Risk Management Mediates the Relationship Between Outsourcing and Profitability of Manufacturing Firms


  • Noah Mwelu Department of Procurement and Logistics Management, Makerere University Business School, Plot 21A, Port bell road, Kampala, Uganda https://orcid.org/0000-0002-4187-560X
  • Dr. Susan Watundu Department of Management Science, Makerere University Business School, Plot 21A Port bell road, Kampala, Uganda
  • Prof. Musa Moya Faculty of Computing and Informatics, Makerere University Business School, Plot 21A Port bell road, Kampala, Uganda




Outsourcing, risk management, profitability, mediation, manufacturing firms.


Over decades, manufacturing firms are struggling to remain competitive in an intense manufacturing industry. The struggle is due to increasing manufacturing companies dealing in similar or related products. Given the competitive dynamics in the manufac-turing industry, firms are proactively searching for viable strategies to ensure profitabil-ity and survival. Scholars and management have jointly conducted studies to find ami-cable strategies influencing firms’ profitability. Whereas various studies have been con-ducted on profitability, majority of these studies were concerned with strategies directly influencing profitability with little attention on the mediating role of other strategies. Specifically, little is known on mediation studies in manufacturing industry. Despite strategies directly influencing profitability being established, firms’ are in receivership with several kicked out of business indefinitely. This study bridges the gap by consider-ing the mediating role of risk management on outsourcing and profitability of manu-facturing firms. A cross-sectional research design was adopted. Specifically, a partial mediation approach was adopted following Baron and Kenny mediation guidelines. Results from Med-Graph and Sobel tests proved that risk management significantly me-diated the relationship between outsourcing and profitability (Sobel Z-value = 3.441, p = 0.002). Hence, firms are encouraged to embrace mediation strategies in ensuring prof-itability and survival in the competitive environment.


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Author Biographies

Noah Mwelu, Department of Procurement and Logistics Management, Makerere University Business School, Plot 21A, Port bell road, Kampala, Uganda

Dr Noah Mwelu is a Senior Lecturer, Researcher and industry player with over 10 years of work experience. He has a proven ability in procurement, Logistics and Supply Chain Management. Noah holds a PhD (Building ) specializing in public Procurement from University of Newcastle Australia, MSc. Procurement and Supply Chain Management and BSc. Procurement and Supply Chain Management from Makerere University. Noah was awarded a four year full PhD Scholarship by Commonwealth Government of Australia. Noah with H-index factor of 4 and more than 30 citations has researched and published papers in peer-reviewed journals and also participated in case writing.

Dr. Susan Watundu, Department of Management Science, Makerere University Business School, Plot 21A Port bell road, Kampala, Uganda

Dr. Susan Watundu holds a Ph.D. in Economics from University of Dar es Salaam. She is currently a Senior Lecturer and the Head, Department of Management Science, Faculty of Economics, Energy and Management Science at Makerere University Business School. Susan has worked with Makerere University Business School for thirteen (14) years and as a research fellow at the World Bank, Office of the Chief Economist Africa Region in Washington DC. Susan has vast experience of over 15 years of policy research, experimental studies and consulting in Household and Baseline Surveys, Agriculture, Transport, Energy and Trade, Operations research and Environmental Management. Susan has 13 academic publications in international refereed journals and co-authored two books in trade and econometrics. She has supervised eight (8) master’s students to completion and advised four (4) Ph.D students to completion as a doctoral committee member in the areas of energy and environmental economics, ICT, bio-statistics, finance, accounting, business reengineering and governance.

Prof. Musa Moya, Faculty of Computing and Informatics, Makerere University Business School, Plot 21A Port bell road, Kampala, Uganda

Prof Musa Moya hold a PhD in ICT, BSc. Stat, M.Stat, PGDS, Ph.D.  He is a Professor of Computing and Statistics and Dean Faculty of Computing and Informatics. He is a Faculty member Department of Applied Computing and IT Faculty Affiliate ICT University Cameroon. Prof Musa Moya is a Research Associate ICITD Baton Rouge Lousiana USA. Consultant ICT4D, Computing Solutions, Statistics & Operations Research, Pioneer Dean Faculty of Computing and Informatics, 2017 To date. Dean Faculty of Computing and Management Science 2014- May 2017. Pioneer Head Business Computing (2004- October 2013), Deputy Dean/Assoc. Dean October 2013 to June 2014, Nettel@Africa MUBS Academic Coordinator & Board member. ORSEA Country Representative & ORSEA Uganda Chapter Chairman (2004-2018). ORSEA MUBS Board member (2004-2018). Board member MUBS ICT Center. NIC MUBS RBS Trustee Board Member. MUBS Council Member. MUBS Appointments Board member, Member Uganda Economic Forum and MUBS SACCO Member


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How to Cite

N. Mwelu, S. Watundu, and M. B. Moya, “Risk Management Mediates the Relationship Between Outsourcing and Profitability of Manufacturing Firms”, J. Mech. Constr. Eng., vol. 3, no. 2, pp. 1–7, Nov. 2023.




Research Article