EFFECTS OF OUTSOURCING STRATEGIES ON THE ORGANIZATIONAL PERFORMANCE OF FAST FOODS INDUSTRY IN LAGOS STATE
By
AKINBOLA OLUFEMI AMOS CUGP100234
Presented To
Department of Business Administration and Management
ABSTRACT
Presently, the fast food industry in Nigeria is undergoing very rapid change and explosive
growth and it has been argued that outsourcing strategies adopted have contribution to the
growth of the sector due to its relevance and potentials for the economy. As such, this study
tried to ascertain the significant effects of outsourcing strategies on the organizational
performance of fast food companies in Nigeria as regards cost reduction, customer
relationship and corporate profitability. About 300 questionnaires were administered to 10
selected fast food companies in Lagos state to get primary data that treated appropriate
research questions and three hypotheses were tested accordingly . The study found that
outsourcing so far has positively affected the performance of fast food industry and the
results indicated that the industry has benefited from outsourcing its business process to
reduce cost of operation. Also the study discovered that outsourcing of certain technical
aspects of business that has to do with knowledge and professionalism enhance customers’
relationship. The study recommends that fast food companies should sustain business
relationships that would assists in transaction negotiation with outsourcing vendors to boost
the profitability of firms.
TABLE OF CONTENTS
TITLE PAGE - - - - .. i
CERTIFICATION - - - - . ii
DECLARATION - - - - iii
DEDICATION - - - - .. iv
ACKNOWLEDGMENT - - - - . v
ABSTRACT - - - - .. vi
TABLE OF CONTENTS - - - - vii
LIST OF TABLES - - - - . .. x
CHAPTER ONE: INTRODUCTION
1.0 Background of the Study - - - . 1
1.1 Statement of Problem - - - .. 2
1.2 Objective of Study - - - - - - - - - 4
1.3 Research Questions - - - - .. 4
1.4 Research Hypotheses - - - .. 5
1.5 Significance of the Study - - - - - .. 5
1.6 Methodology of the Study - - - - 6
1.7 Scope of study - - - - 7
1.8 Limitation of the study - - - - - .. 8
1.9 Outline of Chapters - - - - - . 8
1.10 Operationalization of Research Variables - - .. 9
1.11 Definitions of Terms - - - - ..10
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction - - - - - 13
2.1 Conceptual Framework - - - - . 12
2.1.1 The Concept of Outsourcing - - - - .12
2.1.2 Evolution of Outsourcing - - . - - .14
2.1.3 Nature of Outsourcing in Nigeria Fast Foods Industry - - - 15
2.1.4 Types of Outsourcing - - - - .16
2.1.5 Reasons for Outsourcing - - - - - 18
2.1.6 Process of Outsourcing - - - - 19
2.1.7 Benefits of Outsourcing - - - .. 21
2.1.8 Drawbacks of Outsourcing - - - . 24
2.1.9 Outsourcing Principles - - - - .. 27
2.1.10 How Outsourcing Is Organized - - - . 27
2.1.11 Key Requirement for Effective Outsourcing - - 29
2.1.12 Selecting Outsourcing Vendor - - - ..30
2.1.13 Quality of Outsourcing Relationship - - - ..32
2.1.14 Outsourcing Activities and Role of Performance - - ..33
2.1.15 Quality Measures In Outsourcing - - - ..34
2.2 Theoretical Framework - - - - .36
2.2.1 Core Competencies Theory - - - - 36
2.2.2 Transaction Cost Economics - - - - .37
2.2.3 Relational View - - - - - 38
2.2.4 Resource-based View - - - - .
