Outsourcing and Organizational Performance of Selected Manufacturing Firms in Enugu State, Nigeria

ABSTRACT This study examined the effect of outsourcing on the organizational performance of selected manufacturing firms in Enugu State, Nigeria. The objectives of the study were to determine the effect of human resource outsourcing the on-service delivery of selected manufacturing firms, to determine the impact of business process outsourcing on the product quality of the selected manufacturing firms, and to examine the effect of knowledge process outsourcing on the efficiency of the selected manufacturing firms. The study adopted a survey research design. Data were obtained from a primary source through a structured questionnaire. The data were analyzed using the Spearman Rank Order Correlation Coefficient which was found to be high, r = 0.988 showing that there is consistency in the items of the survey. Descriptive and inferential analyses were used to analyze the quantitative data. Simple regression techniques were used in testing the hypotheses. The findings reveal that: Human resource outsourcing had a positive and significant effect on service delivery (r =.0.956, t = 34.019; p < 0.05) of the manufacturing firms in Enugu State, Nigeria. Business process outsourcing positively and significantly affected product quality (r = 0.884; t = 19.876; p < 0.05) of the selected manufacturing firms in Enugu State, Nigeria. Knowledge process outsourcing positively and significantly affected the efficiency (r = 0.908; t = 22.727; p < 0.05) of the manufacturing firms in Enugu State. This study, therefore, recommends that manufacturing firms should fully engage in human resource outsourcing to attract the best experts who can help in achieving organizational goal