long-term relationship of outsourcing: A case study of Thailand

Thitiporn Katato, Natt Leelawat and Jing Tang
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Thitiporn Katato: Department of Industrial Engineering, Faculty of Engineering, Chulalongkorn University, Bangkok, Thailand
Natt Leelawat: Disaster and Risk Management Information Systems Research Group, Chulalongkorn University, Bangkok, Thailand
Jing Tang: International School of Engineering, Chulalongkorn University, Bangkok, Thailand

Journal of Administrative and Business Studies, 2019, vol. 5, issue 5, 281-290

Abstract: Outsourcing is very important for organizations to achieve better performance, such as cost reduction, core activities, and knowledge acquisition. Thailand is as known worldwide as a key outsourcing service provider. To know factors affecting to long-term relationship outsourcing are essential for the business continuities of Business Process Outsourcing (BPO) providers in Thailand. Based on literature review, this research proposed a model suggested that cooperation, control and improvement can affect performance and then further affects outsourcing long-term relationship. Using a data set collected from 322 questionnaire surveys via e-mailed, and 200 questionnaire surveys sent to personal to test the proposed hypotheses from June 1 to June 30, 2019. As a result, 219 respondents were used for data analysis (41.95 percent). To confirm our hypotheses, we use Partial Least Squares (PLS)–a variance-based Structural Equation Modeling (SEM) approach. The results showed that at 0.05 significance level, cooperation has a positive effect on the control. Moreover, cooperation and improvement have a positive effect on the performance and performance has a positive effect to outsourcing long-term relationship. This study provides some suggestions to outsourcing suppliers in Thailand to maintain or to extend their outsourcing relationships with their current customers.

Keywords: Outsourcing; Outsourcing performance; Outsourcing long-term relationship; Thailand (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2019:p:281-290

DOI: 10.20474/jabs-5.5.3

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