THE IMPACT OF OUTSOURCING ON ORGANIZATIONAL PERFORMANCE. A CASE STUDY OF ACCRA BREWERY LIMITED.

Abstract

The study investigates the impact of outsourcing on organizational performance, focusing on Accra Brewery Limited. Outsourcing, initially a cost-reduction strategy, has evolved into a critical business practice that allows firms to concentrate on core competencies while leveraging external expertise for non-core functions. This research examines how outsourcing contributes to organizational performance, competitive advantage, and customer satisfaction within the Ghanaian business environment. A case study approach was employed, with data gathered from 120 respondents at Accra Brewery Limited. The research utilized both descriptive and inferential statistical methods to analyze the data. The findings indicate that outsourcing logistics operations, particularly import/export services, significantly improves operational efficiency and supports the company's ability to offer unique products. Additionally, outsourcing contributed to enhancing brand trust, which is crucial for competitive advantage. However, the study also revealed limitations in areas such as customer service, where outsourced functions did not always meet the desired quality standards, and in cost management, particularly in material procurement, where anticipated savings were not fully realized. The study concludes that while outsourcing is a valuable strategy for improving specific aspects of organizational performance, it should be complemented by internal innovation and robust oversight of outsourced activities. Strengthening customer service quality, optimizing procurement cost management, and fostering stronger partnerships with outsourcing providers are recommended to maximize the benefits of outsourcing. These findings contribute to the broader understanding of how outsourcing can be strategically used to enhance organizational performance in the Ghanaian context