The role of transaction costs and institutional forces in the outsourcing of recruitment

Dasborough, Marie and Sue-Chan, Christina (2002) The role of transaction costs and institutional forces in the outsourcing of recruitment. Asia Pacific Journal of Human Resources, 40 3: 306-321. doi:10.1177/1038411102040003255


Author Dasborough, Marie
Sue-Chan, Christina
Title The role of transaction costs and institutional forces in the outsourcing of recruitment
Journal name Asia Pacific Journal of Human Resources   Check publisher's open access policy
ISSN 1038-4111
Publication date 2002-12
Sub-type Article (original research)
DOI 10.1177/1038411102040003255
Volume 40
Issue 3
Start page 306
End page 321
Total pages 16
Editor H. de Cieri
Place of publication Sydney, NSW, Australia
Publisher Sage Publications
Collection year 2002
Language eng
Subject C1
350201 Human Resources Management
780108 Behavioural and cognitive sciences
Abstract This study investigated reasons for the outsourcing of a core HRM function, recruitment. Drawing from transaction costs and institutional theories, it was hypothesised that the pressure to minimise transaction costs and the presence of industry trends towards outsourcing would be positively associated with the outsourcing of recruitment. Survey data were gathered from 1I 7 HR professionals in Australia. Both hypotheses were partially supported. Specifically, the outsourcing of recruitment activities was positively associated with trust in the agency supplying the recruitment service and with the need to reduce internal labour but not fixed costs. With regard to institutional theory, the outsourcing of recruitment was positively associated with mimetic but not coercive forces. The study concludes that although most assumptions about recruitment agency use are expressed in economic terms, in reality, HRM practices are also influenced by forces exerted by the institutional environment in which organisations are located.
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
 
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Created: Tue, 14 Aug 2007, 18:45:15 EST