Abstract
Guided by the Transaction Cost Theory and the Resource Base Views, the study proposed a framework on hotel outsourcing decisions and empirically tested it. Data were collected using a survey from 240 supervisory and management level hotel employees in China who've dealt with outsourcing. The study found that suppliers' cost-efficiency and specialization contribute to the overall efficiency of hotels, which further enhances the perceived overall service performance of outsourcing suppliers and hotels' long-term commitments with outsourcing suppliers.