A contingency model for facilities management outsourcing relationships (CORE) in the Hong Kong higher education sector : an exploratory model for linking FM outsourcing performance to higher education business performance

Lok, KL

Abstract

The focus of study is to determine the relationships between clients and FM
service providers by developing a yardstick for measuring and appraising the
relationships in main FM outsourcing contracts in the higher education sector of
Hong Kong. In this study, “outsourcing relationships” are defined as “the extent to
which an FM outsourcing contract facilitates effective ownership or control of FM
assets, and enhances the competitive positioning and long-term strategies of the
outsourced FM portfolio whilst the client’s requirements are met”.
The most practical and successful approach for improving FM outsourcing
relationships reported in the literature is a model based on quantitative
assessment. A review of the literature suggests that the Four Outsourcing
Relationship Types (FORT) model, used in the information technology industry,
can be adapted for use in FM outsourcing. The data from two Delphi surveys and
two questionnaire surveys, administered to 38 clients and 34 FM service providers,
were used to build the proposed Contingency Outsourcing Relationships (CORE)
model. The data analyses included the Kruskal-Wallis test, the Mann-Whitney U
test and a Multi-nominal logistic regression. The Analytical Hierarchy Process and
two focus group meetings were also used to develop the model.
The CORE model can be used to assess the four categories of outsourcing
relationships by focusing on the four main FM outsourcing service contracts in
Hong Kong’s higher education sector: (i) building maintenance; (ii) security; (iii)
cleaning; and (iv) catering. Other FM outsourcing service contracts are not
covered by the CORE model. In the model, the combination of two different
outsourcing relationship components or dimensions contributes to an outsourcing
relationship type.
In conclusion, the empirical investigation reveals a significant relationship
between FM outsourcing relationship types and services in the context of Hong
Kong’s higher education sector. Clients and service providers have indicated that
applying the FM outsourcing relationship types improves the quality of the
services. The findings indicate a match in the preference for the extent of
outsourcing relationship dimensions on the ownership and control of service
provider involvement on current outsourcing contracts for building maintenance,
cleaning and catering in Hong Kong’s higher education FM industry. This study
also discusses that the importance of matching demand and supply of FM
services plays a major role in the FM outsourcing success.

Citation

Lok, K. A contingency model for facilities management outsourcing relationships (CORE) in the Hong Kong higher education sector : an exploratory model for linking FM outsourcing performance to higher education business performance. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Dec 11, 2013
• Publicly Available Date: Mar 22, 2017