The Impact of Outsourcing on Organizational Performance at Crown Beverages Limited.

ABSTRACT 

The study assessed the impact of outsourcing on organizational performance in beverage Industries using a case study of Crown Beverages Limited. The objectives of this study were limited to: finding out the reasons for outsourcing. analyzing the effects of outsourcing. investigating ways of improving outsourcing in organisations. and to examining the various indicators of effective organizational performance. The researcher used a cross sectional survey design involving both qualitative and quantitative in nature. Primary and secondary sources of data were used and the researcher made use of purposive sampling. A sample size of 32 respondents were used to solicit information using likert scale type questions from the questionnaires and an interview guide. Analysis of findings revealed that focusing on core competency is the reason as to why Crown Beverages Limited adopted the Outsourcing strategy/approach Results further revealed that outsourcing has helped Crown Beverages Limited to save a lot in terms of effort, time. infrastructure and labor costs and this has helped the company to improve on its per~m1ance.. Finally it was seen that level of innovation was seen as the indicator of effective performance at Crown Beverages Limited. The study therefore recommends that the company should ensure that they outsource only fiom competent firms that can help them achieve the desired levels of performance and that proper communication systems be put in place so as to effectively share relevant information with outsourcing firms.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT iv

LISTOFTABLES vU~

ABSTRACT

CHAPTER ONE

1 .0 Introduction

1 .1 Background of the Study

1 .2 Statement of the Problem

I .3 Purpose of the study

1 .4 Specific Objectives of the Study

I .5 Research Questions

1.6 Scope of the Study

1 .6.1 Content Scope 4

1.6.2 Geographical Scope 4

1 .6.3 Time Scope 4

1.7 Significance of the Study 1

1.8 Operational Definition of Key Terms 4

1 .9 Conceptual Framework

CHAPTER TWO 6

LITERATURE REVIEW 6

2.0 Introduction (

2.1 Key Concepts 6

2.1.1 Outsourcing 6

2. 1 .2 Organizational Performance

2.2 Reasons for Outsourcing in Organizations 9

2.3 The effects of outsourcing on organizational performance I

2.4 Ways of improving outsourcing in organizations.15

2.5 The various indicators ofeffective organizational peribrmance 17

CHAPTER ThREE 19

1~4E’I’I4O1)OLOGY I 9

3.0 Introduction 19

3.1 Research Design I 9

32 Study Population 19

32.1 Study Population 19

3.2.2 Sample Size 19

32.3 Sampling Method 19

3.3 Source ofData 20

3.3.1 Primary Data 20

3.32 Secondary Data 20

3.4 Data Collection Instruments 20

3.4.1 Questionnaires 20

3.42 Interview guide 20

3.5 Validity and Reliability 21

3.6 gthical consideration 21

3.7 Pata Processing, Presentation and Analysis Techniques 21

3.8 Limitation ofthe Study 21

CHAPTER POUR 23

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS 23

4.0 introduction 23

4.1 Personal Data and General Characteristics and Respondents 23

42 Reasons tbr Outsourcing in Organizations 25

4.3 Eflbcts ofOutsourcing on Organizational Performance 27

4.4 Ways of Impróving Outsourcing 28

4.5 The Various Indicators of Effective Organizational Performance 30

CHAPTER FIVE 32

SUMMARY CONCLUSIONS, DISCUSSION AND RECOMMENDATIONS 32

5.0 Introduction 32

5.1 Summary Conclusion 32

5.2 Discussion of the Findings 32

5.2.1 Reasons for Outsourcing in Organizations 32

5.2.2 The Effects of Outsou~ing ~n Organizational Performance 33

5.2.3 Ways of Improving Outsourcing 33

5.2.4 The Various.Jndicators of Effective Organizational Performance 33

5.3 Summary of the Findings 34

5.4Recommendations 34

5.5.Areas of Further Reasearch 35

REFERENCES 36

APPENDIX I 39

QUESTIONNAIRE

APPENDIX II 42

INTERVIEW GUIDE 42