Outsourcing and public universities performance in Nigeria, the mediating effect of trust

Abstract

PurposeOutsourcing has become part of organizational strategy for achieving efficiency and effectiveness. This study aims to examine outsourcing and public universities’ performance in Nigeria, the mediating effect of trust.Design/methodology/approachThe study used 353 respondents as sample size drawn from 12 public universities across the six geo-political zones of the country. The study used partial least squares structural equation modeling (PLS-SEM) using ADANCO 2.0.1.FindingsThe study found significant relationships between outsourcing and quality of teaching and research (core activities) and outsourcing and the quality of other activities (non-core). Also, the study found a significant relationship between outsourcing and low-cost. While the study supports the position of transaction cost economics and relational theories, in contrast, it has not supported the core competence theory. Generally, the study found that outsourcing significantly affects public universities’ performance in Nigeria, and trust partially mediates the relationship.Research limitations/implicationsThe study, such as any other research, has limitations. The study is only limited to public universities and the research has not included students in its survey.Practical implicationsManagers of public universities are always looking for ways to reduce costs and enhance the quality of their activities. This study has demonstrated the relevance of outsourcing activities in Nigerian Public Universities. Therefore, managers should focus on outsourcing in areas that have not been outsourced but have the potentials of efficiency and effectiveness if outsourced. Furthermore, the study broadens the understanding of promoting an environment of trust in outsourcing; therefore, managers should encourage trust with their vendors to achieve the desired outcomes of outsourcing.Originality/valueThis study examines the mediating effect of trust on the relationship between outsourcing and public universities’ performance in Nigeria empirically, drawing on the core and non-core activities of the universities. The study has contributed to the discourse on outsourcing and public universities’ performance in Nigeria. The study also unveiled the contribution of outsourcing activities in public universities in Nigeria, and how trust as a uni-dimensional construct mediates in achieving outsourcing that contributes to the public university system. Finally, the study also contributed to the understanding that universities can outsource some of their core competences and achieve performance.