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1、Property ManagementEconomic perspective on outsourcing of property management services Terence Y.M. LamArticle information:To cite this document: Terence Y.M. Lam, (2012),“Economic perspective on outsourcing of property
2、management services“, Property Management, Vol. 30 Iss 4 pp. 318 - 332 Permanent link to this document: http://dx.doi.org/10.1108/02637471211249470Downloaded on: 30 June 2016, At: 11:18 (PT) References: this document con
3、tains references to 54 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 1059 times since 2012*Users who downloaded this article also downloaded:(201
4、4),“The value of property management services: an experiment“, Property Management, Vol. 32 Iss 3 pp. 213-223 http://dx.doi.org/10.1108/PM-06-2013-0035(2013),“Strategies in real estate management: two strategic pathways“
5、, Property Management, Vol. 31 Iss 4 pp. 311-325 http://dx.doi.org/10.1108/PM-10-2012-0034(1994),“Property Management in Hong Kong: An Overview“, Property Management, Vol. 12 Iss 4 pp. 18-23 http://dx.doi.org/10.1108/026
6、37479410071027Access to this document was granted through an Emerald subscription provided by emerald-srm:414921 []For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Eme
7、rald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.About Emerald www.
8、emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
9、providing an extensive range of online products and additional customer resources and services.Downloaded by Florida State University At 11:18 30 June 2016 (PT)Economic perspective on outsourcing of property management s
10、ervicesTerence Y.M. Lam Department of the Built Environment, Anglia Ruskin University, Chelmsford, UKAbstractPurpose – The purpose of this paper is to identify the economic forces influencing the outsourcing process of p
11、roperty management services, and investigate how these forces should be applied in order to maximize the productive efficiency and performance quality, thus ensuring optimal use of resources. Design/methodology/approach
12、– Market competition and transaction monitoring were identified to be the fundamental factors. Single-case study method was used to quantitatively examine the impact of these economic forces on the outsourcing of propert
13、y management services of the Hong Kong Housing Authority. Findings – The property services market was contestable, and through competitive tendering the level of competition had a significant negative impact on productio
14、n cost and a significant positive relationship with service quality. Fee level was also found to have no significant effect on service quality. Professional maintenance services were found to be complex and associated wi
15、th significant transaction costs, especially where there was a high degree of contact with tenants. Research limitations/implications – The outsourcing strategy forms a conceptual baseline on which further research can b
16、uild to test its significance in many other settings, thus resulting in a more robust economic theory for outsourcing of property management services. Practical implications – Competitive tendering should be adopted for
17、outsourcing to minimize production cost and maximize service quality. The overall transaction costs should be minimized by focusing the limited resources on monitoring of the complex professional maintenance services, es
18、pecially the services for major planned maintenance works where there are many occupiers involved. Originality/value – The confirmatory tests indicate that the strategic objectives of cost and quality improvement from ou
19、tsourcing, as expected by the stakeholders, can be achieved. Hence the research contributes to the property management practice by developing an economic strategy which optimizes the use of resources for the benefit of c
20、orporate organizations which own a property portfolio, whilst at the same time satisfying the power and needs of the tenants and other stakeholders. Keywords Hong Kong, Property management, Resource management, Outsourci
21、ng, Stakeholder analysis, Economic forces, Optimal use of resources, Stakeholder needs Paper type Research paperIntroduction In new public management, it is argued that outsourcing and market competition are often adopte
22、d to deliver public services, based on the argument that such approach can improve productive efficiency and service quality (Walsh, 1995). In the private sector, outsourcing of services has proliferated through various
23、industries and property services are commonly contracted out (Field Fisher Waterhouse and Remit Consulting, 2004). The International Facilities Management Association (IFMA, 2006) conducted a questionnaire survey on outs
24、ourcing of facilities and property services to its North America members and confirmed that the percentage of firms outsourcing one or more services was 77 per cent in 2006. In the UK, outsourcing of public services has
25、becomeThe current issue and full text archive of this journal is available atwww.emeraldinsight.com/0263-7472.htmReceived 7 October 2011 Revised 30 December 2011 Accepted 19 January 2012Property Management Vol. 30 No. 4,
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