While a considerable amount of research has contributed to our understanding
of the influencing of HR outsourcing on organisational performance, literature
suggests that there is a paucity of research examining the fundamental
mechanisms behind this relationship. Drawing upon strategic human resource
management model as well as organisational learning theory, this study
examined the mediating role of organisational learning in the relationship
between HR outsourcing on organisational performance among 171
manufacturing firms in the Kingdom of Saudi Arabia. Using SPSS Macro for
Simple Mediation, we found a significant positive relationship between HR
outsourcing on organisational performance. As expected, organisational
learning theory was found to mediate the relationship between HR outsourcing
and organisational performance. Implications of the study in the Saudi Arabian
context have been discussed.
