THE IMPACT OF VERTICAL INTEGRATION STRATEGIES ON THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN JOS, PLATEAU STATE
Abstract
Today, companies and indeed small and medium enterprises operate in a highly competitive environment, regardless of the contributions of vertical integration strategy in lifting and expanding business enterprises, small and medium enterprises still remain left out. This study attempted to examine the extent to which small and medium enterprises has been affected by vertical integration strategy. This work dwelled on the effect of the control of raw materials supply influences the growth and performance of small and medium enterprises in Jos. The study tried to examine the influence of the taken over of distribution channel’s points on the growth and performance of small and Medium enterprises in Jos. A research design was adopted and SMEs were randomly chosen from the population. The data collected was analyzed using regression analysis. The finding of the study revealed that control of raw materials supply and taken over of distribution centers have significant effect on the growth of SMEs in Jos. This research concluded that vertical integration strategies have significant impact on the growth of SMEs in Jos. The study recommended that for SMEs to grow and expand, vertical integration strategies (control of raw materials and taken over of distribution channels points) in Jos, Plateau state should be made a priority by businesses owners in order to grow and expand their business horizon for profit maximization.
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