Finding the niche towards performance excellence: a study of facilities management firms in Malaysia

Abstract

Purpose: This paper aims to address the often fragmented approach to performance issues to maximise services quality and returns. With the increased emphasis on corporate reforms, the research presents a model framework as logic to strategy viability and competitive advantage for better outsourcing services delivery and excellence. The global change requires models with logic and variability to practically see the reality and challenges of all times. Design/methodology/approach: Based on comprehensive literature search on performance research, nine influence factors were deduced as models for performance measure. This model is used to evaluate the performance of outsourcing firms in Malaysia. Over 200 questionnaires were sent out to outsourcing services delivery firms in Malaysia by post or personal visits, 68 of them responded. The study applied multivariate analysis to ascertain strategy capability and perception about factors that influence performance in the firms. Findings: The outsourcing strategy performance revealed by the principal component analysis has given the strategy capability of the firms to be above-average, however not in a state to guarantee achievement of sustaining quality and excellence in services delivery. Conversely, to remain at the edge requires strategy that is flexible, integrated and sustainable, which most firms do not have. The results have also shown that more than half of the sampled population opted for a high-performance delivery goal, however, this vision was not supported adequately by a viable strategy. This inflexibility in strategy by most firms gives rise to usurpation and sub-optimality, which failed to take the facilities management (FM) profession beyond the reactive maintenance culture of the past century. Research limitations/implications: This research paper is one of the few strategic models from Malaysia that holistically evaluates performance in outsourcing firms. Practical implications: The paper provides a model that can integrate and sustain the workplace which is a valuable insight to the FM and research world. Originality/value: This study introduced a paradigm using influence factors (timeless practice) to ensure excellency in outsourcing services delivery. Today savvy customers are looking for reliability and quality services with cost certainty, which is partly the reason for the expanding interests on outsourcing. The workplaces require strategic reforms to foster better facilities performance and value.