Outsourcing Strategies and Organizational Effectiveness of Oil Companies in Rivers State

Abstract

This study examines the relationship between outsourcing strategies and organizational effectiveness of oil companies in Rivers state. The study employed a cross-sectional research survey. Accessible population for the study is ten (10) selected oil companies. A total of 998 staffs were surveyed. Simple random sampling technique was employed with a sample size of 286. A questionnaire was used to collect data from the respondentsÂ’. Face validity was used to ascertain the validity of the instrument while CronbachÂ’s Alpha coefficient was used to establish the reliability of the instrument. Spearman Rank Order Correlation Coefficient was used to test the hypotheses with the aid of Statistical Package for Social Science (SPSS) version 20.0. It was found that outsourcing strategies have a significant positive relationship with the organizational effectiveness of oil companies in Rivers State. The study concluded that outsourcing strategies that are based on expertise orientation and corporate culture would improve the organizational efficiency of oil companies. One of the recommendations is that managers should effectively implement outsourcing strategies, to enhance organizational effectiveness.