Outsourcing Influences and Performance of Manufacturing Companies in Rwanda a Case of Ameki Color
DOI:
https://doi.org/10.53819/81018102t3181Abstract
The study assessed the influence of outsourcing on the performance of manufacturing companies in Rwanda, using Ameki Color Ltd as a case study. Specifically, it examined the effects of cost reduction, human capital, and operational efficiency on organizational performance. A descriptive research design was adopted. Data were collected from 85 respondents selected through purposive sampling using questionnaires and documentary review. Descriptive and inferential statistical techniques, including Pearson correlation and multiple regression analysis, were employed to analyze the data. The study found that outsourcing significantly influences the performance of Ameki Color Ltd. Cost reduction showed a strong positive relationship with performance (r = 0.825, p < 0.01). Similarly, human capital was strongly associated with organizational performance (r = 0.852, p < 0.01), while operational efficiency also demonstrated a strong positive relationship with performance (r = 0.820, p < 0.01). The study concluded that effective outsourcing practices contribute substantially to improved organizational outcomes. The study suggested that manufacturing companies should adopt strategic outsourcing practices to reduce costs, enhance access to skilled human resources, and improve operational efficiency, thereby strengthening organizational performance. This study contributes to the limited empirical literature on outsourcing and organizational performance in Rwanda’s manufacturing sector by providing evidence from Ameki Color Ltd and highlighting key outsourcing dimensions that drive performance improvement.
Keywords: Outsourcing, Performance, Manufacturing companies, Rwanda, Ameki color ltd.
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