SUBCONTRACTING AND ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF NIGERIAN BOTTLING COMPANY

OKON, Nse Bassey
School of Maritime Transport Studies.
Maritime Academy of Nigeria, Oron.
ABSTRACT
This study examined the link between subcontracting and organizational performance. The study
adopted an explanatory research design. The population of the study comprised staff of Nigerian
Bottling Company Plc in Ajegunle and franchising outlets. Questionnaire was used to collect primary
data for the study, while the Chi Square non-parametric statistical tool was used to test the
hypotheses formulated. The study found that subcontracting relates to productivity, efficiency and
profitability of Nigerian Bottling Company Plc in Ajegunle and its franchising outlets. Nigeria
Bottling Company, it was determined, applies subcontracting as a strategic management tool. The
study recommends that government must take measures to rationalize the industry and remove policy
and institutional impediments which make small suppliers riskier and more expensive for the
assemblers.
Keywords: Efficiency, organizational performance, productivity, profitability