Trust and outsourcing: Do perceptions of trust influence the retention of outsourcing providers in the hospitality industry?

The global trend toward outsourcing necessitates unprecedented symbiosis between client-based organizations—purchasers of these services—and their multiple suppliers. Building on existing empirical work that suggests that the level of trust that exists between a purchaser and a supplier is fundamental in determining the strength of such a dyadic relationship, we examine how an organization's outsourcing efforts can be influenced by trust, and how perceptions of trust influence buyer retention of outsourcing providers. The resulting causal model suggests that communication, benevolence, and trust are vital to developing and maintaining productive, enduring relationships between purchasers and suppliers.

► We examine how an organization's outsourcing efforts can be influenced by trust.
► We also explore how perceptions of trust influence retention of outsourcing providers.
► Communication, benevolence, and trust were found vital to enduring relationships.