Topic
Outsourcing Strategies and Adaptability of Hospitality Firms in Rivers State
Original Research
Authors
Onuegbu, Remigius Chinedu; Hettey, Hubert D. and Oshi, Joseph E. O.
Pages : 38 - 56
Abstract
This study explored the relationship between outsourcing strategies and Organisational adaptability in the hospitality industry in Rivers State, Nigeria. The study specifically focused on two dimensions of outsourcing strategies: outsourcing non-core activities and outsourcing core activities, examining their impact on adaptability. A cross-sectional research design was employed, and data were collected from 78 managers and supervisors using a structured questionnaire. The data were analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The findings revealed a significant positive relationship between outsourcing non-core activities and adaptability, indicating that delegating non-essential tasks to external vendors enables firms to enhance flexibility and respond effectively to environmental changes. However, no significant relationship was found between outsourcing core activities and adaptability, suggesting that outsourcing core functions does not contribute to organisational adaptability and may undermine critical control. In conclusion, the study highlights the importance of strategic outsourcing in enhancing organisational adaptability, particularly through the outsourcing of non-core activities. It is recommended that hospitality firms focus on outsourcing non-core tasks while maintaining control over core functions to ensure sustained adaptability and competitiveness. Practical steps include conducting assessments to identify non-core functions for outsourcing and investing in internal capabilities to manage core operations effectively.