OUTSOURCING AND TRUST TOWARDS USERS' SATISFACTION THROUGH THE COMPANY'S PERFORMANCES IN PUTRA MENTARI INCORPORATION

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OUTSOURCING AND TRUST TOWARDS USERS' SATISFACTION THROUGH THE COMPANY'S PERFORMANCES IN PUTRA

MENTARI INCORPORATION

Eldining Wahyu Finarsih

Master of Management, Faculty of Economics and Business, Universitas Brawijaya, Indonesia

Margono Setiawan Ubud Salim

Faculty of Economics and Business, Universitas Brawijaya, Indonesia

Abstract: This research was conducted on how the company's performance affected the company's satisfaction. The purpose of this study is to determine whether outsourcing and trust affect user company satisfaction through company performance as a mediation, whether it has a significant effect or not.

The method used for this research was descriptive quantitative. The data were collected by spreading close questionnaires to Gracia Optima Incorporation Inc. and Bintang Prima Kemasindo Inc. as the clients of Putra Mentari Inc., an outsourcing company. In this study, PT Gracia Optima Masterpro and PT Bin- tang Prima Kemasindo are the populations, and samples were taken from 33 samples from both companies. This study used a saturated sampling technique using all the leaders and staff in both companies. The result showed that trust and good outsourcing given by Putra Mentari Inc. were the keys to getting the clients' satisfaction. It is hoped that the next research can break down the outsourcing variables and package them in more detail and specifically related to the work contract.Trust is one of the most influencing factors that outsourcing companies must maintain to keep the cooperation running for such a long period. It is also supported by good performance. This research could also function as a new insight into future research about the theories, trust, satisfaction, and performance in outsourcing practices.

Keywords: Outsourcing, Satisfaction, Trust, Performance

CITATION

I N D E X E D I N

D O A J - D i r e c t o r y o f O p e n A c c e s s J o u r n a l s

A C I - A S E A N C i t a t i o n I n d e x S I N T A - S c i e n c e a n d T e c h n o l o g y I n d e x

D i m e n s i o n s G o o g l e S c h o l a r R e s e a c h G a t e G a r u d a

I P I - I n d o n e s i a n P u b l i c a t i o n I n d e x

I n d o n e s i a n O N E S e a r c h

C O R R ES P O N D I N G A U T H O R

E l d i n i n g W a h y u F i n a r s i h F a c u l t y o f E c o n o m i c s a n d B u s i n e s s ,

U n i v e r s i t a s B r a w i j a y a , I n d o n e s i a

E M A I L

e l d i n i n g . f i n a r s i h @ g m a i l . c o m

OPEN ACCESS

e I S S N 2 3 0 2 - 6 3 32 p I S S N 1 6 9 3 - 5 2 41

Finarsih, E. W., Setiawan, M., and Salim, U. 2023. Outsourcing and Trust towards Users' Satisfac- tion through the Company's Performances in Putra Mentari Incorporation. Jurnal Aplikasi Mana- jemen, Volume 21, Issue 1, Pages 205-215. DOI: http://dx.doi.org/10.21776/ub.jam.2023.021.1.

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INTRODUCTION

This research raises many issues related to the topic of outsourcing; for example, even though there are clear regulations regarding outsourcing in Indonesia, there is no clear measurement of the performance of an outsourcing company. There is no clear data on trusted or not trusted outsourcing companies, so many outsourcing practices in the field are inappropriate and even violate the law.

