Abstract
Research Objective: This study examined the relationship between outsourcing and organizational sustainability of manufacturing firms in Enugu metropolis. In order to achieve the aim of the study, three research questions and three hypotheses guided the study. HR outsourcing and information technology outsourcing were adopted as the dimensions of outsourcing while economic sustainability and environmental sustainability were adopted as the measures of organizational sustainability. The study was anchored on Resource-Based theory.
Methodology: The study adopted a survey method using questionnaires as instruments for data collection. Data was analyzed using Pearson’s Moment correlations with the help of SPSS Social Science package. A sample of one hundred and sixteen (116) employees and managers of the selected manufacturing firms in Enugu metropolis were derived for the study and used for the analysis.
Findings: HR outsourcing has a positive and significant relationship with economic sustainability (r = .664, p<.022).HR outsourcing has a significant and positive relationship with environmental sustainability (r = .679, p<..006). Information technology outsourcing has a significant and positive relationship with economic sustainability (r = ‘.744, p<.000).
Conclusion: outsourcing has a significant positive relationship with organizational performance of manufacturing organizations.
Recommendations: Continuous outsourcing of other services which an organization does not have a competitive advantage over its competitor guarantees organizational sustainability. Integrating outsourcing programmes into the corporate strategy eliminates duplication in resources application and equally ensures the enjoyment of unique competitive capabilities. Finally, successful implementation of an outsourcing strategy not only helps in cutting costs but enhances both economic sustainability and environmental sustainability.
Key words: Outsourcing, Strategic tool, Organizational Sustainability.
References
Adeyemi, O. & Ibrahim, A. (2012). Outsourcing and organisational performance of beverage manufacturing companies in Osun State, Nigeria. The International Journal of Business & Management, 6(11), 43-45.
Asher, M. & Nandy, A. (2007). Demographic complementarities and outsourcing: implications for India. IIMB Management Review, 19(2), 93-102.
Asiamah, Y. (2013). The relationship between outsourcing and organisational sustainability. European Journal of Business and Management, 5(2), 44-56.
Baridam, D. M. (2008). Research methods in administrative sciences.Sherbrooke Associates inPort Harcourt.
Barney, J. B. & Hesterly, W. S. (2010). Strategic management and competitive advantage concepts. Boston: Pearson Education International.
Bennedsen, M. & Schultz, C. (2005). Adaptive contracting: The trial-and-error approach to outsourcing. Economic Theory, 25(1), 35-50.
Corbett, F.M. (2004). The 2001 strategic outsourcing: The outsourcing research council. Michael F. Corbette & Associates.
Costanza, A. Robert, E. & Bernard C. P. (2005). Defining and predicting sustainability. Ecological Economics, 15(1) 193-196.
Dash, A. K. & Das, B. (2018). The balanced scorecard and its application as a strategic decision-making tool. International Review of Business Research Papers, 6(4),457- 466.
Harris. P. (2003). Outsourced learning: A new market emerges. Training and Development, 57(9), 30-38.
Hope, N. & Dadzie, B. C. (2015). Outsourcing strategy and the performance of chevron Nigeria limited. International Journal of Business Management & Research (IJBMR), 5(2), 95-106.
Igwe, T. (2021). Outsourcing decision and firm operational productivity: a study of selected oil companies in port Harcourt, Nigeria. International Journal of Accounting Research, 6(1), 25-35.
Isah, A., Chikwe, G. C. & Joel, A. (2017). Outsourcing as a strategic option to organizational effectiveness: A study of selected micro-finance banks in Southeast Nigeria. Journal of Applied Management Science, 3(2), 92-102.
Irefin, I. A., Olateju, O. I. & Hammed, G. O. (2012). Effect of outsourcing strategy on project success. Transnational Journal of Science and Technology, 2(6), 128-143.
Kabuoh, M. N., Chigbu, I. O. & Abasilim, C. (2014). Outsourcing effects on organisational sustainability in the Nigerian banking industry (a study of fidelity bank PLC.). International Journal of Advanced Studies in Economics and Public Sector Management, 2(1), 86-98.
Okechukwu, E. U. & Okoronkwo, B. O. (2018). Effect of outsourcing on the performance of selected quoted deposit money banks in Enugu state. Journal of Research Development and Management, 4(7), 1-9.