STRATEGIC OUTSOURCING, COMPETITIVE DYNAMICS, AND RISK MITIGATION IN EMERGING MARKETS: AN EMPIRICAL ANALYSIS OF THE FAST-FOOD INDUSTRY AND ITS IMPLICATIONS FOR PERFORMANCE SUSTAINABILITY

Authors

Keywords:

Strategic outsourcing, Market competitiveness, Supply chain management, Risk mitigation, Fast-food industry

Abstract

Strategic outsourcing has become an important strategy for enhancing competitiveness within Nigeria’s fast-food industry. This study examines the extent to which outsourcing non-core functions contributes to operational efficiency, cost reduction, and market competitiveness. Using a mixed methods research approach, data were collected from 329 employees and management personnel across 10 major fast-food companies in South East Nigeria. The findings indicate that security services (45%) and cleaning services (28%) were the most frequently outsourced functions, while operations (19%), recruitment (5%), and information technology services (2%) were outsourced to a lesser extent. The findings further show that outsourcing generated initial financial benefits, with return on investment increasing between 2015 and 2017, before declining in 2018. Retained profits followed a similar pattern, suggesting that the financial gains associated with outsourcing may diminish when outsourcing arrangements are not strategically managed. The study also identifies regulatory uncertainty, quality control challenges, financial instability, and labour related concerns as major constraints on outsourcing effectiveness. The Competitive Outsourcing and Risk Mitigation Model (CORMM) developed in the study provides a structured framework for integrating supplier relationship management, quality control, competitive advantage, and risk mitigation. The study recommends that fast-food companies adopt systematic supplier evaluation and monitoring mechanisms, strengthen contractual and quality assurance provisions, diversify suppliers where appropriate, and regularly assess the long-term financial implications of outsourcing decisions. Policymakers should also strengthen regulatory oversight and contract enforcement while ensuring adequate protection of outsourced workers. These measures would enable firms to capture the efficiency benefits of outsourcing while reducing its financial, operational, and labour related risks

Dimensions

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Published

2026-10-21

How to Cite

Chukwu, A. U., & Oko-Isu, A. (2026). STRATEGIC OUTSOURCING, COMPETITIVE DYNAMICS, AND RISK MITIGATION IN EMERGING MARKETS: AN EMPIRICAL ANALYSIS OF THE FAST-FOOD INDUSTRY AND ITS IMPLICATIONS FOR PERFORMANCE SUSTAINABILITY. FUDMA Journal of Business Management, 4(2), 175-190. https://doi.org/10.70882/fjbm.2026.v4i2.130

Issue

Vol. 4 No. 2 (2026): FUDMA Journal of Business Management

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Articles
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Copyright (c) 2026 Agnes Ugboego Chukwu, Anthony Oko-Isu (Author)

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

Chukwu, A. U., & Oko-Isu, A. (2026). STRATEGIC OUTSOURCING, COMPETITIVE DYNAMICS, AND RISK MITIGATION IN EMERGING MARKETS: AN EMPIRICAL ANALYSIS OF THE FAST-FOOD INDUSTRY AND ITS IMPLICATIONS FOR PERFORMANCE SUSTAINABILITY. FUDMA Journal of Business Management, 4(2), 175-190. https://doi.org/10.70882/fjbm.2026.v4i2.130

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