An example of research by Lilik-Nur (2012) from the Ministry of Religious Affairs of Kudus on "A- nalysis of Outsourcing Employee Welfare in the Perspective of PT Spirit Krida Indonesia Employ- ees" suggested that employees' salaries for having a family are not suitable. There are still salary de- ductions by outsourcing companies that shouldn't be done. This problem is one of the mistakes made by outsourcing companies due to the absence of a precise measurement of the performance of outsourcing company in Indonesia. The phenomenon that makes outsourcing interesting to study is the desire to find facts in the field, whether it is following human resource theory or is it in accordance with the phenomena in media coverage and previous research conducted by (Lilik-Nur, 2012), outsourcing is a business practice that employs parties outside the company to perform services and make goods that are initially done by employees and staff of the company itself. Outsourcing is a practice that companies usually carry out as a cost- cutting measure. Constitution number 13 in 2003 about Employment regulates legal entity outsourcing companies are responsible for labor rights. The needs of employers to make the outsourcing company supplies production. The supplier company specifies the wage agreement, and employers cannot prosecute the company where they work. Me- anwhile, the company should conform to the working hours, production targets, rules, etc. The cau- sality between working and output experienced by the workers no longer has a direct relationship.

The workers get paid by the company where they work, even without supplier agencies. If they work through supplier agency, their employer must pay the management fee to the supplier agency as the second employer, and then they can get their wage from the agency. In accordance with the incident in the field, Putra Mentari Inc., as a labor supply company, received the fee management fees from user companies, namely Gracia Inc. and Bintang

Inc., so there was no reduction in wages received by workers. The management fee is used as a wage for labor provider agencies in terms of recruitment, payroll, and maintenance of human resources in the user company so that the company is more effective in running its business.

Outsourcing enhances the firm performance (Awe et al., 2018); when outsourcing functions were studied individually, only IT outsourcing had significant effects on firm performance compared to other forms of outsourcing. It might be attribut- ed to IT outsourcing being less costly to implement in the organization compared with other forms of outsourcing. The research of (Niazi and Hassan, 2017) revealed that trust played a strong mediating relationship between fairness and the organization's performance. The results provide valuable insights for organizations, particularly the software firms of Pakistan, since this study considers factors other than economic gain that may be more important to the employees in improving the performance of the organization. Satisfaction measur- es feeling by comparing the expected result with the product user's actual result (performance). It could be reformulated as follows: if performance lives up to its expectation, then it's satisfactory (Maiti and Bidinger, 1981). The definition of company's performance is a well-performing firm can bring high and long-term profits, which will gene- rateemploymentopportunitiesandimprovethein- come of individuals. Furthermore, firm's financial profitability will enhance its employees' returns, have better production units, and bring products of higher quality for its customers. This process cannot be possible without an outcome measurement.

Therefore, performance measurement is essential for the firm's effective management. It serves as a main provider of the firm's perceptual and organization/control abilities. Performance requires measurement to study and identify the management strategy; to predict future internal and external sit- uations; to monitor state and behavior relative to its aims, and to make decisions in the needed peri- ods. Outsourcing was first recognized as a business strategy in 1989 and became an integral part of the business economy throughout the 1990s.

The practice of outsourcing is controversial in many countries. Opponents argue that it has led to the loss of domestic jobs, particularly in the manufacturing sector. Proponents say it creates incentives

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207 for the businesses and companies to allocate reso-

urces where it is most effective and that outsourcing helps maintain the nature of free market econ- omies on a global scale (Niazi and Hassan, 2017).

AccordingtoNiaziandHassan(2017),companies use outsourcing to cut labor costs, including salaries for personnel, overhead, equipment, and technology. Companies also use outsourcing to dial down and focus on core aspects of the business, releasing less critical operations to outside organizations. On the downside, communication between companies and outside providers can be difficult, and security threats can increase when multiple parties can access sensitive data. In this study, there are eight outsourcing indicators put forward by (Embleton and Wright, 2008), namely cost savings, time-saving, core activity, talent ava- ilability, greater flexibility, greater productivity, accountability, and quality improvement. Then trust has 5 indicators, integrity, competence and ability, consistency, loyalty, openness, and transparency. According to Noor (2019), company performance is the description of the achievement level in completing the task and realizing the company's goals, objectives, mission, and vision. There are four performance indicators: economic, efficient, effective,andconformitytojustice.Thehighestin- dicator was conformity to justice, including wage transparencyandnowagereduction.Usersatisfac- tion has three indicators chosen, namely the suitability of expectations, interest in reuse, and willingness to recommend, and from these three indicators, nine items appear for the questionnaire Hu- man resource quality over the expectation, Human resource performance over the expectation, facility from corporation over the expectation, repurchase by the hospitality, repurchase by value, Repur- chase by Facility, Willingness to recommend be- causeofhospitality,Willingnesstorecommendbe- cause of human resource and facility, Willingness to recommend because of value.

