International Journal of Business, Law, and Education Vol. 7 No. 2 (2026): International Journal of Business, Law, and Education (on progres) Pages 1700-1706

The Influence of Outsourcing Employees’ Role on Company Performance

Authors

DOI:

https://doi.org/10.56442/ijble.v7i2.1597
How to Cite

Keywords:

company performance, business activities, human resource management, Job satisfaction, outsourcing employee

Abstract

This study analyzes the effect of outsourcing employees’ role on company performance. A quantitative approach with a correlational design was employed. The sample consisted of 30 respondents selected through purposive sampling from a manufacturing and petrochemical company utilizing outsourcing services. Data were collected using a Likert-scale questionnaire with 19 items for the outsourcing employee variable and 11 items for the company performance variable. Validity was assessed using Pearson correlation (r-table = 0.361), and reliability was measured using Cronbach’s Alpha. Simple linear regression and Pearson correlation were used to test the hypothesis. Results reveal a strong positive correlation (r = 0.937) with a coefficient of determination of R² = 0.879. The regression equation is Y = −2.214 + 0.632X. The t-test confirms t-count (14.247) > t-table (2.048, df = 28, α = 5%), with a significance of 0.000. These findings confirm that outsourcing employees’ role significantly and positively affects company performance.

Author Biography

Pulung Winata Sari, Universitas Terbuka

Student of Management Program

References

Andriyansah, & Fatimah, F. (2021). Edukasi Mahasiswa Doktoral. Dua Pustaka (CV). https://penerbitduapustaka.blogspot.com

Andriyansah, Ginting, G., Pujiwati, A., Hidayah, Z., Sylvana, A., Irmawaty, I., Sunarsih, N., Maesaroh, I., Pujiastuti, S., Nasoha, M., Subekti, R., & Praningtyas, E. (2024). Preskripsi Menulis Karya Ilmiah (Untuk mahasiswa Program Sarjana pada PTJJ). Diva Pustaka.

Ang, S., & Slaughter, S. A. (1998). Organizational psychology and performance in IS employment outsourcing and insourcing. Proceedings of the Hawaii International Conference on System Sciences, 6, 635–643. https://www.scopus.com/pages/publications/0031605992?origin=resultslist

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Butler, M. G., & Callahan, C. M. (2014). Human resource outsourcing: Market and operating performance effects of administrative HR functions. Journal of Business Research, 67(2), 218–224. https://doi.org/https://doi.org/10.1016/j.jbusres.2012.09.026

Fatimah, F. (2021). Analisis dan interpretasi data (Andriyansah (ed.)). Universitas Terbuka.

Gilley, K. M., Greer, C. R., & Rasheed, A. A. (2004). Human resource outsourcing and organizational performance in manufacturing firms. Journal of Business Research, 57(3), 232–240. https://doi.org/https://doi.org/10.1016/S0148-2963(02)00304-1

Gospel, H., & Sako, M. (2010). The unbundling of corporate functions: the evolution of shared services and outsourcing in human resource management. Industrial and Corporate Change, 19(5), 1367–1396. https://doi.org/10.1093/icc/dtq002

Han, H.-S., Lee, J.-N., & Seo, Y.-W. (2008). Analyzing the impact of a firm’s capability on outsourcing success: A process perspective. Information & Management, 45(1), 31–42. https://doi.org/https://doi.org/10.1016/j.im.2007.09.004

Herman, Yeo, S. F., Chaerunnisa, A., & Kim, P. L. (2024). Human Resource Development as a Key to Enhanced Performance: Insights from Outsourcing Employees in a Delivery Service Company. PaperASIA, 40(4b), 1–11. https://doi.org/https://doi.org/10.59953/paperasia.v40i4b.81

Jensen, P. D. Ø. (2012). A passage to India: A dual case study of activities, processes and resources in offshore outsourcing of advanced services. Journal of World Business, 47(2), 311–326. https://doi.org/https://doi.org/10.1016/j.jwb.2011.04.018

