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Author
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Karichi, Tinotenda
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Title
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The Impact Of Outsourcing On Organisation Production Performance In Manufacturing Firms In Zimbabwe. A Case Study Of Delta Beverages.
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Abstract
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Outsourcing has become a common place in today’s businesses and organizations are progressively outsourcing some of their operations in order to focus on the core ones, making outsourcing one of the essential procedures in efficient supply chain management. However, the impact of outsourcing on organizational production performance in manufacturing firms is still underexplored in literature and underestimated in the business world in Zimbabwe. The study’s main objective was to investigate the impact of outsourcing on organization’s production performance in manufacturing firms in Zimbabwe, in a case study of Delta Beverages. To achieve this, the study had four specific objectives, namely: To identify services outsourced by manufacturing industries in Zimbabwe, to find out the drivers of outsourcing in manufacturing industries, to explore the challenges associated with outsourcing in manufacturing industries and to assess the relationship between outsourcing and production performance in manufacturing industries. The researcher employed a mixed (pragmatic) method and a descriptive case study research design to achieve all of these goals. Using the Morgan and Krejcie Model (1970), a sample of 32 people was selected from the management, procurement, and accounting teams at Delta Beverages in Southern, Harare. Four theories—the agency theory, resource-based view, resource dependency theory, and transaction cost economic theory were used to lead the investigation. The study found out that outsourcing has a positive impact on production performance through increased output, better sales, added value, and increased effectiveness and timeliness. The study also found out that functions outsourced by manufacturing companies in Zimbabwe include: IT Services, specialized security services, large-scale printing, big machinery maintenance, and Solar System maintenance. The drivers behind outsourcing by manufacturing companies include the need for quality enhancements, the need to concentrate on key tasks, the pursuit of cost savings, the aim to boost efficiency, and the drive to successfully manage resource constraints. Challenges that constrain manufacturing organizations when they outsource are: security issues due to loss of confidentiality, the loss of control over specific tasks, unanticipated expenses and in some cases subpar performance on specific services. The study recommended that principal and the contracted companies must learn each other’s goals as well as cultural differences and be able to align.
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Date
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June 2023
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Publisher
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BUSE
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Keywords
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Outsourcing
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Organization
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Performance
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Supervisor
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N/A
Karichi, Tinotenda.pdf