The gap of this study is that the outsourcing variable on satisfaction affects the influence carried out by Gainey andKlass(2003)butisnotsigni- ficantSong(2013). There is also an inconsistency in the results of Wu (2013), which produces significant results, while McEvily et al. (2003) have in- significant results. Due to the inconsistency of these results, the researcher added a mediating variable, namely performance. Thisresearchhasanin-

terestingconcept.Previous studies discussed how customer satisfaction is used as a variable to measure performance. In contrast, in this research, it is reversed, namely, how performance affects user company satisfaction because the research was conducted on companies that use outsourcing services. Hence, performance becomes outsourcing companyexcellence that can be measured to determine the level of satisfaction of the company user. A good company should manage its resources effectively, including human resources, which makes many outsourcing companies develop fully nowadays. Outsourcing companies as external resources suppliers are expected to reduce company expenses and increase the effectiveness of the business core. Users mainly expect satisfaction only that they can get from the company as the supplier.

Świtała et al. (2019) stated that performances and services strongly relate to customer satisfaction in the logistics outsourcing industry. This research followed a theory that satisfaction is the feeling of pleasure or disappointment felt by someone after comparing the result thought with what he expected. If the performance does not meet expectations, the customers will not be satisfied. Otherwise, the customers are satisfied if the result mee st the expectation. It is the reason why the researcher put performance as the mediating variable.

This research was conducted to determine whether what happened in the actual practice was in accordance with the theory of human resources or if it was just because of the media that blew it up, as the previous research conducted (Lilik-Nur, 2012). Many conventional outsourcing companies implement cooperation by the contract in the ad- ministration, chauffeur, security, and production.

This research investigated how outsourcing affected the company user satisfaction. The benefits of the Human Resource Management science are ad- ditional knowledge about the latest Human Re- source Management system in the case of outsourcing. And can find out the actual conditions in the field and can apply and develop the knowledge they have to be applied in the field, benefits for academics are the latest reference for conducting further research on recruitment, Human Resource Management systems, and others. The benefit for the community is to know the right outsourcing so as not to cause opinion and sentiment to the outsourcing. Benefits for companies providing outso-

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urcing services, namely Putra Mentari Inc, can be used as reference and evaluation materials related to systems that are not following the principles of Human Resource Management and their suitability with the needs of companies using outsourcing

services. The purpose of this study is to determine whether outsourcing and trust affect user company satisfaction through the company performance as a mediation, whether it has a significant effect or not.

HYPOTHESIS DEVELOPMENT

Figure 1. Conceptual Framework

Perceived Ease of Use and Perceived Usefulness Perceived Ease of Use (PEU) explained the degree to which users believe that adopting an information system requires minimal knowledge, period, or effort (Chong, 2013). Davis (1989) asserted that perceived ease of use has an impact on perceived usefulness, which in turn affects intent.

In relation to mobile devices, the significance of Perceived Ease of Use (PEU) is exemplified further because certain limitations usually limit devices. Tan et al. (2014) confirmed that consumers' willingness to apply m-payments influences perceived usability. When consumers view actions like making purchases on shopping sites as being very simple, they are more willing to accept other technology during their online transactions, according to mobile advertising. The hypothesis can be for- mulated as follows:

H1 : Perceived Ease of Use has a positive effect on Perceived Usefulness

Perceived Ease of Use and Intention to Use In this study, behavioral intention is influ- enced by perceived usability. According to Davis et al. (1989), the extent to which someone believes utilizing a particular system would be simple. As a direct predictor of behavioral intention, perceived ease of use significantly influences perceived

ease of use, based on research on acceptance and deployment of technologies. Davis et al. (1989) noticed a substantial association between it and perceived ease of application, which was later empirically confirmed by numerous academics, including(Wuetal.,2007),(TaylorandTodd,1995), (Mathieson, 1991).

