Date of Conferral

2016

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Alen Badal

Abstract

A survey of 25 industrial manufacturing organizations in the U. S. indicated that 70% of respondents experienced dissatisfaction with their outsourcing programs due to unfulfilled expectations, which caused negative continuance intentions. The purpose of this descriptive case study was to explore the experiences of customers who currently use 3PMRO outsourcing programs to determine what factors affect satisfaction levels in the Southern United States. The conceptual framework for this study was the expectancy disconfirmation paradigm, which connects consumer satisfaction level to the fulfillment of consumer expectations. Data were collected from interviews of 22 procurement professionals of maintenance, repair, and operating supplies; observations of 3PMRO supplier performance meetings; and the analysis of performance scorecard documents. Data were analyzed using pattern matching followed by thematic analysis. Three themes were identified through the data analysis that affected consumer satisfaction: inventory management services, utilization of outsourced labor resources, and total cost value of the 3PMRO program. According to results, satisfaction of 3PMRO consumers are based on the proper utilization of a 3PMRO program for the intended limitations of the organization, reduced MRO supply costs, improved inventory management strategies, and improved competitive advantage from the realignment of resources to focus on core competencies. Implications for positive social change include increased awareness of cradle-to-grave inventory management to prevent improper disposal of non-biodegradable materials into our environment.

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