Outsourcing and Organizational Performance in Fast-Food Businesses in Benin Metropolis
Article Sidebar
Dimensions.ai Badge
Main Article Content
Abstract
Across sectors and industries, the strategic imperative of outsourcing in supporting organizational performance has been emphasized. In this study we focused on outsourcing and organizational performance in the fast-food businesses in Benin City, Nigeria. Specifically, we explored three dimensions of outsourcing – business process outsourcing (BPO), knowledge process outsourcing (KPO) and information technology outsourcing (ITO) - and their effects on organizational performance. A cross-sectional design was adopted and executed through a survey. In accomplishing the study objectives, the 196 employees of the two selected food organizations, being the entire population of the sampled food organizations, were invited to respond to the research instrument. An appropriately structured 28 item research instrument prepared in a 5-point Likert format was used for data collection to assess the variables investigated. The hypotheses were tested with multiple regression at 5% level of significance. The findings of the study showed that all the three dimensions of outsourcing explored had significant effect on the performance of the sampled fast-food business-es in Benin City Metropolis. Appropriate recommendations in line with the findings of the study were proffered.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Agarwal, R., & Nisa, S. (2009). Knowledge process outsourcing: India’s emergence as a global leader. Asian Social Science, 5(1), 82–92. https://doi.org/10.5539/ass.v5n1p82
Agburu, J. I., Anza, N. C., & Iyortsuun, A. S. (2017). Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs). Journal of Global Entrepreneurship Research, 7(1). https://doi.org/10.1186/s40497-017-0084-0
Akewushola, S., & Elegbede, T. (2013). Outsourcing strategy and organizational performance: Empirical evidence from the Nigeria manufacturing sector. European Scientific Journal, 9(19), 291-299. https://doi.org/10.19044/esj.2013.v9n19p%p
Akinbola, O. A., Ogunnaike, O. O., & Ojo, O. A. (2013). Enterprise outsourcing strategies and marketing performance of fast-food industry in Lagos state, Nigeria. Global Journal of Business, Management and Accounting, 3(1), 22–33.
Awino, Z. B., & Mutua, J. M. (2014). Business process outsourcing strategy and performance of Kenyan state corporations. Journal of Emerging Trends in Economics and Management Sciences, 5(7), 37–43.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bui, Q., Adelakun, O., & Leo, E. (2018). Information technology outsourcing configurations and organizational outcomes. UK Academy for Information Systems Conference Proceedings 2018, 26. https://aisel.aisnet.org/ukais2018/26
Doval, E. (2016). Is outsourcing a strategic tool to enhance the competitive advantage? Review of General Management, 23, 78–87.
Doval, E. (2020). Organizational performance by the process of knowledge creation. Review of General Management, 32(2), 15-28.
Duan, C., Grover, V., & Balakrishnan, N. (Raju). (2009). Business Process Outsourcing: an event study on the nature of processes and firm valuation. European Journal of Information Systems, 18(5), 442–457. https://doi.org/10.1057/ejis.2009.38
Duening, T. N., & Click, R. L. (2005). Essentials of business process outsourcing. John Wiley & Sons.
Ejechi, J. O., & Oshodin, E. A. (2019). Business Process Outsourcing Strategy on Competitive Advantage and Organizational Performance. International Journal of Academic Research in Business and Social Sciences, 9(6), 718–734. DOI: 10.6007/IJARBSS/v9-i6/5987
Garver, M. S., & Mentzer, J. T. (2000). Salesperson logistics expertise: A proposed contingency framework. Journal of Business Logistics, 21(2), 113–131.
Gituma, I. M. (2019). Business process outsourcing and organizational performance of commercial banks in Kenya (Doctoral dissertation, Kenyatta University).
Gunasekaran, A., Irani, Z., Choy, K. L., Filippi, L., & Papadopoulos, T. (2015). Performance Measures and Metrics in Outsourcing Decisions: A Review for Research and Applications. International Journal of Production Economics, 161, 153-166. https://doi.org/10.1016/j.ijpe.2014.12.021
Halvey, J. K., & Melby, B. M. (2007). Business process outsourcing: Process, strategies, and contracts. John Wiley & Sons.
Ihunwo, E., & Ikegwuru, M.-K. (2023). Logistics outsourcing and organizational performance of oil and gas companies in Rivers State. International Journal of Management and Marketing Systems, 13(9), 52–63.
Javed, A., Rafique, A. K., & Muhammad, M. B. T. (2020). Perceived effect of outsourcing on organizational performance in Pakistani construction industry. In Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020). DOI: 10.2991/aebmr.k.201126.113
Kamau, T. (2021). Knowledge management capabilities and organization performance in milling companies: A case of Unga Group Limited (Doctoral dissertation, Kenyatta University).
Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part 1. Accounting Horizons, 15(1), 87–104. https://doi.org/10.2308/acch.2001.15.1.87
Kennedy, J., Holt, D., Ward, M., & Rehg, M. (2002). The influence of outsourcing on job satisfaction and turnover intentions of technical managers. Human Resource Planning, 25(1), 23–31.
Khan, G. M., Khan, S. U., Khan, H. U., & Ilyas, M. (2022). Challenges and practices identification in complex outsourcing relationships: A systematic literature review. PloS one, 17(1), e0262710. https://doi.org/10.1371/journal.pone.0262710
Kivuva, B. M. (2018). Effects of outsourcing on organizational performance of oil marketing companies in Kenya (Doctoral dissertation, KCA University).
