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

Author

Listed:
  • Klaas Szierbowski-Seibel

    (Paderborn University)

  • Marius Claus Wehner

    (Heinrich-Heine-Universität Düsseldorf)

  • Rüdiger Kabst

    (Paderborn University)

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.

Suggested Citation

  • Klaas Szierbowski-Seibel & Marius Claus Wehner & Rüdiger Kabst, 2019. "Outsourcing and Excellence of Core HR Practices: Comparing institutional mechanisms among market economies," Working Papers Dissertations 48, Paderborn University, Faculty of Business Administration and Economics.
    • Handle: RePEc:pdn:dispap:48
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    References listed on IDEAS

    as
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    Keywords

    Outsourcing; HR excellence; recruitment and selection; training and development; institutional theory; market economies (keywords);
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