Contract, relational norms and outsourcing performance in Commercial Banks.

Abstract

The research study focused on establishing the relationship between contract, relational norms and outsourcing performance in commercial banks. It was prompted by reports of increasing contract violations, low levels of relational norms and poor outsourcing performance in Uganda’s commercial banks. The specific objectives were to examine the relationship between contract and outsourcing performance, to establish the relationship between relational norms and outsourcing performance, to determine the relationship between contract, trust, commitment and outsourcing performance and to examine the relationship between relational norms, trust, commitment and outsourcing performance in commercial banks. Conceptually, a framework was developed by the researcher from the available literature relating to contract, relational norms and outsourcing performance. A cross sectional research design was used. Views about contract, relational norms and outsourcing performance in commercial banks were gathered from 14 banks, secondary data was also used to supplement the views. Findings showed that there were significant positive relationships, between contract and outsourcing performance, relational norms and outsourcing performance, contract, trust, and commitment and outsourcing performance. The findings further indicated a significant positive relationship between relational norms, trust, commitment and outsourcing performance in commercial banks. It was concluded that contract significantly affects outsourcing performance and therefore recommended that contract should be emphasized in commercial banks to enhance outsourcing performance.