Strategic outsourcing and corporate performance of quoted insurance firms in Nigeria

https://doi.org/10.35912/ijfam.v5i1.884
Published: Jun 8, 2023

Abstract:

Purpose: This study is aimed at determining the effect of strategic outsourcing and corporate performance of quoted insurance firms in Nigeria

Research methodology: The study adopted a survey research design because it is suitable and ideal for assessing how effective outsourcing strategy affects the corporate performance of insurance firms in Nigeria. With a population of 720 staff from three quoted insurance firms in Nigeria, using Yamane's formula, a sample of 260 respondents was selected. Multiple regression was used to test the hypotheses that were developed at a significance level of 0.05 percent.

Results: The study unveiled that outsourcing has evolved into a helpful strategy and weapon for corporate organizations, particularly for Nigerian insurance companies that are constantly looking to improve their corporate performance in the financial sector.

Limitations: This study is limited to quoted insurance firms in Nigeria as of December 2021; hence, the result may not be universal to other excluded categories. It is expected that further studies should cover all the insurance firms in Nigeria with variables like comprehensive and ICT outsourcing strategies on the operational efficiency and profitability of insurance firms in Nigeria.

Contributions: To leverage the services of other organizations and professionals outside of their core competencies for operational effectiveness and efficiency, corporate organizations in Nigeria, especially those in the financial sector, should incorporate strategic outsourcing into their corporate culture.

Keywords:
1. Corporate-performance
2. Quoted-Insurance
3. Strategic-outsourcing
Authors:
1 . Amechi Fabian Anoke
Department of Business Administration, Nnamdi Azikiwe University, Awka Anambra State, Nigeria
2 . Ndidiamaka Joy Okafor
Department of Business Administration, Nnamdi Azikiwe University, Awka Anambra State, Nigeria
3 . Anthonia Nkechi Onu
Department of Business Administration, Nasarawa State University Keffi, Nigeria
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How to Cite
Anoke, A. F., Okafor, N. J., & Onu, A. N. (2023). Strategic outsourcing and corporate performance of quoted insurance firms in Nigeria. International Journal of Financial, Accounting, and Management, 5(1), 19–33. https://doi.org/10.35912/ijfam.v5i1.884
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Issue & Section
Vol. 5 No. 1 (2023): June
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Letica, M. (2016). The effect of outsourcing activities selection on the benefits of outsourcing. Management: Journal of Contemporary Management Issues, 21(2), 77-97.

    Levina, N., & Ross, J. W. (2003). From the vendor's perspective: Exploring the value proposition in information technology outsourcing. MIS quarterly, 331-364.

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    Obiageli, O. L., Uzochukwu, O. C., & Agbomma, A. H. (2015). Outsourcing strategy and organizational growth of selected fast food firms in South-South, Nigeria. IOSR Journal of Business and Management, 17(9), 117-126.

    Ojiaku, O. C., Ojiagu, N. C., & Agbasi, O. E. (2020). Collaborative entrepreneurship, diversity management, and entrepreneurial performance of small and medium scale firms in Nigeria. International Journal of Financial, Accounting, and Management, 2(2), 131-144.

    Okeke-Ezeanyanwu, J. A. (2017). Impact of outsourcing on organizational productivity in private and public sector organizations in Anambra State. African Journal of Education, Science and Technology, 3(4), 112-116.

    Shanjabin, S., & Oyshi, A. H. (2021). The comparative analysis of FMCG enterprises' vision, mission, and core values focusing on strategic human resources. International Journal of Financial, Accounting, and Management, 3(2), 115-128.

    U., N.-O. P., & Kenechkwu, A. P. (2022). Outsourcing strategy and performance of Money Deposit Banks in Anambra State, Nigeria. American International Journal of Bussiness Management (AIJBM), 5(4), 01-11.

