Effect of Outsourcing Strategies on Organizational Performance of SMEs: Study of selected Fst Foods Business in Abuja

Abstract

Outsourcing is a management strategy by which an organization delegates major or non-core business functions to specialized and efficient service provider. This paper examines outsourcing service as a strategic tool for organizational performance of small and medium enterprises using data from ten (15) fast food businesses operating in Abuja, Nigeria. Statistical methods developed to test the formulated hypotheses and analyse data collected is the Pearson moment correlation on SPSS version 20. However, the results show that the more an organization outsourced, the higher its organizational performance, and organizational productivity are positively correlated to the amelioration of competitive advantage of labour productivity and average production cost. The paper also revealed that outsourcing is beneficial to organizational performance, and enhances firm’s financial economies and competitive advantage in the market place. Therefore, Organization should develop a comprehensive plan to clarify strategic outsourcing objectives, expectations, and requirements towards their outsourcing function.

Keywords: Small and Medium Enterprises (SMEs), Competitive Advantage, Organizational Performance, Outsourcing Strategy.

1.0 INTRODUCTION

1.1 Statement of Problem 2

1.2 Objective of the Study 3

1.3 Research Hypothesis 3

1.4 Background of the Study 3

2.0 LITERATURE REVIEW

2.1 Conceptual framework of the study 4

2.1.1 The Concept of Business strategies 6

2.1.2 The essence of strategic outsourcing 7

2.1.3 Linking outsourcing to business strategy 8

2.2 Theoretical framework

2.2.1 Outsourcing and organizational Performance 10

2.2.2 Outsourcing, Business Strategies and organizational Performance 11

2.3 Empirical Review 11

3.0 RESEARCH METHODOLOGY

3.1 Research Design 13

3.2 Method of Data Collection 13

3.3 Method of Data Analysis 14

3.4 Data Presentation and Analysis 14

3.5 Discussion of Findings 16

3.6 Conclusion 16

3.7 Recommendations 17

References 18-20

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APA

AZhmdK85c0006e6818216.82926110, 8. (2018). Effect of Outsourcing Strategies on Organizational Performance of SMEs: Study of selected Fst Foods Business in Abuja. Afribary. Retrieved from https://beta.afribary.com/works/effect-of-outsourcing-strategies-on-organizational-performance-of-smes-study-of-selected-fst-foods-business-in-abuja-7546

MLA 8th

AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 "Effect of Outsourcing Strategies on Organizational Performance of SMEs: Study of selected Fst Foods Business in Abuja" Afribary. Afribary, 29 Jan. 2018, https://beta.afribary.com/works/effect-of-outsourcing-strategies-on-organizational-performance-of-smes-study-of-selected-fst-foods-business-in-abuja-7546. Accessed 24 Apr. 2025.

MLA7

AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 . "Effect of Outsourcing Strategies on Organizational Performance of SMEs: Study of selected Fst Foods Business in Abuja". Afribary, Afribary, 29 Jan. 2018. Web. 24 Apr. 2025. < https://beta.afribary.com/works/effect-of-outsourcing-strategies-on-organizational-performance-of-smes-study-of-selected-fst-foods-business-in-abuja-7546 >.

Chicago

AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 . "Effect of Outsourcing Strategies on Organizational Performance of SMEs: Study of selected Fst Foods Business in Abuja" Afribary (2018). Accessed April 24, 2025. https://beta.afribary.com/works/effect-of-outsourcing-strategies-on-organizational-performance-of-smes-study-of-selected-fst-foods-business-in-abuja-7546

Effect of Outsourcing Strategies on Organizational Performance of SMEs: Study of selected Fst Foods Business in Abuja

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