Construction Firms’ Satisfaction on Outsourced Services at Construction Phase of Building

Main Article Content

Innocent Chigozie Osuizugbo
Ayo Lahanmi
Opeyemi Oyeyipo
Adesoye Morakinyo

Abstract

Aims: Across the globe, outsourcing services has become more complex and sophisticated. The aim of this study is to establish the level of satisfaction of Nigerian construction firms on outsourced services at construction phase of building with a view to assisting construction firms in their decision on whether to outsourced a particular work section or not.

Study Design: Survey Research Design.

Place and Duration of Study: The study took place in Ogun State, Nigeria, between June 2019 and December 2019.

Methodology: The study focused on outsourcing and targeted at outsourcing services offered during construction phase of building. The research combined a wide-ranging literature review and questionnaire survey. A well-structured questionnaire was designed and distributed to construction firms in Ogun state. A total of 73 of the survey questionnaires were administered out of which 47 representing 64.4% were adequately filled and returned. Data obtained were analysed using frequency, percentage, mean, relative importance index and ranking.

Results: Findings from the study revealed that piling is the most often outsourced work during construction phase of building, followed by electrical installation, cladding and mechanical installation. The results of the study revealed major reasons for outsourcing to include specialization, technology advancement and core competences. Ability to meet changing needs, service-level contract agreement with outsourcer and excessive dependence on vendor reliability were revealed to be the major challenges that affect the ability of the Nigerian construction firms to successfully outsource services. It was also established that Nigerian construction firms have high level of satisfaction on the outsourced services during the construction phase of building.

Conclusion: The study suggested that Nigerian construction firms should give consideration to piling, cladding, basement and mechanical installation in outsourcing and concreting, formwork, plumbing installation and roofing in in-house.

Keywords:
Building, construction phase, in-house services, Nigerian construction firms, outsourcing services.

Article Details

How to Cite
Osuizugbo, I. C., Lahanmi, A., Oyeyipo, O., & Morakinyo, A. (2020). Construction Firms’ Satisfaction on Outsourced Services at Construction Phase of Building. Journal of Economics, Management and Trade, 25(6), 1-13. https://doi.org/10.9734/jemt/2019/v25i630212
Section
Original Research Article

References

Mbamali I, Okotie AJ. An assessment of the threats and opportunities of globalization on building practice in Nigeria. American International Journal of Contemporary Research. 2012;2(4):143-150.

Nzewi HN, Onwuzuligbo LT, Akaeme CI, Arachie AE. Outsourcing strategy and performance of construction firms in Nigeria. International Journal in Management and Social Science. 2016;4(6):426-440.

Idoro GI. Influence of in-sourcing and outsourcing of consultants on construction project performance in Nigeria. Australasian Journal of Construction Economics and Building. 2011;11(4):45-58.

Amos D, Gadzekpo A. Cost of in-house vs outsourced facilities management services in public polytechnics in Ghana. Asia Pacific Journal of Advanced Business and Social Studies. 2016;2(2):414-435.

Kalinzi C. Outsourcing (Logistics) services and supply chain efficiency - A critical review of outsourcing function. European Journal of Logistics, Purchasing and Supply Chain Management. 2016;4(3):59-86.

Pahirathan A. A literature review on outsourcing of services in universities. IOSR Journal of Business and Management (IOSR-JBM). 2017;19(12): 47-56.

Hila CM, Dumitraşcu O. Outsourcing within a supply chain management framework. Proceedings of the 8th International Management Conference, "Management Challenges for Sustainable Development", November 6th-7th, Bucharest, Romania. 2014;328-338.
Available:http://conferinta.management.ase.ro/archives/2014/pdf/31.pdf
(Accessed 3 July 2019)

Somjai S. Advantages and disadvantages of outsourcing. 7th International Conference on Restructuring of the Global Economy, 3-4th July 2017, University of Oxford, UK, The Business and Management Review. 2017;9(1):157-160.
Available:http://www.abrmr.com/myfile/conference_proceedings/Con_Pro_32717/
conference_21121.pdf
(Accessed 3 July 2019)

KHK C. Evaluating effective outsourcing strategy in facility management. FIG Working Week 2015, From the Wisdom of the Ages to the Challenges of the Modern Sofia, Bulgaria. 2015;17-21.
Available:https://www.fig.net/resources/proceedings/fig_proceedings/fig2015/papers/
TS07J/TS07J_chan_7777.pdf
(Accessed 3 July 2019)

Calia P, Pacei S. Outsourcing and firm performance: Evidence from the Italian manufacturing industry. International Journal of Business and Management. 2017;12(11):87-102.

Baytok A, Soybali HH, Zorlu O. Outsourcing in thermal hotel enterprises: The case of Turkey. Business Management Dynamics. 2013;3(5):01-14.

Andone II, Păvăloaia VDW. Outsourcing the business services. Informatica Economică. 2010;14(1):163-171.

Verroiopoulos A, Sfakianaki E. An investigation to the trends of outsourcing and its impact on procurement, planning procedures and organization in construction companies in Greece. International Journal of Energy Science and Engineering. 2015;1(4):148-152.

Dogerlioglu O. Outsourcing versus in-house: A modular organization perspective. The Journal of International Management Studies. 2012;7(1):22-30.

Kavaleff A. Successful outsourcing through proactive contracting – strategy, risk assessment and implementation. Stockholm Institute for Scandinavian Law; 2010.
Available:http://www.scandinavianlaw.se/pdf/49-11.pdf
(Accessed 3 July 2019)

Venter JJ. The relevance of outsourcing in construction project management companies: A literature study. A Study Project Presented to the Graduate School of Business of the University of Stellenbosch in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration; 2000.

Iqbal Z, Dad AM. Outsourcing: A review of trends, winners & losers and future directions. International Journal of Business and Social Science. 2013;4(8): 91-107.

Sattineni A. Outsourcing and off-shoring: Options for the US construction industry. International Business & Economics Research Journal. 2008;7(5):59-66.

Showkat N, Parveen H. Non-probability and probability sampling; 2017.
Available:https://www.researchgate.net/publication/319066480_Non-Probability_and_
Probability_Sampling
(Accessed 14 January 2019)

Alvi MH. A manual for selecting sampling techniques in research; 2016.
Available:https://mpra.ub.uni-muenchen.de/70218/
(Accessed 14 January 2019)