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  2. Agburu, J. I., Anza, N. C., & Iyortsuun, A. S. (2017). Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs). Journal of Global Entrepreneurship Research, 7(1), 1-34.
  3. Ajemunigbohun, S. S., Isimoya, O. A., & Ipigansi, P. M. (2019). Insurance claims fraud in homeowner’s insurance: Empirical evidence from the Nigerian insurance industry. Facta Universitatis. Series: Economics and Organization, 103-116.
  4. Akinbola, O. A., Ogunnaike, O. O., & Ojo, O. (2013). Enterprise outsourcing strategies and marketing performance of fast food industry in Lagos state, Nigeria. Global Journal of Business, Management and Accounting, 3(1), 24-35.
  5. Alfayo, B., Malenya, A., & Musiega, D. (2015). Effect of managerial expertise on organizational performance of investment banks in Kenya: A case study of Old Mutual Acquisition of Faulu Kenya Micro-Enterprise. International Journal of Business and Management Invention, 4(4), 38-54.
  6. Alwanga, J. (2015). The effect of business process outsourcing on the Performance of telecommunication firms in kenya. University of Nairobi.
  7. Anoke, A. F., Osita, F. C., Eze, S., & Muogbo, U. (2021). Business Perception as a Strategy for Sustaining Entrepreneurship in the Face of Insurgency in Niger State, Nigeria. International journal of Multidisciplinary Research and Analysis, 4(10), 1353-1360.
  8. Arshad, Y., & Ahlan, A. R. (2013). IT outsourcing as an innovative strategy for economic advancement: Lessons from Malaysia. Paper presented at the 2013 5th International Conference on Information and Communication Technology for the Muslim World (ICT4M).
  9. Austin-Egole, I. S., & Iherioanma, E. (2020). Outsourcing and organizational performance: A comparative analysis of Nigeria Bottling Company Plant and Camela Vegetable Oil Company, Owerri, Imo State, Nigeria. Research on Humanities and Social Sciences, 10(12), 64-83.
  10. Awino, Z. B., & Mutua, J. M. (2014). Business process outsourcing strategy and performance of Kenyan state corporations. Journal of emerging trends in economics and management sciences, 5(7), 37-43.
  11. Aziz, A., Memon, J. A., & Ali, S. (2020). Logistics capability, logistics outsourcing and firm performance in manufacturing companies in Pakistan. The Journal of Asian Finance, Economics and Business, 7(8), 435-444.
  12. Berggren, C., & Bengtsson, L. (2004). Rethinking outsourcing in manufacturing:: A tale of two telecom firms. European Management Journal, 22(2), 211-223.
  13. Bob-Alli, M. M. (2010). Fundamentals of Insurance Operations
  14. Egesimba, P. U. (2021). Outsourcing Management Strategies And Organizational Performance In Manufacturing Firms In South East Nigeria.
  15. Ekanayaka, Y., Currie, W. L., & Seltsikas, P. (2002). Delivering enterprise resource planning systems through application service providers. Logistics Information Management.
  16. Elmuti, D., Grunewald, J., & Abebe, D. (2010). Consequences of outsourcing strategies on employee quality of work life, attitudes, and performance. Journal of business strategies, 27(2), 177-203.
  17. Emmanuel, I., Chuka, I., Geoffrey, E., & Shedrack, M. (2021). The Pros and Cons of Outsourcing Logistic Functions among Manufacturing Firms in Southwest, Nigeria. International Journal of Innovative Science and Research Technology, 6(5).
  18. Emmanuel, O. O. (2013). Outsourcing practice and performance of mobile telephone service providers in Nigeria. DBA Africa Management Review, 3(2).
  19. Espino-Rodr??guez, T. F., & Padrón-Robaina, V. c. (2004). Outsourcing and its impact on operational objectives and performance: a study of hotels in the Canary Islands. International Journal of hospitality management, 23(3), 287-306.
  20. Fabian, A. A., & Ibrahim, I. O. (2022). Microfinance Financial Strategies and Business Growth of Women Entrepreneurs in Gboko, Benue State Nigeria.
  21. Fabian, A. A., Nzewi, H. N., Chinyere, A. O., & Nkechi, O. A. (2021). Micro-Insurance Services and Growth of Women Entrepreneurs in Onitsha, Anambra State, Nigeria.
