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Outsourcing Services as a Strategic Tool for Organizational Performance: An Exploratory Study of Nigerian Food, Beverage, and Tobacco Industry
Rajee, Femi Suraju; Akinlabi Babatunde Hamed
Journal of Management Policies and Practices, 1(1), pp. 22-34.

Abstract
Outsourcing is a management strategy by which an organization delegates major or non-core business functions to specialized and efficient service providers. Economic of globalization and liberalization facilitate the process of searching for opportunities on the open global market to outsource some of organization’s activities instead of performing them internally. The paper examines outsourcing service as a strategic tool for organizational performance using data generated from fifteen (15) companies in the Nigeria food, beverage, and tobacco industry, within the period 2000-2010. Statistical methods developed by Rubin (1974) and extended by Janod and Saint Martin (2003). However, the results show that the more an organization outsourced, the higher its organizational growth, and organizational productivity are positively correlated to the amelioration of competitive advantage of labor productivity and average production cost. The paper also revealed that outsourcing is beneficial to organizational performance, and enhances firm’s financial economies and competitive advantage in the market place. Therefore, Organization should develop a comprehensive plan to clarify strategic outsourcing objectives, expectations, and requirements towards their outsourcing function.

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Rajee, Femi Suraju., & Hamed, Babatunde Akinlabi. (2013). Outsourcing Services as a Strategic Tool for Organizational Performance: An Exploratory Study of Nigerian Food, Beverage, and Tobacco Industry. Journal of Management Policies and Practices, 1(1), pp. 22-34.

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Akinlabi Babatunde Hamed is a Lecturer of the School of Transport, Lagos State University, Ojo, Lagos, Nigeria. He is currently the Programme Officer, Department of Accounting, Lagos State University External System at Agege. He has published extensively in both local and international journals in areas such as insurance, micro finance institutions, organization behaviour, motivation, leadership and SMEs.
Contact: +2348023536944
E-mail: [email protected]

 

RAJEE, Femi Suraju is an Associate Lecturer of the Business Administration Department of Lagos State University External System, Ojo, Lagos State, Nigeria. His main research interests are in business policy development, organizational performance, small and medium scale enterprises and strategic management.
Contact: +2348032559122