Internal Organisational Factors that Influence the Adoption of Strategic Outsourcing within Supply Chains

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Author: Ronald Ajuk, University of Liverpool Online, United Kingdom
Abubaker Haddud, University of Liverpool Online, United Kingdom
Email: abubaker.haddud@online.liverpool.ac.uk
Published: December 12, 2017
https://doi.org/10.22492/ijbm.2.2.01

Citation: Ajuk, R., & Haddud, A. (2017). Internal Organisational Factors that Influence the Adoption of Strategic Outsourcing within Supply Chains. IAFOR Journal of Business & Management, 2(2). https://doi.org/10.22492/ijbm.2.2.01


Abstract

The purpose of this paper was to identify what key internal organisational factors, and how they, influence the adoption of strategic outsourcing within supply chains in the Ugandan oil
and gas sector. The research also aimed to identify best ways to manage internal organisational factors to improve strategic outsourcing adoption. Data was collected through the use of a semi-structured interview consisted of 23 questions divided into three main sections based on the three main research questions. Qualitative data was collected from 104 managers directly involved with aspects related to strategic outsourcing adoption within the supply chains of three International Oil Companies and four Oilfield Service Companies operating in the oil and gas sector in Uganda. The study results indicated that the four key factors influencing outsourcing adoptions were: cost reduction, need to focus more on core competences, lack of appropriate technological capabilities, and the need to have access to new ways of doing things. It is recommended that more research is conducted to explore potential external factors that may influence the adoption of strategic outsourcing. It is also recommended to research how better capacity building may impact the success of strategic outsourcing adoption. This research contributes to the pool of knowledge about the domain of outsourcing within oil and gas supply chains. The study can also serve as a valuable guideline for concerned managers to help them effectively plan, implement, and manage strategic outsourcing initiatives within the Ugandan oil and gas sector.

Keywords

strategic outsourcing, internal organisational factors, supply chain, oil and gas, Uganda