H2 : Perceived Ease of Use has a positive effect on the Intention to Use

Perceived Risk and Intention to Use

Related to how the user perceives the uncertainty or safety risk they might experience when utilizing a new technology. (Nepomuceno et al., 2014). In this research, we identify perceived risk as a potential privacy risk that could arise during the collection of BTA data, such as unintentional exposure or theft of private user information. Stu- dies in many domains have verified the significance of perceived risk in determining usage intention. Research related to the perceived risk in the fi- eldofeducationconductedonhighschoolstudents (Sarosa, 2022), in the field of transportation (Jain et al., 2021), in the tourism industry (Rahmafitria et al., 2021), (Nazir et al., 2021). Therefore, the hypothesis can be written down as follows:

H3 : Perceived Risk has a positive on Intention to Use

OUTSOURCING (X1)

COMPANY USER SATISFACTION (Y) COMPANY’S

PERFORMANCE (Z)

TRUST (X2)

H1 H2

H3

H4

H5 H7

H6

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209 Perceived Usefulness and Intention to Use

Perceived Usefulness reflects the extent to which the adoption of information systems will increase performance (Davis, 1989). The notion that utilizing the updated IS boosts efficiency and time savings are described by the perceived usefulness.

VenkateshandDavis(2000)statedthatthepercep- tion of use directly affects user intent and is essential for technological acceptance. A study by Yan et al. (2021) revealed that Perceived Usefulness significantly impacts users' behavioral intention toward the mobile business of QR codes. Tan and Ooi's (2018) benefits were discovered to consider- ably impact consumers' intentions to use mobile social media advertising. However, the following formulation of the hypothesis is possible:

H4 : Perceived Usefulness has a positive effect on Intention to Use

Intention to Use and Usage Behavior

The likelihood of a user accepting a new information system depends on various criteria. Lin and Kim (2016) revealed that Perceived Useful- ness and Perceived Ease of Use are essential in determining consumer intentions to adopt mobile advertising. Product ratings are a crucial feature that greatlyinfluencespotentialcustomers'onlinesho- pping behavior in addition to perceived usefulness and perceived ease of use (Elwalda and Lu, 2016).

Therefore, thehypothesiscanbeformulatedasfol- lows:

H5 : Intention to Use has a positive effect on Usage Behavior

The Mediation Role of Perceived Usefulness Beliefs will influence views about behavioral intentions about perceived usefulness and simplicity of usage. Perceived usefulness is defined by Davis (1989) as how much individuals believe that employing a specific system will rectify business performance. Perceived ease of use refers to how much a person believes that using a particular system necessitates making an effort to compre- hend the system as whole (Venkatesh et al., 2003).

Perceived behavioral intention is significantly in- fluenced by perceived usefulness and perceived ease of use, according to studies on the technology acceptance and adoption, which are supported by the Technology Acceptance Model (Davis, 1989), (Davis et al., 1989), (Venkatesh and Davis, 2000).

Davis (1989) examined that perceived ease of use and perceived usefulness are significant relation- shipsbetweenthem,whichwaslaterprovenbydif- ferent researchers empirically (Wu et al., 2007), (Taylor and Todd, 1995) and (Mathieson, 1991).

That is in line with the theory of the Technology Acceptance Model, Theory of Reason Action, and Theory of Planned Behavior; hopeful outcome beliefs about positive attitudes toward technology acceptance tend to affect behavioral intentions to use technology positively.