Liu, H. C., & Lin, J.-S. (2019). Correlations among knowledge outsourcing, organizational culture, and organizational performance in public sectors. Revista de Cercetare si Interventie Sociala, 67, 88–102. https://doi.org/10.33788/rcis.67.6
Liu, S., & Deng, Z. (2015). Understanding knowledge management capability in business process outsourcing: A cluster analysis. Management Decision, 53(1), 124–138. https://doi.org/10.1108/MD-04-2014-0197
Makau, V. K., & Nyangau, S. (2022). Influence Of Business Process Outsourcing On The Organizational Performance In Selected Local Airline Industries In Kenya. International Journal of Social Sciences Management and Entrepreneurship, 6(1), 15-30. https://www.sagepublishers.com/index.php/ijssme/article/view/105/136
Mtsweni, P., Mokwena, S., & Moeti, M. (2021). The impact of outsourcing information technology services on business operations. South African Journal of Information Management, 23(1). https://doi.org/10.4102/sajim.v23i1.1361
Murphy, L. (2024). The influence of IT outsourcing on organisational success and innovation. Future Business Journal, 10, Article 84. https://doi.org/10.1186/s43093-024-00372-y
Musau, C. N. (2016). The Impact of Strategic Outsourcing on Organizational Performance: A Case Study of Bidco Africa Limited. United States International University-Africa.
Mwagona, M. N., & Kinyua, G. M. (2023). Organizational performance from the perspective of customer experience management: A critical review of literature. International Journal of Education and Research, 11(9), 101–124.
Ndubuisi-Okolo, P. U., & Arinze, P. K. (2022). Outsourcing strategy and performance of money deposit banks in Anambra State, Nigeria. American International Journal of Business Management, 5(4), 1–11. https://www.aijbm.com/outsourcing-strategy-and-performance-of-money-deposit-banks-in-anambra-state-nigeria/
Nunnally, J.C. (1978). Psychometric theory. McGraw-Hill.
Nyameboame, J., & Haddud, A. (2017). Exploring the impact of outsourcing on organizational performance. Journal of Global Operations and Strategic Sourcing, 10(3), 362–387. https://doi.org/10.1108/JGOSS-01-2017-0001
Obikezie, B. N., & Dike, G. N. (2023). Outsourcing Strategies and Organizational Performance in Manufacturing Firms in South-East, Nigeria. International Journal of Business & Law Research, 11(3), 86-102.
Onwuzuruike, O. S., Ofili, D. N., Onodugo, A. C., Udeagbala, O., Okon, U. E., & Okechukwu, E. U. (2022). Effect of outsourcing strategies on the organizational performance of SMEs in Nigeria: An exploratory study of fast food business in Abuja. Advance Journal of Business and Entrepreneurship Development, 6(4). https://aspjournals.org/ajbed/index.php/ajbed/article/view/21
Oshri, I., Kotlarsky, J., & Willcocks, L. (2009). The handbook of global outsourcing and offshoring. Palgrave Macmillan.
Pitt, M., & Tucker, M. (2008). Performance measurement in facilities management: Driving innovation? Property Management, 26(4), 241–254. https://doi.org/10.1108/02637470810894885
Power, M. J., Desouza, K. C., & Bonifaz, C. (2006). The outsourcing handbook: How to implement a successful outsourcing process. Kogan Page.
Russell, R., & Taylor, B. W. (2008). Operations management: Creating value along the supply chain (6th ed.). John Wiley & Sons.
Smadi, Z., & Al-Jawazneh, B. (2016). The benefits of the outsourcing strategy as perceived by the industrial companies in Jordan. Global Journal of Management and Business Research: Administration and Management, 16(A9), 23–34. https://journalofbusiness.org/index.php/GJMBR/article/view/2162
Smith, P., Vozikis, G., & Varaksina, L. (2006). Outsourcing human resource management: A comparison of Russian and U.S. practices. Journal of Labor Research, 27(3), 305–321.
Sreedevi, R., & Tanwar, T. (2018). Outsourcing – A review for research and practical applications. International Journal of Business and Economics Research, 7(1), 20–24. https://doi.org/10.11648/j.ijber.20180701.13
Verhoef, C. (2005). Quantitative aspects of outsourcing deals. Science of Computer Programming, 56(3), 275–313. https://doi.org/10.1016/j.scico.2004.08.003
Wang, L., Gwebu, K., Wang, J., & Zhu, D. (2008). The aftermath of information technology outsourcing: An empirical study of firm performance following outsourcing decisions. Journal of Information Systems, 22(1), 125–159. https://doi.org/10.2308/jis.2008.22.1.125
Waruhiu, H. (2014). Rebalancing the Balanced Scorecard: A sequel to Kaplan and Norton. European Journal of Business and Management, 6(29), 116–124. https://iiste.org/Journals/index.php/EJBM/article/view/16085/16232
Waszkowski, R., Nowicki, T., & Worwa, K. (2018). Corporate efficiency improvement with business process automation. MATEC Web of Conferences, 210, Article 02012. https://doi.org/10.1051/matecconf/201821002012
Yeboah, A. (2013). The relationship between outsourcing and organizational performance. European Journal of Business and Management, 5(2), 1–12. https://www.iiste.org/Journals/index.php/EJBM/article/view/3925/3983