Professional Employer Organizations and Their Role in Small and Medium Enterprises: The Impact of HR Outsourcing

2003 ◽  
Vol 28 (1) ◽  
pp. 43-62 ◽  
Author(s):  
Brian S. Klaas
Keyword(s):  
Transaction Cost ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Transaction Cost Economics ◽  
Small And Medium Enterprises ◽  
Exchange Theory ◽  
Internal Resources ◽  
Market Governance ◽  
Medium Enterprises ◽  
The Impact

While effective HR services and programs can help firms gain competitive advantage, small and medium enterprises (SMEs) often lack the internal resources required to develop and deliver these services and programs. As a result, SMEs increasingly are outsourcing HR activities to professional employer organizations (PEOs). Questions remain, however, about the conditions under which SMEs will benefit from outsourcing HR to a PEO, as well as about the type of benefits that are potentially available. The very nature of many HR activities raises questions about the risks associated with market governance and a PEO's ability to ensure service quality for SMEs. In order for these questions to be addressed, it is necessary to understand the process by which PEO utilization affects SME outcomes. In this article, we use transaction cost economics, social exchange theory, and the strategic HR literature to develop a framework for understanding the factors and conditions likely to affect whether and how an SME will benefit from using a PEO.

Professional Employer Organizations and Their Impact on Client Satisfaction With Human Resource Outcomes: A Field Study of Human Resource Outsourcing in Small and Medium Enterprises

2005 ◽  
Vol 31 (2) ◽  
pp. 234-254 ◽  
Author(s):  
Brian S. Klaas ◽  
Thomas W. Gainey ◽  
John A. McClendon ◽  
Hyuckseung Yang
Keyword(s):  
Human Capital ◽  
Human Resource ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Transaction Cost Economics ◽  
Small And Medium Enterprises ◽  
Client Characteristics ◽  
Human Resource Outsourcing ◽  
Medium Enterprises ◽  
The Impact

Increasingly, small and medium enterprises are outsourcing human resource (HR) activities to professional employer organizations (PEOs). The authors draw on social network theory, transaction cost economics, and social exchange theory to examine how PEO and client characteristics moderate the impact associated with outsourcing human capital-enhancing HR services. Results from a study suggest that using a PEO for human capital-enhancing services was positively related to HR outcomes and that this relationship was stronger when a weak-ties service delivery model was used, client receptivity was high, and the PEO contract was more detailed.

SET: Still a Relevant Theory for the Future of Work

2018 ◽  
Vol 11 (3) ◽  
pp. 482-486
Author(s):  
James N. Kurtessis ◽  
Lindsay Northon ◽  
Valerie N. Streets
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Relevant Theory ◽  
Future Of Work ◽  
Slow Change ◽  
Sufficient Cause ◽  
Short Period ◽  
To Come ◽  
The Impact

Few would argue that the workplace has changed tremendously over a short period of time and will continue to evolve in the years to come. Regardless of whether change is major or minor, lightning fast or painfully slow, change in and of itself may not be sufficient cause for substantial revision of existing theories, such as social exchange theory (SET); the formulation of entirely new theories; or the creation of new constructs. This is for two reasons: (a) the possibility that we overestimate the impact of change on the workplace, and (b) change can be readily incorporated into our existing theories. We expand on each of these points below and describe several possible macrolevel trends that may impact SET in the years to come.

Defending the frontier: examining the impact of internal salesperson evasive knowledge hiding on perceptions of external customer outcomes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nawar N. Chaker ◽  
Edward L. Nowlin ◽  
Doug Walker ◽  
Nwamaka A. Anaza
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Customer Relationships ◽  
Exchange Theory ◽  
Environmental Dynamism ◽  
Content Type ◽  
External Customer ◽  
Knowledge Hiding ◽  
The Impact ◽  
Customer Outcomes

Purpose Salespeople frequently face the predicament of wanting to protect their market knowledge from coworkers while not appearing recalcitrant. Considering the choice of disclosing information or refusing to disclose, they may choose a third option: appearing to share knowledge while concealing substantive information, which this study calls evasive knowledge hiding. This study surmises that the consequences of these choices impact perceptions of customer outcomes. Using social exchange theory, the purpose of this article is to examine the internal relational antecedents and perceptions of external customer outcomes of evasive knowledge hiding, as well as the moderating effects of pushover manager and environmental dynamism. Design/methodology/approach A moderated mediation model was used to analyze survey data from 234 business-to-business salespeople. Findings Internal competition and coworkers’ past opportunistic behavior increase evasive knowledge hiding. These effects are attenuated if the manager is not a pushover. Evasive knowledge hiding decreases perceptions of external customer outcomes, particularly at low levels of environmental dynamism. Research limitations/implications Data was collected from salespeople, which presents a look from perpetrators themselves. While directly observing salespeople was the goal, sourcing and matching customer and manager data would only strengthen the results. Practical implications Salespeople evasively hide their knowledge if it is in their best interest, which may unwittingly hurt perceptions of customer outcomes. Originality/value This study formally introduces salesperson evasive knowledge hiding into the marketing and sales literature. The research highlights the dark side of social exchange theory by demonstrating how internal coworker relationships affect perceptions of external customer relationships via evasive knowledge hiding. This study also introduces pushover manager as an enabling moderating variable.