H6 : Perceived usefulness can mediate the effect of Perceived Ease of Use and Intention to Use The Mediation Role of the Intention to Use

Lin and Kim (2016) found that perceptions of usefulness and simplicity influence people's use of technology. Chatterjee et al. (2021) asserted that the technology acceptance model is the most generally used model for predicting intents and behavior when adopting technology. Previous research has confirmed that perceived usefulness (PU) and ease of use influence technology adoption. According to Bauer (2001), the belief that any action will have effects that cannot be foreseen with near certainty, some of which may be unpleas- ant, is known as perceived risk. Perceived risk refers to the user's perception of uncertainty or security hazard they will experience if they use new technology (Nepomuceno et al., 2014). Perceived usefulness, ease of use, and perception of risk of technology can influence the intention to use technology and have an impact on behavior using technology.

H7 : Intention to use can mediate the effect of Per- ceived Ease of Use on Usage behavior H8 : Intention to use can mediate the effect of per-

ceived risk on usage behavior

H9 : Intention to use can mediate the effect of Per- ceived usefulness on usage behavior

METHOD

The research approach taken in this study wasdescriptivequantitativetoexplaintheresearch result in the form of numbers and statistical data.

Meanwhile, the research populations were two clients of Putra Mentari Inc. as the supplier company, Gracia Optima Incorporation (Inc.) and Bintang Prima Kemasindo. Inc as the clients. Those companies are located in Malang. Thirty-three samples

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were taken from the manager and the staff by spreading close questionnaires given to the HRD man-

agers of Gracia Optima Incorporation (Inc.) and Bintang Prima Kemasindo. Inc.

Tabel 1. Construk dan Indikator

Variable Item Correlation

Coefficient Statement Variable Item Correlation

Coefficient Statement Outsourcing X1.1 0.670 Valid Company

Performances Z1 0.807 Valid

X1.2 0.651 Valid Z2 0.791 Valid

X1.3 0.698 Valid Z3 0.784 Valid

X1.4 0.802 Valid Z4 0.789 Valid

X1.5 0.672 Valid Company Users

Satisfaction Y1 0.773 Valid

X1.6 0.636 Valid Y2 0.767 Valid

X1.7 0.736 Valid Y3 0.653 Valid

X1.8 0.595 Valid Y4 0.756 Valid

Trust X2.1 0.778 Valid Y5 0.652 Valid

X2.2 0.648 Valid Y6 0.686 Valid

X2.3 0.715 Valid Y7 0.620 Valid

X2.4 0.763 Valid Y8 0.746 Valid

X2.5 0.748 Valid Y9 0.749 Valid

The information code of X1.1-X1.8 is cost savings, time-saving, core activity, talent availabi- lity, greater flexibility, greater productivity, accountability,andqualityimprovement.Thenthetrust (X2.1-X2.5)5indicators,integrity,competenceand ability, consistency, loyalty, openness, and transparency. Company performance is (Z1-Z4); there are four performance indicators: economic, efficient, effective, and conformity to justice. The highest indicator was conformity to justice, including wagetransparencyandnowagereduction.Usersa- tisfaction (Y1-Y9) has nine indicators that appear for the questionnaire human resource quality over the expectation, human resource performance over the expectation, facility from corporation over the expectation, repurchase by the hospitality, repurchase by value, repurchase by facility, willingness to recommend because of hospitality, willingness to recommend because of human resource and facility, willingness to recommend because of value.

The variables used in this research were 'outsourcing' (8 statements/questions: X1.1 - X1.8) and 'trust' (5 statements/questions: X2.1 - X1.2) as the independent variable; 'company users' satisfaction'

(9 statements/questions: Y1 - Y9) as the depend- ent variable; and company performances (4 statements/questions: Z1 - Z4) as intervening variable.

