OUTSOURCING AND ORGANISATIONAL PERFORMANCE OF LISTED CONSUMER GOODS’ FIRMS IN LAGOS STATE
Keywords:
Outsourcing, Organization Performance, Listed Consumer Goods FirmsAbstract
This study examined outsourcing and organization performance of listed consumer goods’ firms in Lagos State, focusing specifically on cost reduction, market expansion, and risk-sharing abilities. To achieve the objective of the study, three hypotheses were formulated and tested at 0.05 level of significant. Employing a correlational research design, data were collected from employees in the procurement or purchasing departments. The population comprised 105 respondents, and a proportionate stratified random sampling technique was utilized. The instrument for data collection comprised of a well-structured questionnaire. Simple linear regression was used to analyze the data collected for the hypotheses using SPSS. The findings revealed that there was a significant relationship between cost reduction, market expansion, and risk-sharing abilities of listed consumer goods’ firms in Lagos State. The findings also revealed that outsourcing contributes positively to organization performance by enhancing cost efficiency, expanding market reach, and improving risk management. Based on these findings, the study recommends that listed consumer goods’ firms in Lagos State should further integrate outsourcing strategies into their operations. This includes identifying core and non-core activities for outsourcing to reduce cost, prioritizing market expansion efforts, enhancing risk management practices and regularly evaluating outsourcing activities to optimize their benefits.
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