Effect of Strategic Outsourcing Approaches on The Performance of Manufacturing Companies Listed at The Nairobi Security Exchange, Kenya

Purpose: This study sought to establish the effect of strategic outsourcing approaches on the performance of manufacturing.Methodology: A descriptive survey design was adopted, informed by the relatively small population of the listed manufacturing and allied companies, which doubled as the target population of the study. A structured and closed- ended questionnaire was used to collect primary data, administered by drop and pick a method. Total of (72) strategic managers drawn from the nine manufacturing firms were involved in the study. Data collected was quantitatively scrutinized based on research objectives and presented in form of tables and charts for interpretation. The data was then be analyzed through descriptive and inferential statistics supported by the statistical package for social sciences (SPSS), version 22. Regression analysis was done to ascertain the effect of strategic outsourcing approaches on performance. The response rate of the study was 92%.Results and conclusion: The findings of the study showed that strategic professional outsourcing, strategic manufacturing outsourcing, strategic business process outsourcing and strategic project outsourcing have a positive relationship with performance of performance of the manufacturing companies listed at the Nairobi Security Exchange. The results of the regression analysis revealed there is a significant positive relationship between the dependent variable and the independent variable. The independent variables reported R-value of .805 indicating that there is a perfect relationship between a dependent variable and independent variables. R square value of 0.647 means that 64.7% of the corresponding variation in performance of manufacturing companies listed at the Nairobi Security Exchange can be explained or predicted by (strategic professional outsourcing, strategic manufacturing outsourcing, strategic business process outsourcing and strategic project outsourcing) which indicated that the model fitted the study data. The results of the regression analysis revealed that there was a significant positive relationship between the dependent variable and independent variable at (β = 0.647), p=0.000 <0.05).Unique contribution to theory, practice and policy: Finally, the study commends that manufacturing companies listed at the Nairobi Security Exchange embrace the various strategic outsourcing approaches as a way to improve their performance. Equally, the study recommends similar studies be carried out in other industries across the country and in abroad to ascertain if the same results can be obtained and generalized.

PRACTICE OF USING MANUFACTURING OUTSOURCING AND POSSIBLE SUPPLY CHAINS TRANSFORMATION IN THE FASHION INDUSTRY

The structure of supply chains in the fashion industry has been considered, their main participants have been highlighted. The pros and cons of international production outsourcing for companies working in this industry also have been reviewed. The main factors that are prerequisites for possible changes in the configuration of global supply chains in the fashion industry have been designated. The impact of digital technologies on the configuration of supply chains has been evaluated. The functioning of the «fast «digital factories of Adidas «Speedfactory» and «Faberlic» company has been analysed, which use digital technologies in the production process of manufacturing goods in the fashion industry and are aimed at the maximum reduction of the inventory fulfillment cycle in the fashion industry.

Manufacturing Outsourcing to Achieve Organizational Performance through Manufacturing Integrity Capabilities

Manufacturing companies outsource their manufacturing process to achieve organizational performance. Companies can focus on improving their core business processes while leaving manufacturing process to companies that are more efficient and cost-effective. However, this leaves manufacturing companies with a dilemma as those outsourcing companies are also producing for competitors and companies’ brand is liable to the integrity of outsourcing companies. By having integrity capabilities, it is argued that companies can achieve organizational performance. This paper investigates the relationship between manufacturing outsourcing and organizational performance with the mediating effect of manufacturing integrity capabilities. This paper contributes to the body of literature by investigating the impact of manufacturing integrity capabilities with resource-based view and transaction cost economics theories. Furthermore, this paper also is practically useful for companies to understand integrity capabilities that are useful to increase organizational performance in the era of the dynamic business environment.