VERTICAL DIVERSIFICATION AND ORGANIZATIONAL COMPETITIVENESS OF MANUFACTURING COMPANIES IN SOUTH EAST, NIGERIA

Abstract

This study examined the nexusbetween vertical integration (backward and forward) and
organizational competitiveness with reference to listed manufacturing firms in South-East,
Nigeria. Descriptive survey research design wasadopted. The population of study
comprised of 594 (managers, supervisors and administrative) staff of listed manufacturing
firms in South-East, Nigeria. A sample size of two hundred and thirty-nine (239) was
drawn from the population using Taro Yamene formula while stratified proportionate
random sampling technique was used for the sample unit. Two hundred and fifteen (215)
copies of questionnaire retrieved were completely filled and used for the study. The
Spearman Rank Correlation (rho) was used to ascertain the relationship between vertical
integration and organizational competitiveness. The result of the bivariate analysis
reveals that backwardintegration and forward integration had a significant positive
relationship with the organizational competitiveness. The findings led to the conclusion
that verticalintegration is imperative in improving the competitiveness of manufacturing
firms in Nigeria, South-East. The study recommends among other things, that
manufacturing companies should integrate backwardly as to control the quality of their
input and products, also forwardly as to get first-hand information from end users for
taking informed decision that will enhance their competitiveness.