Journal of Administrative and Business Studies
Details
Journal ISSN: 2414-309X
Article DOI: https://doi.org/10.20474/jabs-5.5.3
Received: 9 August 2019
Accepted: 13 September 2019
Published: 31 October 2019
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  • Factors affecting to long-term relationship of outsourcing: A case study of Thailand


Thitiporn Katato, Natt Leelawat, Jing Tang

Abstract

This research focuses on the analysis of finding factors that positively affect the long-term relationship of outsourcing. A model is being proposed that suggested that cooperation, control, and improvement can affect performance and then further affect outsourcing long-term relationships. Using a data set collected from 322 questionnaire surveys via e-mail and 200 questionnaire surveys sent to personal to test the proposed hypotheses from June 1 to June 30, 2019. As a result, 219 respondents were used for data analysis (41.95 percent). This study utilizes Partial Least Squares (PLS) to confirm the hypotheses–a variance-based Structural Equation Modeling (SEM) approach. The results showed that at 0.05 significance level, cooperation has a positive effect on the control. Moreover, cooperation and improvement have a positive effect on the performance, and performance has a positive effect on outsourcing long-term relationships. This study suggests that outsourcing suppliers in Thailand maintain or extend their outsourcing relationships with their current customers.