LASU Journal of Employment Relations and Human Resource Management
(LJERHRM)
ISSN: 2705-3482
Volume 1, No. 1, December 2018
Pages 156-166
DOI: 10.36108/ljerhrm/8102.01.0181
IMPACT OF OUTSOURCING ON ORGANIZATIONAL PERFORMANCE OF LISTED FOOD AND BEVERAGES FIRMS IN NIGERIA
ANDOW, Afang Andow (PhD)1, DABO, Zainab (PhD)2, EJEH, Enenche Cletus3
Department of Business Administration, Faculty of Social and Management Sciences, Kaduna State University
andow.helen@kasu.edu.ng1, dabo.zainab@kasu.edu.ng2, ejeh.cletus.e@gmail.com3
Abstract
The study examines the impact of outsourcing on organizational performance of listed food and beverage firms in Nigeria. In spite of the rapid drift in outsourcing, there are limited published sources of literature related to outsourcing in Nigeria, and also previous studies shows contradictory results. The study uses a correlation design, and used secondary data as the main instrument of data collected from the financial statements of the firms contained in the fact-book of the Nigeria Stock Exchange (NSE). The population and sample of the study includes all the eighteen (18) food and beverages firms listed on the floor of the Nigeria stock exchange between2007-2016. Ordinary Lease square (OLS) regression analysis using statistical package for social science (SPSS) was employed to analyze the data and test the hypotheses. The findings reveal that both business process outsourcing and knowledge process outsourcing have a positive and significant impact on organizational performance of listed food and beverage firms in Nigeria. The study concludes that business process outsourcing and knowledge process outsourcing have significantly impacted on the organizational performance which is profitability and competitive advantage of the listed food and beverages firms in Nigeria. The study recommends that the management of these firms should engage in outsourcing strategy in decision making by outsourcing its business processes and knowledge processes in order to increase their profit and achieve performance.
Keywords: Business process, Information technology, Knowledge process, Organizational performance, Outsourcing.