EFFECTS OF OUTSOURCING STRATEGIES ON THE ORGANIZATIONAL PERFORMANCE OF FAST FOODS INDUSTRY

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EFFECTS OF OUTSOURCING STRATEGIES ON THE ORGANIZATIONAL PERFORMANCE OF FAST FOODS INDUSTRY

 

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

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