Impact of night markets on residents' quality of life

2020 ◽  
Vol 48 (8) ◽  
pp. 1-12
Author(s):  
Hao-Kai Hung ◽  
Chang-Che Wu
Keyword(s):  
Quality Of Life ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Future Research ◽  
Q Method ◽  
The Impact ◽  
Night Markets

There is a lack of discussion on the impact of night tourism activities on the quality of life of residents in the area where these activities are held. We adopted the Q method to explore the effect of the night market in Taiwan on residents in the area from the perspective of 4 groups: Long-term neighbors who love the prosperity of the night market, residents who live in the area where the night market is held, residents who dislike tourists but do not mind the vendors, and residents who have integrated the night market into their own life. We discuss and address the conflicts between the perspectives of these groups using social disruption theory, social exchange theory, and empathy. Implications of the findings are described along with directions for future research.

scholarly journals The Impact of E-HRM Usage on HRM Effectiveness

2021 ◽  
Vol 29 (2) ◽  
pp. 118-147
Author(s):  
Yaser M. Al-Harazneh ◽  
Ismail Sila
Keyword(s):  
Social Exchange ◽  
Structural Equation ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Behavioural Intention ◽  
Intention To Use ◽  
Management Support ◽  
Line Managers ◽  
Actual Usage ◽  
The Impact

This study investigated the impact of electronic human resource management (e-HRM) implementation on the effectiveness of the HRM system. The framework of this study was guided by three theories: unified theory of acceptance and use of technology, the social exchange theory, and the leader-member exchange theory. Covariance-based structural equation modelling was used to test the proposed model and hypotheses. The sample consisted of 282 responses from the employees of two telecommunications companies in Jordan. The research findings suggest that performance expectancy had a significant positive effect on behavioural intention to use an e-HRM system, whereas effort expectancy did not. Facilitating conditions had a positive significant impact on e-HRM system usage. Top management support and the HRM role of line managers positively affected behavioural intention to use e-HRM and actual usage of e-HRM, whereas the effect of HR professionals on e-HRM usage was negative. Finally, the actual usage of e-HRM had a significant impact on HRM system effectiveness.

Peer abusive supervision and third-party employee creativity from a social exchange theory perspective

2021 ◽  
Vol 49 (5) ◽  
pp. 1-12
Author(s):  
Liang Tan ◽  
Zhuang Ma ◽  
Jun Huang ◽  
Gengxuan Guo
Keyword(s):  
Social Exchange ◽  
Organizational Support ◽  
Social Exchange Theory ◽  
Negative Impact ◽  
Management Practice ◽  
Abusive Supervision ◽  
Exchange Theory ◽  
Third Party ◽  
Employee Creativity ◽  
The Impact

We used social exchange theory to construct a theoretical framework of peer abusive supervision, third-party perception of organizational support, third-party employee creativity, and third-party perception of supervisory organizational embodiment. We then empirically tested the theoretical model with 367 supervisor–employee paired dyads from five large real estate companies in China. The results show that peer abusive supervision had a negative impact on third-party employee creativity, and third-party perception of organizational support played a mediating role in this relationship. Further, third-party perception of supervisory organizational embodiment positively moderated the impact of peer abusive supervision on third-party perception of organizational support. Our results, which show the spillover effect and boundary conditions of abusive supervision on third-party employee creativity, are significant for the enhancement of employee creativity in corporate management practice.

The Impact of Non-Financial Rewards on Organizational Attractiveness

2019 ◽  
Vol 9 (6) ◽  
pp. 157-165
Author(s):  
Perera K.E.P ◽  
Karunarathne R.A.I.C
Keyword(s):  
Social Exchange ◽  
Undergraduate Students ◽  
Quantitative Research ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Research Approach ◽  
Organizational Attractiveness ◽  
The Social ◽  
The Impact

The main objective of this study was to examine the impact of nonfinancial rewards on organizational attractiveness. Drawing on the social exchange theory we develop and empirically test a model to explain the role of nonfinancial rewards, i.e. work-life balance, learning opportunities, and career advancement on organizational attractiveness. Following the quantitative research approach we collected data from 88 undergraduate students from 3 main universities in management in Sri Lanka. To test the model we developed one hypothesis. The results of simple linear regression suggested that nonfinancial rewards had statistically significant effect on generation Y candidates’ organizational attractiveness. This study mainly contributes to enhancing our understanding of the social exchange theory.

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