Examining ‘Perceived Fit’ in Outsourcing Customer Services Abroad

Outsourcing customer services abroad has become an important strategy for multinational firms. The service offshoring research suggests that consumers generally hold a negative response towards outsourcing abroad, but this varies depending on the location of the outsourced services (i.e. the COO effect). One noticeable aspect overlooked in this literature is to whom the service is outsourced, and the subsequent fit between the focal firm and its outsourcing partner. This perspective moves beyond COO effects and looks to the fit between the focal firm/brand and the foreign outsourced partner. In this thesis, the focal construct, namely, the perceived fit is developed and validated by examining the antecedents and consequences of it on responses of consumers. In addition to examination of the direct effects of service outsourcing, this thesis adds to the literature by also examining the mediating effects of customer certainty. Furthermore, this research incorporates two forms of individual-level differences, uncertainty avoidance and individual self-construal, in examining their moderating effects in the context of service outsourcing. Last but not least, in this thesis, two forms of marketing communication strategies, namely, customer-focused and society-focused communications were examined in the effectiveness of enhancing responses of consumers to the service outsourcing. This study concludes the following findings. First, the results concluded that perceived fit comprises three dimensions: cultural similarity between the host country and home country, corporate reputation of the partner, and advanced technology owned by the partner. Further testing also confirmed the mediating role of customer certainty. It is also found that uncertainty avoidance varied across different consumer groups and positively moderated the relationship between customer certainty and perceived value/purchase intentions. Finally, the results show positive main effects of communication strategies on customer certainty and U-shaped moderation effects on the relationship between the fit and customer certainty. The study also found a positive moderation of individual self-construal on the main effects of both types of communication strategies. Theoretical and managerial implications are offered along with directions for future research