Exploration of influencing factors on hotel activities outsourcing, using specific assets feature in Transactions Cost Economics theory (TCE)

Abstract

Very little work has been carried out exploring the factors influencing the decision making for hotel activities outsourcing. For this reason the current research, by focusing on TCE, seeks to understand and identify the factors that influence managers’ decision making about hotel activities outsourcing. From among the three dimensions involved in TCE, Specific Assets is selected as the focal point of the study. Each of the six types of assets, discussed by Williams, is investigated for its influence on the outsourcing decision making. Therefore, six hypotheses are defined to test the linkage between each type of the specific assets and activities outsourcing. The research method is survey, conducted by questionnaire and semi- structured interviews. Spearman’s bivariate correlation test is performed to explore existence of meaningful relationships among variables. Findings refute two hypotheses and approve four of them. Temporal and physical specific assets are found to have no meaningful relationship with activities outsourcing; and hotels prefer to perform these activities themselves. The other four types of assets may cause hotel managers to outsource their activities.

Keywords

• transactions cost theory
• outsourcing
• hotel industry
• specific assets