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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Thitiporn Katato & Natt Leelawat & Jing Tang, 2019. "Factors affecting to long-term relationship of outsourcing: A case study of Thailand," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(5), pages 281-290.
    • Handle: RePEc:apb:jabsss:2019:p:281-290
    DOI: 10.20474/jabs-5.5.3
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    References listed on IDEAS

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    1. Sapna Rijal, 2016. "The influence of transformational leadership and organizational culture on learning organization: A comparative analysis of the it sector," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(3), pages 121-130.
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