Meanwhile, this research used the Likert scale. T- he validity instrument used was the Pearson Prod- uct Moment correlation formula. The research period was carried out throughout 2020 for approxi- mately six months in both companies at the same time. Furthermore, the reliability testing for the q- uestionnaires used was the Alpha Cronbach method (Sugiyono, 2015) and the reliability instru- ments, which stated that a variable is reliable if the value of Cronbach Alpha> 0.60.

Table 2 Cronbach's Alpha

Variable (s) Cronbach's Alpha Statement

Outsourcing 0.837 Reliable

Trust 0.783 Reliable

Company's Criteria 0.802 Reliable Company User

Satisfaction 0.876 Reliable

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211 RESULTS

Descriptionsofthecharacteristicsoftheres- pondents in this study include gender and age. The sample used in this study was 33 people consisting of managers and staff, both from the Gracia Opti- ma Incorporation (Inc.) (20 respondents) and from Bintang Prima Kemasindo. Inc (13 respondents).

All respondents are domiciled in Malang and have worked for at least three years in the company. All theexogenousvariablesshowedaVIFvalueofless than ten and tolerance value greater than 0.1. That means that the path model of the equation did not show multicollinear symptoms. The normality assumption using Kolmogorov-Smirnov testing showed that the residuals generated by the two models were normally distributed. The heteroscedasticity assumption test showed that the probability of all equations (company performances and customer satisfaction) > level of significant (α = 5%). It me- anstheresidualshadahomogeneousvariety.Thus, the heteroscedasticity assumption was fulfilled for all equations. From all respondents' answers, most respondents answered on a scale of 5 for questions or statements from the questionnaire given. The outsourcing variable had a dominant influence on

company user satisfaction, which a total performance score was 2.553. Moreover, outsourcing had the most influence on the company user satisfaction after being mediated by company performance.

Table 3. Characteristics of Respondents by Gender

Gender Frequency Percentage

Laki-laki 23 70%

Perempuan 10 30%

Total 33 100%

Table 4. Characteristics of Respondents by Age

Respondent Age Frequency Percentage

18-30 years old 20 61%

31-40 years old 10 30%

41-50 years old 3 9%

Total 33 100%

Figure 2. Path Diagram OUTSOURCING (X1)

COMPANY USER SATISFACTION

(Y) COMPANY’S

PERFORMANCE (Z)

TRUST (X2)

=0.819

v = 0.000

=0.892

v = 0.000

=0.847

v = 0.000

=0.779

v = 0.000

=0.869

v = 0.000

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Table 5. Hypothesis Testing

Table 5 above showed that all existing hy- potheses (H1) for this study are accepted, and all (H0) are rejected. The test results indicate that the probability <alpha (5%). That means that the variable has a significant effect. The path coefficient indicates that all variables have a positive effect, which means all variables have a significant positive effect.

DISCUSSION

Outsourcing and Company's Performances Agburu et al. (2017) found that outsourcing back office activities (such as bookkeeping, payroll, billing, order processing, payment processing, cleaning services, security services, and other ad- ministrative activities), outsourcing of primary activities (such as manufacturing, purchases, ware- housing, Salesforce and customer service), outsourcing of Supporting activities (such as shipping, IT services/system, training, advertising, legal services, transport services, public relations) has a significant effect on organizational profitability of SMEs. At the same time, outsourcing accounting activities (such as financial reporting and tax processing) has no significant effect on the performance of SMEs. According to the descriptive result, the highest outsourcing variable was the cost which was more than half of the sample answered that the most influential thing in outsourcing is cost.

That means after using outsourcing services, the

company could reduce the expenses significantly.

This data was also taken by conducting the interview, speaking that the company could request the vendor to replace a worker who did not obey the company's rules and broke down the contract agreement. Furthermore, nine items were used for the questionnaires, and the highest average was the suitability of expectation. That was in accordance with the interview saying that the longer years of service an employee did, the less chance employee rotations happen. That proved that the company had recruited employees based on their capabiliti- es and interests.

