Factors Influencing Human Resource Outsourcing Evidence In Vietnam

Abstract

This study explores in depth the factors that affect the "degree of dependence on outsourcing human resource functions" through empirical research and analyzes the impact of moderating variables on the relationship between the "degree of dependence on outsourcing human resource functions" and "benefits of outsourcing human resources" in organizations. This study targeted "human resource department heads" or "those responsible for human resource outsourcing affairs in the organization" as the questionnaire respondents. A total of 1,400 questionnaires were sent out, and 153 valid questionnaires were collected. Multiple regression analysis was used to examine the impact of six independent variables, including "environmental dynamism," "organizational strategy," "degree of involvement of human resource strategy," "human resource strategy," "organizational culture," and "organizational size," on the "degree of dependence on outsourcing human resource functions". In addition, hierarchical regression analysis was used to explore the impact of five moderating variables, including "environmental dynamism," "organizational strategy," "degree of involvement of human resource strategy," "organizational size," and "quality of the cooperative relationship between both parties in the contract" on the relationship between the "degree of dependence on outsourcing human resource functions" and the "benefits of outsourcing human resources". The empirical results indicate that the higher the environmental dynamism of an organization, the higher the outsourcing level of human capital, recruitment and selection, and transactional human resource activities. In addition, smaller organizations tend to outsource their human capital and recruitment and selection activities to a greater extent. The findings extend our knowledge in the field of research.