Johansson, M., & Olhager, J. (2018). Comparing offshoring and backshoring: The role of manufacturing site location factors and their impact on post-relocation performance. International Journal of Production Economics, 205, 37–46. https://doi.org/https://doi.org/10.1016/j.ijpe.2018.08.027

Koh, W. L., & Yer, L. K. (2000). The impact of the employee-organization relationship on temporary employees’ performance and attitude: testing a Singaporean sample. The International Journal of Human Resource Management, 11(2), 366–387. https://doi.org/10.1080/095851900339918

Lynch, P. D., Eisenberger, R., & Armeli, S. (1999). Perceived organizational support: Inferior versus superior performance by wary employees. Journal of Applied Psychology, 84(4), 467–483. https://doi.org/https://doi.org/10.1037/0021-9010.84.4.467

Mukherjee, D., Gaur, A. S., & Datta, A. (2013). Creating value through offshore outsourcing: An integrative framework. Journal of International Management, 19(4), 377–389. https://doi.org/https://doi.org/10.1016/j.intman.2013.03.015

Ono, Y. (2007). Market thickness and outsourcing services. Regional Science and Urban Economics, 37(2), 220–238. https://doi.org/https://doi.org/10.1016/j.regsciurbeco.2006.08.007

Pauziah, M., & Dwita, F. (2026). The Effect of Compensation and Workload on Turnover Intention Through Job Satisfaction as an Intervening Variable in Security Outsourcing at PT Putratama Satya Bhakti in the Jakarta Area. International Journal of Business, Law, and Education, 7(2), 1254–1269. https://doi.org/10.56442/ijble.v7i2.1496

Riswandi, D. I., Abidin, Z., & Harsono, I. (2024). Quantitative assessment of the relationship between land management practices, financial literacy, supply chain integration, and profitability in agribusiness enterprises. International Journal of Business, Law, and Education, 5(1), 594-602.

Rosin, A. F., Stubner, S., Chaurasia, S. S., & Verma, S. (2019). Outsourcing, information symmetry and governance: The effects of retailers’ formal and informal controls on manufacturers’ outsourcing performance. Journal of Enterprise Information Management, 32(6), 993–1014. https://doi.org/10.1108/JEIM-06-2018-0124

Sukendri, N., & Andriyansah. (2025). Mengenal ragam metode riset (1st ed.). Gapura Biru. https://gapurabiru.com/buku/mengenal-ragam-metode-riset-karya-nengah-sukendri-andriyansah/

Tan, D. C. M. (2010). The mediating role of vendor-client relationship in the relationship between involvement, role clarity and outsourcing result. Business Transformation through Innovation and Knowledge Management: An Academic Perspective - Proceedings of the 14th International Business Information Management Association Conference, IBIMA 2010, 1, 23–35. https://www.scopus.com/pages/publications/84905125613?origin=resultslist

Tinnirello, P. . (2001). New Directions in Project Management (1st ed.). Auerbach Publications. https://doi.org/https://doi.org/10.1201/9781420000160

Trento, C. R., Stüker, S., Pereira, G. M., Borchardt, M., & Viegas, C. V. (2011). Strategic benchmarking of service pricing based on the value added. Journal of Islamic Accounting and Business Research, 2(1), 22–42. https://doi.org/10.1108/17590811111129490

Vagadia, B. (2012). Strategic Outsourcing: Risks, Rewards and Relationships BT - Strategic Outsourcing: The Alchemy to Business Transformation in a Globally Converged World (B. Vagadia (ed.); pp. 81–91). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-22209-2_6

Yang, J., Kim, Y., & Kim, P. B. (2021). Pushing forward high-performance work systems in the hotel industry: A procedural-justice climate to promote higher unit-level outcomes. Tourism Management, 87, 104385. https://doi.org/https://doi.org/10.1016/j.tourman.2021.104385

Downloads

Published

2026-10-31

How to Cite

Sari, P. W. ., & Andriyansah, A. (2026). The Influence of Outsourcing Employees’ Role on Company Performance. International Journal of Business, Law, and Education, 7(2), 1700-1706. https://doi.org/10.56442/ijble.v7i2.1597