Outsourcing and User's Satisfaction

The result of this research showed the significant influence of outsourcing on company user satisfaction in a positive way that was supported by research that explains that firms can make business processes more amenable to outsourcing and facilitate monitoring of vendor performance and effective coordination with vendors. More interes- tingly, we find that this interactive effect is fully mediated by deliverable quality, which, in turn, directly increases ITO customer satisfaction (Wang and Wang, 2020). An outsourcing company has been considered a good company by the clients, so they were willing to cooperate for a long-term period expecting that they would be more satisfied by the excellent performance of the outsourcing Hypothesis Exogenous Mediation Endogenous Coefficient t Statistics Prob. Result

1 Outsourcing Company's

Performance

0.819 7.940 0.000 Sig

2 Outsourcing User's

satisfaction

0.892 10.964 0.000 Sig

3 Outsourcing Company's

Performance

User's satisfaction

0.356 2.773 0.000 Sig

4 Company's

Performance

User's satisfaction

0.847 8.888 0.000 Sig

5 Trust Company's

Performance

0.779 6.909 0.000 Sig

6 Trust User's

satisfaction

0.869 9.787 0.000 Sig

7 Trust Company's

Performance

User's satisfaction

0.434 3.608 0.000 Sig

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213 company. Satisfaction is an assessment of the cha-

racteristics or features of a product or service or the product itself, which provides a level of consumer pleasure related to meeting consumer con- sumption needs. There were three indicators and nine items of satisfaction in this research. Accord- ing to the reality that happened in the company, conformity to justice was the highest indicator for the satisfaction variable. Meanwhile, performance item was the highest indicator of company users' expectation. The result showed a significant positive effect on company performance and user satisfaction which later became the variable that had the most dominant effect. The outsourcing services made the company more economical and efficient and implemented conformity to justice, so the clients constantly renewed new contracts with the outsourcing company. Trust is a positive expectation that others will not be opportunistic through words, actions, or decisions. Opportunistic refers to the inherent risks and vulnerabilities in trust-based relationships. There are 5 trust indicators: integrity, competence and capability, consistency, loyalty, and transparency. The highest indicator was integrity reached the highest point. It meant that Putra Mentari Inc. had good integrity during coop- erating with the clients. According to interviews, the company never committed fraud related to wages, fees, andemployeeabsences. Thus, thecomp- any would improve its performance by implemen- ting conformity to justice.

Company’s Performance and User’s Satisfac- tion

Świtała et al. (2019) confirmed the strong relationshipbetweenserviceperformanceandcus- tomer satisfaction in the outsourcing logistics industry in Poland. Satisfaction of consumer orders regarding the characteristics or features of the product or service or the product itself provides a level of consumer satisfaction related to meeting consumer needs. In this study, there are 3 indicators, and there are 9 satisfaction items listed above (Św- itala et al., 2019). Following the conditions in the field, performance in accordance with the principle of fairness is the highest indicator. The satisfaction variable's highest indicator is on items that ex- ceed user expectations. Research shows that good company performance will give satisfaction to the user company, which means the better the compa-

ny's performance will increase the satisfaction of the user company, being the variable with the most dominant influence. This result is supported by the conditions in the field and the company, the results of interviews with user leaders, that outsourcing servicesmakecompaniesmoreeconomicalandef- ficient and apply a fairness system, namely the suitability of cooperation in contracts with its application in the field so that users continue to extend the contracts with outsourcing companies remains high.

Trust and Company's Performance

Previousstudiesfoundthattrustisvitalcom- ponent in mediating the organizational justice con- nections and the organizational performance (Ni- azi and Hassan, 2017). Another finds that outsourcing improves company performance when study- ing outsourcing individually and only IT outsourcing significantly impacts company performance compared to other forms of outsourcing (Awe et al., 2018). This research showed that Putra Men- tari Inc. was very loyal and showed openness and transparency to company users, so it gained high client trust. In the end, the two companies reached their vision and missions.