  22. Fosi?, I., Kristi?, J., & Trusi?, A. (2017). MOTIVATIONAL FACTORS: DRIVERS BEHIND WOMEN ENTREPRENEURS’DECISION TO START AN ENTREPRENEURIAL VENTURE IN CROATIA. Scientific Annals of Economics and Business, 64(3), 339-357.
  23. Gerald, E., Obianuju, A., & Chukwunonso, N. (2020). Strategic agility and performance of small and medium enterprises in the phase of Covid-19 pandemic. International Journal of Financial, Accounting, and Management, 2(1), 41-50.
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  25. Ghodeswar, B., & Vaidyanathan, J. (2008). Business process outsourcing: an approach to gain access to world?class capabilities. Business process management journal.
  26. Gonzalez, R., Gasco, J., & Llopis, J. (2009). Information systems outsourcing reasons and risks: an empirical study. International Journal of Human and Social Sciences, 4(3), 181-192.
  27. Grover, V., Teng, J. T., & Cheon, M. J. (1998). Towards a theoretically-based contingency model of information systems outsourcing: Wiley, Chichester.
  28. Jyoti, J., & Chahal, H. (2015). Sustainable Competitive Advantage: A Road to Success. Sustainable Competitive Advantage: A Road to Success, 1.
  29. Kayumba, C. (2019). Effect of outsourcing on organizational performance in Rwanda. Master's Thesis, Umeå School of Business and Economics, Business Administration.
  30. Letica, M. (2016). The effect of outsourcing activities selection on the benefits of outsourcing. Management: Journal of Contemporary Management Issues, 21(2), 77-97.
  31. Levina, N., & Ross, J. W. (2003). From the vendor's perspective: Exploring the value proposition in information technology outsourcing. MIS quarterly, 331-364.
  32. Munir, N. S. (2021). Corporate parenting and corporate entrepreneurship in media company. International Journal of Financial, Accounting, and Management, 3(1), 15-26.
  33. NSE, T. N. S. E. (2019). THE NIGERIAN STOCK EXCHANGE 2019 FACT BOOK: Facts and Figures Behind Performance (A Picture of Companies Listed on the Nigerian Stock Exchange): The Nigerian Stock Exchange.
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  35. Obiageli, O. L., Uzochukwu, O. C., & Agbomma, A. H. (2015). Outsourcing strategy and organizational growth of selected fast food firms in South-South, Nigeria. IOSR Journal of Business and Management, 17(9), 117-126.
  36. Ojiaku, O. C., Ojiagu, N. C., & Agbasi, O. E. (2020). Collaborative entrepreneurship, diversity management, and entrepreneurial performance of small and medium scale firms in Nigeria. International Journal of Financial, Accounting, and Management, 2(2), 131-144.
  37. Okeke-Ezeanyanwu, J. A. (2017). Impact of outsourcing on organizational productivity in private and public sector organizations in Anambra State. African Journal of Education, Science and Technology, 3(4), 112-116.
  38. Shanjabin, S., & Oyshi, A. H. (2021). The comparative analysis of FMCG enterprises' vision, mission, and core values focusing on strategic human resources. International Journal of Financial, Accounting, and Management, 3(2), 115-128.
  39. U., N.-O. P., & Kenechkwu, A. P. (2022). Outsourcing strategy and performance of Money Deposit Banks in Anambra State, Nigeria. American International Journal of Bussiness Management (AIJBM), 5(4), 01-11.
  40. Ugbomhe, U., Olu, O., & Monday, E. (2021). Strategic Outsourcing and Corporate Performance in Nigerian Banking Industry. Journal of Business Theory and Practice, 9, p68. doi:10.22158/jbtp.v9n2p68
  41. Vaxevanou, A., & Konstantopoulos, N. (2014). Outsourcing Economic Perspective Wholeness: The Multiplicative Contribution of the Economic Variables to the Outsourcing Procedure. Procedia - Social and Behavioral Sciences, 148. doi:10.1016/j.sbspro.2014.07.067
  42. Yamane, T. (1967). An introductory analysis of Statistics: New York: Harper and Row.
  43. Yeboah, A. (2013). The relationship between outsourcing and organizational performance. European Journal of Business and Management, 5(2), 1-12.