This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Dasborough, M. Articles by Sue-Chan, C. Search for Related Content Social Bookmarking                   What's this?

The Role of Transaction Costs and Institutional Forces in the Outsourcing of Recruitment

University of Queensland Business School, m.dasborough{at}business.uq.edu.au

Christina Sue-Chan

University of Manitoba

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.

Key Words: recruitment • outsourcing • transaction cost theory • institutional theory

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				J. Handy and D. Davy Gendered ageism: Older women's experiences of employment agency practices Asia Pacific Journal of Human Resources, April 1, 2007; 45(1): 85 - 99. [Abstract] [PDF]