A Conceptual Model for Analysing the Impact of Outsourcing Decision on FM Service-Level Performance

Literature has established FM as one of the most thriving disciplines in the property and construction industry domain. The general submission is that it has transformed over the years from what was traditionally perceived to be mere facilities maintenance to a profession that integrates the management of an organization's buildings and infrastructure across the three levels of management, thereby creating an environment that supports the primary objectives of that organization. Previous studies have equally emphasized the importance of outsourcing as a viable strategy for improving performance through value creation in organisations. This study develops a conceptual model in an attempt to understand the attributes of outsourcing decision and their links to FM services performance. The hypothesized model employs structural equation modeling methodology to examine the direct and indirect associations between latent constructs of outsourcing decision (comprising 31 items or attributes) and their relative impact on FM services performance operationalized as quality performance QP, time performance TP, and value performance VP. Based on empirical data from Nigeria's FM industry, the result of the final structural equation model is expected to provide clear understanding of underlying relationships between outsourcing decision factors and their interactions with service-level performance in the context of FM services provision, thereby enhancing existing body of knowledge on the concepts of outsourcing and facilities management.