Impacts of HR outsourcing on the internationalization of the company: an empirical investigation into vietnamese construction industry

Abstract

Gradually participating in the international construction market, Vietnamese construction companies are under high pressure from the dominating of large foreign contractors. To compete, local firms need to take advantage of their opportunities and efficiency manage their resources to generate competitive advantage. To have an insight into the internationalization process of construction companies and explore how they manage their most valuable resource – human resource, this study empirical examines the relationship between outsourcing HR recruiting and training activities and the speed of the internationalization. Also, firm size is considered as having moderating effect to this relationship. By selecting the mixed method – quantitative survey and qualitative interview, the research questions are clearly answered. A research model is created using 4 hypotheses and 3 variables coming along with appropriate measurement. The research findings suggest that recruiting and training HRO positively impact the speed of the internationalization process but fail to examine the moderating effect of firm size. From the received results, the paper proposes some key recommendation for the managers of Vietnamese construction industry and future researches.