Trust and User's Satisfaction

The highest indicator of the trust variable was integrity which could lift the company user satisfaction. It was proved by running the cooperation successfully over a long-term period. More- over, according to the interview, the owner of Gra- ciaOptimaInc.statedthatonceanoutsourcingven- dorofferedacheaperfee,herejectedtheoffersim- ply because his company wanted to continue coo- peratingwithPutraMentariInc.Accordingtohim, Putra Mentari Inc. is a trustworthy company. That showed that the integrity that Putra Mentari Inc.

upheld affected the satisfaction of company users.

The research showed a significant effect and positive relation to company user satisfaction. The higher the trust is given, the higher satisfaction the company will give (Gainey and Klass, 2003). The trust positively correlates with customer satisfaction in online shopping (Wu, 2013). Long Wu also mentioned that trust is essential to attract customer satisfaction and complaint intention. Putra Menta- ri Inc. provides loyalty, information transparency, integrity, and consistency to Gracia Optima Incor-

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poration (Inc.) and Bintang Prima Kemasindo. Inc made them satisfied. It ended up with the willingness of the two companies to recommend Putra Mentari Inc. to other companies.

There was a significant effect of trust on the company user satisfaction through company performance.AccordingtoMcEvilyetal.(2003),trust cannot be valued in an absolute way, so there must be disadvantages and advantages caused by trust inanorganization.Toconductfurtherresearch, the researcher added the performance mediation variable to strengthen the effect of trust on user satisfaction. The trust indicators consisted of loyalty, informationtransparency, integrity, andconsisten- cy provided by Putra MentariInc.Moreover,Putra MentariInc.alsocarried out the principles of justice, effectiveness, and efficiency. Those indicators and principles were the keys to Putra Mentari Inc.

gaining user satisfaction. Furthermore, the result showed a significant positive effect between trust and user satisfaction through the company's performance. The theoretical implication of this research was strengthening the concepts proposed explained a significant positive effect related to the enhancement of outsourcing toward the company user satisfaction and company performance (Gain- ey and Klass, 2003). There was a positive relation between the contract specifications and outsourcing related to client satisfaction, and a positive and significant relationship was found between social- oriented trust level and outsourcing satisfaction.

IMPICATIONS

The theoretical implication of this research is to strengthen the observation already conducted by (Bolat and Yılmaz, 2009) regarding the positive effects of outsourcing on satisfaction. If outsourcing is bad and there is no trust, it will cause a decline in client satisfaction. According to research conducted (Wang and Wang, 2020), the effectiveness of coordination determines client satisfaction with vendors and vendor performance. Ac- cording to this research, the performance of Putra Mentari Inc. becomes mediation variable. The pra- ctical implications are explained by the results of the study, which show that the performance of Pu- tra Mentari Inc. is good and leads to long-term cooperation of more than eight years. This research could also function as a new insight into future research aboutthe theories, trust, satisfaction, and

performance in outsourcing practices.

RECOMMENDATIONS

This research limitation is that only one outsourcing company was analyzed. The complexity of analyzing service users or client companies will increase proportionally to the number of outsourcing companies reviewed. One suggestion for future observations is to secure repeated access to the company owners in the immediate area, so that research questionnaires could be processed effectively.

The next research from legal communities canbreakdowntheoutsourcingvariablesandclas- sify them in more detail and, more specifically, related to working contracts. Trust is one of the most influencing factors that the outsourcing companies must maintain to keep the cooperation running for suchalongperiod.Itisalsosupportedbygoodper- formance.

CONCLUSIONS

Better outsourcing can improve the performance of the company as well as improve the satisfaction of clients. Company performances do not determine satisfaction, yet good outsourcing user leads to user satisfaction by bringing up the company's performance using partial mediation. Trust increases satisfaction mediated by performance u- sing partial mediation. Trust and good performance are two things that make Putra Mentari Inc. get company user satisfaction.

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