The Impact of Cost- driven Strategic Outsourcing on the Organizational Performance of Manufacturing Companies in Nigeria

Abstract

The pivotal roles of the manufacturing sector in economic growth and sustainable development in both developed and developing countries have been documented in the literature. However, the highly competitive environment along with customers' demands for tailored products and services, has forced manufacturing companies, especially in Nigeria to experience slow growth. This study, therefore, seeks to determine the impact of cost drive outsourcing strategy on the organizational performance of manufacturing companies in Nigeria. The questionnaires were administered among the one hundred and twenty (120) management staff members of the sixty selected manufacturing companies in Nigeria through a purposive sampling method, and this was done personally by the researcher. Linear regression was used to analyzed and interpret the data used in this research. The study reveals that cost-driven is a major strategy that helps an organization in achieving its stated objectives in the global competitive environment. The findings further show that cost-driven has a significant impact on the organizational performance of the manufacturing sector in Nigeria.  Based on the findings, the study therefore, recommends that the management of manufacturing companies should adopt strategic and well thought out outsourcing partnerships in order to continuously reduce operating costs for growth.