OUTSOURCING STRATEGY AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
The study established the influence of outsourcing strategy on the performance of manufacturing firms in Kenya. The study further established the moderating effect of organizational culture on the relationship between outsourcing strategy and performance of large manufacturing firms in Kenya. This study was informed by transaction cost theory and human relations theory. Positivism research philosophy and a descriptive research design were adopted while 708 large manufacturing firms in Kenya registered under the Kenya Association of Manufacturers as at 2017 were targeted. The sample size for the study was 249 firms selected randomly from all the 14 sectors of the manufacturing industry in Kenya. The data collection instrument was a questionnaire, while mean, frequencies and percentages were used to describe the data. Correlation and regression inferential statistics were employed to show the direction, magnitude and significance of the association between turnaround strategies and performance of large manufacturing firms in Kenya. Data presentation was done through charts, figures and tables. The study established that outsourcing strategy has a significant and positive influence on the performance of large manufacturing firms in Kenya. The findings further revealed that organizational culture has significant moderating effect on the relationship between turnaround strategies and performance of large manufacturing companies. The study concluded that outsourcing strategy with culture as the moderating variable positively influences the performance of large manufacturing companies. It was therefore recommended that the management of large manufacturing firms uphold the outsourcing strategy as a way of enhancing the performance of the firms.
Keywords: Outsourcing strategy, organizational culture, turnaround strategies, firm performance, manufacturing firms
CITATION: Kithinji, J., Rotich, G., & Kihara, A. (2022). Outsourcing strategy and performance of large manufacturing firms in Kenya. The Strategic Journal of Business & Change Management, 9 (3), 232-246.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i3.2363
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