The validity of quality practices on performance of outsourced professional housing services

Abstract

PurposeThe purpose of this study is to investigate the actual impact of competition and management practices on performance quality of the outsourced professional housing maintenance services in Hong Kong. Much of the literature is theoretically based and there is a knowledge gap in empirical confirmatory testing of the validity of performance quality theories.Design/methodology/approachIt was hypothesized that there was positive correlation between output performance quality and input competition and management factors. A triangulation methodology was used to develop and test the correlation. The literature review and qualitative interviews with the maintenance consultancy management practitioners of the Hong Kong Housing Authority (HKHA) were used to generate hypothesis, which was then tested by quantitative regression, using data from the maintenance consultancies of the Authority.FindingsThe main hypothesis was transformed into sub‐hypotheses which considered the relationships between service quality and individual input factors of competition level, past performance, project leadership and quality benchmarking. The results of the qualitative and quantitative studies confirmed and validated the hypotheses, and hence substantiated the main hypothesis that there is a significant correlation between performance quality and the relevant competition and management practices adopted in the outsourcing process of professional housing maintenance services.Research limitations/implicationsWhilst the correlation is validated in the context of professional housing maintenance services of the HKHA, it forms a conceptual baseline from which further research can build to provide a regression model in many other public and private sector settings, and for other housing services, including integrated housing maintenance and management professional services. Effective competition and management practices can then be identified to optimize performance quality.Practical implicationsThis paper establishes the validity of the impact of quality practices which the housing or facility managers can apply to enhance the performance quality of outsourced professional housing maintenance services for the benefit of their organization and customers.Originality/valueThis study contributes to quality management of the outsourced professional housing services. Housing organizations can enhance the performance quality of their professional consultants by applying effective competition and management practices so that they can attain best service quality to satisfy the ever‐increasing tenant and owner expectations of value for money housing services from outsourcing.