Outsourcing Strategy as a Viable Determinant of Organizational Performance: Evidence from Telecommunication Companies in Nigeria

The study aimed to determine how outsourcing core functions influence performance in relation to cost reduction, risk reduction, quality improvement and organizational efficiency of selected companies in the Nigeria telecommunications sector. Descriptive research design was adopted for the study, and census survey was used in determining the population made up 88 management and technical staff that are involved in outsourcing decisions and implementation. Structured questionnaires was used for data collection, and SPSS tool was used to quantitatively analyze the   data   using regression analysis to establish the relationship between outsourcing core functions, and performance of the organizations looking at cost reduction, risk reduction, quality improvement and organizational efficiency. The outcome indicated a strong positive relationship between Cost reduction and performance, weak positive relationship between Quality improvement, Organizational efficiency and performance, and a moderate positive relationship between Risk Reduction and performance The study therefore recommends that companies should concentrate on their core functions for competitive advantage and sustainability, and outsource non-core functions to free resources for value optimization, Firms should monitor outsourcing contracts for better performance, and conduct situational analysis before taking outsourcing decisions irrespective of whether they are core or non-core functions for efficiency and value optimization. Keywords: Core functions, Cost Reduction Non- core functions, Outsourcing, Performance. DOI: 10.7176/EJBM/12-2-11 Publication date: January 31st 2020

Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data

This paper ties together the macroeconomic and microeconomic evidence on the competitiveness of African manufacturing sectors. The conceptual framework is based on the newer theories that see the evolution of comparative advantage as influenced by the business climate -- a key public good -- and by external economies between clusters of firms entering in related sectors. Macroeconomic data from purchasing power parity (PPP), though imprecisely measured, estimates confirms that Africa is high-cost relative to its levels of income and productivity. This finding is compared with firm-level evidence from surveys undertaken for Investment Climate Assessments in 2000-2004. These confirm a pattern of generally low productivity, and also suggest the importance of high indirect costs and business-environment-related losses in depressing the productivity of African firms relative to those in other countries. There are differences between African countries, however, with some showing evidence of a stronger business community and better business climate. Finally, the paper adopts a political-economy perspective on the prospects for reform of Africa’s business climate, considering African attitudes to business and the fractured nature of African business sectors as between indigenous, minority and foreign investors. The latter have far higher productivity and a greater propensity to export; however, Africa’s difficult business climate and the tendency to overcome this by working in ethnic networks slows new entry and may decrease the incentives of key parts of the business community form constituting an aggressive pressure group for reform. Even though reforms are moving forward in several countries, this slows their impact and raises the possibility that countries settle into a low-productivity equilibrium. The paper concludes with a discussion of the findings for reforms to boost the competitiveness and diversification of African economies.Africa, manufacturing, private sector, business climate,

Information Technology and Customer Service Performance among Insurance Companies in Nigeria

Information technology (IT) has been regarded as an enabler of business process. Despite the significant progress made in IT business-value research, findings have been mixed and inconsistent. This study aims at finding out if IT resources per se can account for variations in customer service performance among insurance companies in Nigeria. Using primary data obtained through field survey of 402 insurance companies in Nigeria, three hypotheses were tested with the aid of ordinary least square regression. Results show that all the three components of IT namely, IT infrastructure, IT technical skills and IT spending have weak relationship with customer service performance. This study recommends that in order to realise benefits from IT investments, IT resources must be accompanied by a judicious mix of management, economic, and human resources. Keywords: Information technology, customer service performance, insurance companies

Commodities and Linkages: Industrialisation in Sub-Saharan Africa

In a complementary Discussion Paper (MMCP DP 12 2011) we set out the reasons why we believe that there is extensive scope for linkage development into and out of SSA’s commodities sectors. In this Discussion Paper, we present the findings of our detailed empirical enquiry into the determinants of the breadth and depth of linkages in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber). We conclude from this detailed research that the extent of linkages varies as a consequence of four factors which intrinsically affect their progress – the passage of time, the complexity of the sector and the level of capabilities in the domestic economy. However, beyond this we identify three sets of related factors which determined the nature and pace of linkage development. The first is the structure of ownership, both in lead commodity producing firms and in their suppliers and domestic customers. The second is the nature and quality of both hard infrastructure (for example, roads and ports) and soft infrastructure (for example, the efficiency of customs clearance). The third is the availability of skills and the structure and orientation of the National System of Innovation in the domestic economy. The fourth, and overwhelmingly important contextual factor is policy. This reflects policy towards the commodity sector itself, and policy which affects the three contextual drivers, namely ownership, infrastructure and capabilities. As a result of this comparative analysis we provided an explanation of why linkage development was progressive in some economies (such as Botswana) and regressive in others (such as Tanzania). This cluster of factors also explains why the breadth and depth of linkages is relative advanced in some countries (such as South Africa), and at a very nascent stage in other countries (such as Angola)

