The Effects of Relationship Quality, Contract Governance, and Clinical Appropriateness on the Occupational Health Unit Outsourcing Performance
Keywords:
Outsourcing Performance, Occupational Health Unit, Contractual Governance, Relationship Quality, Clinical AppropriatenessAbstract
Outsourcing occupational health services enables companies to focus on their core competence while ensuring regulatory compliance and workforce well-being. However, inefficient contract governance, poor relationship quality, and inadequate clinical standards often lead to service disruptions, financial losses, and reputational risks—undermining long-term sustainability. This study examines how contractual governance (CG), relationship quality (RQ), and clinical appropriateness (CA) influence occupational health unit outsourcing performance (OHUOP) in Indonesia’s industries such as mining, oil & gas, manufacturing. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) on survey data from 84 outsourcing contracts, we find that all three factors significantly enhance OHUOP, with RQ acting as a key mediator.References
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