SUPPLIER MANAGEMENT PRACTICE AND SERVICE QUALITY: CRITICAL REVIEW ON MEDIATING ROLE OF OUTSOURCING SERVICE PROVIDER CAPABILITIES

Abstract

The increased demand for properties become part of the investment assets in Hong Kong. Facilities management practitioners need to face the challenges of proper maintenance and services to maintain the value of the property assets. Based on the literature, facilities management companies can benefit from the share of market strength through their service providers. Hence, with the increasing demand for quality services, facilities management companies need to strive for survival and maintain their business power in the industry. Nonetheless, literature shows that the service quality in facilities management is lacking. Past research put less attention in conducting a critical review of research articles related to supplier management practice in the facilities management industry. Additionally, the review identified a missing link of supplier management practice and service quality with the presence of outsourcing service provider capabilities as a mediator. The critical review outcome assists the development of a framework to link the relationships among supplier management practice, outsourcing service provider capabilities and service quality. This paper attempts to provide important supports for facilities management companies to capture the disposition of the company. For having better leverage organizational context by exploiting relationships with outsourcing service providers, this paper extends Resource-based View Theory into outsourcing and service quality context. Thus, this paper attempts to fill important gaps in the above contexts. Finally, this paper suggests several recommendations for future study directions in the area of service quality in the facilities management industry.