The influence of independent contractors on organizational effectiveness: A review

Carol Flinchbaugh,Mortaza Zare,Clint Chadwick,Pingshu Li,S. Essman

Published 2020 in Human Resource Management Review

ABSTRACT

Abstract The use of independent contractors has steadily increased over the past two decades. However, relatively little research has examined contractors' effectiveness and the studies that do often report contradictory findings of contractors' value. The inconsistent findings result from the broad definition of effectiveness employed in these studies, stretched across various types of nonstandard workers (including contract, part-time, seasonal, and temporary work) and both individual- and firm-levels of analysis. Thus, the purpose of this qualitative review is to untangle the empirical findings on contractor effectiveness for both workers and firms. We adapt Meyer, Becker, and Van Dick's (2006) integrative model of situated and deep structure identities to organize current findings on contractor effectiveness in three categories, namely contractor attitudes and behaviors, operational outcomes, and firm financial outcomes. Our effectiveness model further highlights how select identity-relevant social influences and situational contingencies impact contractor effectiveness. We conclude with research and practical implications of the model of contractor effectiveness.

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