Publications

Research outputs, reports, policy briefs and knowledge products from KIU scholars and partners.

2023 Faculty of Business and Management www.idosr.org

Assessment of the relationship between outsourcing and organization’s financial performance in Igara Growers Tea Factory in Bushenyi District.

Atuhire Madinah; Bateyo Asuman; Turyamushanga Labson

This study examined the relationship between outsourcing and organization’s financial performance in Igara Growers Tea Factory in Bushenyi District. A conceptual framework was developed relating outsourcing functions and indicators of financial performance. Thisresearch findings will be employed by government agencies, private sector foundations forexample Uganda National Chamber of Commerce among others to evaluate the role ofoutsourcing on financial performance. The results will also help business stakeholders onhow to attach financial performance to the decision to outsource and finally the study willhelp future researchers as a source of references on a similar studies. Simple random and purposive sampling techniques were used to select the respondents. Cross sectional and descriptive research designs were used in the study to collect data from the field. Qualitativeand quantitative approaches were also used. Pearson's linear correlation coefficient was usedto determine the relationship between outsourcing and financial performance of the factory.The researcher found out that outsourcing and organization’s financial performances are “two sisters of the same blood” they are closely related. This is based on various factors. The researcher found out that outsourcing promotes the volume of sales of Igara Grower’s Teafactory and increased sales go hand in hand with profitability. In conclusion, whenoutsourcing is done; the financial performance of the origination improves. Likewise when the organization’s financial performance improves it enables the organization to do outsourcing because then it has the financial capacity to meet outsourcing obligations