Chinese Enterprises To Undertake International Service Outsourcing Empirical Research

International service outsourcing, is a business model that enterprise (especially multinational corporations) outsource its IT support services, human resources management or business processes such as demand for the service entrusted to other enterprises in different country, in order to focus on their core business and achieve the business objectives better. With the global industrial transferring and value chain restructuring deepening, this business model is playing an increasingly important role. Outsourcing may be the most promising industries in the tide of Globalization. The worldwide industrial restructuring, brought about by the current financial crisis, will bring more opportunities to international service outsourcing industry. Under the impact of the financial crisis, more and more multinational companies and financial institutions will outsoure their business process to low-cost countries and regions, in order to cut cost. Therefore, the financial crisis did not push the prices down, but demonstrate its unique advantages and vitality:a substantial increase in the total market, the gradual proliferation of regional, and constantly enrich the buseness connotation.Since 1980s, China's manufacturing sector seize the opportunity of international transferring of production, by virtue of cost advantages, and hold a large number of manufacturing outsourcing business. However, this mode of economic growth increasingly present its shortcomings:the conflicts between economic growth and energy, between resources and the environment, are intensified, and the dependence of the economic growth towards exports and investment is becoming serious and serious. It is of great significance for China to undertake international service outsourcing, only in this way can China changes economic growth model and improve export dependency situation, to maintain growth, and promoting the employment. From the micro perspective, we can research the mechanism of trust better. The inevitable result is to provide management recommendations for Chinese corporations participate in the activities of international service outsourcing.Through in-depth literature study and extensive field investigation, we found that in the current international service outsourcing activities, the trustor(mainly multinational companies and foreign-invested enterprises) are in a strong position and a buyer's market, and Chinese corporations are in the weak position. The trustor and the trustee are in a severe asymmetries and imbalances state. In order to study trust mechanism and help the Chinese enterprises to improve their level of trustworthiness, and to accept more business, it is necessary to carry out empirical research from the contracting party enterprise. Chinese enterprises in undertaking to build confidence between the parties, the in absolute weak position.This dissertation is based on social exchange theory, and research the trust mechanism between the trustor and the trustee in the circumstance of international service outsourcing. First, through the inheritance of social exchange theory, this dissertation analyse the differences of economic exchange and social exchange,and illustrate the fundamental difference between international service outsourcing and manufacturing outsourcing. Then we analyse the existing empirical research literature of inter-firm trust, social exchange theory and principal-agent theory, as well as on the basis of field research, this paper built an mechanism model of international service outsourcing in the party awarding the trust. This research selects more than 200 corporations in China as a sample to collect data, using Structural Equation Modeling and AMOS7.0, we test the hypothesis presented in this paper. Empirical research found that:1. Historical information has a significant influence on trust:the more successful the co-operation in the past, the higher degree of trust the principal towards the agent. The agent company's reputation is positive to the degree of trust the principal towards the agent.2. The current state of the international service outsourcing enterprises, and the relationship between the principle and the agent are all. The assessment of the principle towards the agent's capacity to undertake the outsourcing business is positive to the degree of trust perceived by the priciple; The assessment of the principle towards the agent's efficacy to undertake the outsourcing business is positive to the degree of trust perceived by the priciple; The assessment of the principle towards the agent's benevolence to undertake the outsourcing business is positive to the degree of trust perceived by the priciple; The assessment of the communication between the principle and the agent is positive to the degree of trust perceived by the priciple; The assessment of the value compatibility between the principle and the agent is positive to the degree of trust perceived by the priciple.3. The impact between the past experience of cooperation, the receiving party's reputation and the perceived level of confidence, is depended on the intermediary role of the current evaluation of the variables. Among these 10 relationship path, there are six fully supported (full mediation), two weak support (partial mediation), two did not support (without an intermediary effect). Structural equation model analysis supports the conclusions that an intermediary form of the overall model is reasonable.The innovation and theoretical contributions of this study are mainly:First, the research develops the social exchange theory and its application to international service outsourcing enterprises. Through studying on the relationship among economic exchange and social exchange, this dissertation explain the essential difference between international service outsourcing and the manufacturing outsourcing; secondly, study content of innovation, whether outsourcing, service outsourcing, inter-firm trust, or international service outsourcing, there are many classical literature in any single field. However, what we need is theoretical study combined cross-study, and comprehensive study. This paper combined economics, management science, sociology, theory, and results of previous studies, and made many creative application and development. Third, through the enterprise level empirical research, this research confirms the existence and importance of trust in international service outsourcing enterprises, most important, this dissertation researched the generate mechanisms of the antecedent variables.Of course, regardless of some academic attainments, the study still remains many shortcomings. In the last part of this paper, the author presents the limitations of this study and several issues that need to be studied in the future.