PNG mineral boom: Harnessing the extractive sector to deliver better health outcomes

International experience has shown that mining and resources sector participation in Public-Private Partnerships (PPPs) can realise substantial health benefits not only for the company, but also for its public sector partners and communities. This paper summarises the international experience, and presents examples of mining and resource sector participation in health care in Papua New Guinea (PNG). The extractive industries in PNG are already actively involved in health service delivery and improving health conditions in the area within which they operate. With the prospect of major economic growth in PNG comes an opportunity to further systematise and expand on the application of industry expertise to creating lasting development in the PNG health sector for the benefit of the private sector, the government and the community alike. The paper also discusses some of the challenges in further harnessing the private sector as a partner in PNG development, including i) barriers to collaboration; ii) engaging with extractive industry partners; and iii) developing relationships and trust.Public-Private Partnerships, mining, resources, health, PNG, extractive industries

Technological capability, relational capability and firms’ performance The role of learning capability

Purpose – The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa. Design/methodology/approach – A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively. Findings – The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance. Research limitations/implications – The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position. Practical implications – Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance. Social implications – Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance. Originality/value – This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance

DEVELOPMENT OF COMPETITIVENESS INDICES FOR INDIGENOUS CONSTRUCTION FIRMS IN NIGERIA

Competitiveness of indigenous construction firms plays a vital role in the economic development of any nation. The significance of competitiveness to economic development lies in the fact that it increases the level of profits earned by indigenous construction firms, thereby contributing to a nation‟s Gross Domestic Product (GDP). However, foreign construction firms dominate the Nigerian construction market on account of managerial and technological capabilities in which foreign construction firms have a significant comparative advantage. This research, therefore, aimed at developing a set of indices which can be used as a benchmark for evaluating the competitiveness of indigenous construction firms in Nigeria. The study adopted a quantitative research design. Questionnaire was used to elicit information from indigenous construction firms registered with the Nigerian Institute of Building (NIOB). Data obtained from the survey were analyzed using bar charts, tables, ranking analysis and correlation. Competitiveness indices were developed by means of the „weighted summation‟ a statistical tool for evaluating multi-criteria concepts. Forty significant competitiveness indices were developed in this research. The five most significant competitiveness indices for indigenous construction firms in Nigeria were: effectiveness of cost controlling methods, effectiveness of site management, method of procurement, effectiveness of time controlling methods and client relationship. Finally, this study recommended that indigenous construction firms should allocate sufficient resources to the competitiveness indices developed in this study in order to increase their chances of winning more jobs and ultimately significantly bridge the gap between them and their foreign counterparts

Contract farming supply chain relationship and business performance within Malaysian poultry industry

Agriculture is one of the key sectors for international trade that supply food to the world population. Further improvement would be strengthening the contract farming system at the operation level and improving the profitability of producers. Measuring business performance provides the required information to the management for effective decision- making and is used by businesses to evaluate progress against objectives in an assessable coordination. This study highlighted the impact of Supplier Involvement and Customer Involvement, later termed as Integrator Involvement (II) and Grower Involvement (GI) in contract broiler production. The research then focused on determining the relationship between integrator involvements and grower involvements moderated by managerial skill towards business performance. This would enable improved contribution of the broiler - farming system in the country and boost profit. The data for this research was collected through mail survey questionnaires from 285 contract broiler producers in Malaysia. The content was validated by experts from the Department of Veterinary Services of Malaysia, and analyzed using the SPSS Version 19 (Statistical Package for Social Science) software. Then correlation and hierarchical regression analysis were done to gauge the preliminary results and relationship between the variables. The research also identified the theory and practice gaps applicable to broiler - contract farming and provided moderating - effect explanations linking those gaps. The result thus derived, suggests that in order for businesses to capitalize and benefit from the working skills, companies need to train their staff in technical and administrative fields. Hence, this study empirically demonstrated its importance and urged the firms to focus on it when applying managerial skills. Staff equipped with better innovative knowledge and managerial skills would be able to deliver operational efficiency and affirm that enhanced managerial skills would be able to strengthen the companies’ ability to augment business performanc