Abstract:
The research was based on Dashen Brewery s/c Debire Birehan plant is beverage manufacturing
company. The purpose of the study was to establish what driven Dashen to outsource and how
that decision affects the overall performance of Dashen. The research questions were presented
in order to identify the effect of cost-driven outsourcing on organizational performance; the
effect of expertise-driven outsourcing on organizational performance and the effect of focus driven outsourcing on organizational performance. The study employed an explanatory research
design. Out of the study population of 281 employees of the company, a sample size of 128 was
taken, whose elements was selected using a random sampling technique. Questionnaires were
used as the primary data collection instrument. Data was analyzed using descriptive statistics,
correlation and regression analysis and then presented in tables. All outsourcing drivers were
practiced to a great extent level, but expertize was practiced to a moderate extent level. Dashen
brewery Share Company should concentrate on cost of inputs in order to improve the
performance a company in terms of profitability, sales growth and customer satisfaction. Cost is
the most determinant of organizational performance. Focus driven and expertize driven had also
significant effect on organizational performance. Therefore, Dashen brewery Share Company
should concentrate on focus and expertize driven of outsourcing
