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Risks and Benefits of Outsourcing Hotel Operations: A Comparison between Scotland and Taiwan

Author

Listed:
  • Tomás F. Espino-Rodríguez

    (University of Las Palmas de Gran Canaria, Edificio departamental de Ciencias Económicas y Empresariales, Modulo C, 35017 Las Palmas de Gran Canaria, Spain)

  • Pei Chun Lai

    (Department of Hotel and Restaurant Management, No 1 Shuefu Road, Neipu, Pingtung 912, Taiwan)

  • Tom Baum

    (University of Strathclyde, 50 Richmond Street, Glasgow G1 1XU, UK)

Abstract

This paper examines the use of outsourcing in the activities comprising hotel operations in Scotland and Taiwan. Outsourcing is a key process integrated into the design of the supply chain management. The research also focuses on empirically identifying the role of the outsourcing strategy in hotels. To this end, the authors propose two hypotheses to study the relationship between the benefits and risks of outsourcing and the tendency to use third-party organizations. These hypotheses are analysed and tested in the two regions. The study was conducted on a representative sample of 118 hotels in Scotland and Taiwan. A questionnaire was used to obtain the findings. The results indicate that the principal candidates for outsourcing are the activities requiring technical skills and those services not involving direct contact with guests. No significant differences were found between the current levels of outsourcing in Scottish and Taiwanese hotels. The findings indicate that a stronger perception of the risks and benefits of outsourcing has a greater influence on outsourcing strategy. Furthermore, in the case of Scottish hotels, it is the benefits that determine the level of outsourcing, while it is the risks that do so in Taiwanese hotels. This work contributes to the literature on outsourcing from a services perspective.

Suggested Citation

  • Tomás F. Espino-Rodríguez & Pei Chun Lai & Tom Baum, 2012. "Risks and Benefits of Outsourcing Hotel Operations: A Comparison between Scotland and Taiwan," Tourism Economics, , vol. 18(1), pages 95-120, February.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:1:p:95-120
    DOI: 10.5367/te.2012.0109
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    References listed on IDEAS

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    1. McIvor,Ronan, 2005. "The Outsourcing Process," Cambridge Books, Cambridge University Press, number 9780521844116.
    2. Quélin, Bertrand & Duhamel, François, 2003. "Bringing Together Strategic Outsourcing and Corporate Strategy:: Outsourcing Motives and Risks," European Management Journal, Elsevier, vol. 21(5), pages 647-661, October.
    3. Prashant Kale & Harbir Singh & Howard Perlmutter, 2000. "Learning and protection of proprietary assets in strategic alliances: building relational capital," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 217-237, March.
    4. Michael J. Leiblein & Douglas J. Miller, 2003. "An empirical examination of transaction‐ and firm‐level influences on the vertical boundaries of the firm," Strategic Management Journal, Wiley Blackwell, vol. 24(9), pages 839-859, September.
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    Citations

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    Cited by:

    1. Ming-Hsiang Chen & Kun Lun Wu & Hung-Jen Su, 2014. "Research Note: A Study of the Business Cycle of the Hotel Industry in Taiwan," Tourism Economics, , vol. 20(3), pages 655-664, June.
    2. Tomás F. Espino-Rodríguez & Juan Carlos Ramírez-Fierro, 2018. "The Relationship Between Strategic Orientation Dimensions and Hotel Outsourcing and Its Impact on Organizational Performance. An Application in a Tourism Destination," Sustainability, MDPI, vol. 10(6), pages 1-17, May.
    3. Tomás F. Espino-Rodríguez & Juan Carlos Ramírez-Fierro, 2018. "Outsourcing Performance in Hotels: Evaluating Partnership Quality," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    4. Mahmoud Gebril Taha & Tomás F. Espino-Rodríguez, 2020. "The Impact of the Organizational Culture on Hotel Outsourcing and Sustainable Performance an Empirical Application in the Egyptian Hotel Sector," Sustainability, MDPI, vol. 12(22), pages 1-25, November.
    5. Tomás F. Espino-Rodríguez, 2023. "Research on Outsourcing by Hotel Firms: Current State and Future Directions," Tourism and Hospitality, MDPI, vol. 4(1), pages 1-15, January.
    6. Begoña Fuster & Adelaida Lillo-Bañuls & Carmen Martínez-Mora, 2018. "Offshoring of services as a competitive strategy in the tourism industry," Tourism Economics, , vol. 24(8), pages 963-979, December.
    7. De Vita, Glauco & Tekaya, Arafet, 2015. "Hotel outsourcing under asset specificity: “The good, the bad and the ugly”," Tourism Management, Elsevier, vol. 47(C), pages 97-106.

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