Developing sustainable outsourcing strategies for facilities management: a study of educational facilities in Hong Kong

Purpose – Strategic-level support is crucial for the smooth adoption of a sustainable facilities management (FM) supply chain. Many firms, regardless of industry, aim for outsourcing success. However, poor performance from outsourced service providers remains a challenge. This study aims to explore the concept of outsourcing relationships in FM and investigates the design of sustainable outsourcing strategies by analyzing five theoretical perspectives: Transaction Cost Economics, Agency Cost Theory, Resource Dependency Theory, Entrepreneurial Action Theory and Social Exchange Theory. Design/methodology/approach – This study utilizes a quantitative approach based on two questionnaire surveys. Data were collected from 38 clients and 34 service providers to evaluate FM outsourcing strategies within educational facilities in Hong Kong. The research examines the effectiveness of outsourcing relationships and sustainability factors in FM service delivery. Findings – The study highlights the impact of FM outsourcing strategies on four commonly outsourced service areas in Hong Kong: building maintenance, security, cleaning and catering. Insights from both clients and service providers reveal that a well-structured outsourcing model can improve performance, enhance sustainability and contribute to economic, social and environmental objectives. The design influencing outsourcing strategies in the four FM contracts relates to the key procedures and business rules concerning the process maturity of agency cost theory from both clients and service providers. Research limitations/implications – The research limitations include size of questionnaire survey, only four main FM outsourcing services, non-financial aspects of the FM outsourcing contracts and single higher tertiary education industry. Originality/value – This paper provides a novel discussion on sustainable outsourcing strategies in FM outsourcing services through a quantitative approach. By integrating multiple theoretical perspectives, the study offers valuable insights into optimizing outsourcing relationships to promote sustainability and long-term success in FM operations. The research limitations include size of questionnaire survey, only four main FM outsourcing services, non-financial aspects of the FM outsourcing contracts and single higher tertiary education industry.