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Horizontal Integration Strategies and Competitiveness of Firms in EPZ Kenya

Author

Listed:
  • NJUGUNA, Naomi Njeri

    (Post graduate student, Jomo Kenyatta University of Agriculture and Technology)

  • Dr. Josphat Kwasira

    (Lecturer, Jomo Kenyatta University of Agriculture and Technology)

  • Dr. Anne Kariuki

    (Lecturer, Karatina University)

Abstract

Global challenges have given a rise in levels of competitiveness among industries that produce similar or related goods and services. One possible solution to this is the use of horizontal integration strategy to ensure efficient production. This study therefore intended to determine the influence of horizontal integration strategy on the competitiveness of EPZ firms. The study was guided by two theories, namely; the resource-based view theory and the transaction economic cost theory. The study adopted the use of a questionnaire. Both quantitative and qualitative approaches were used. Descriptive technique, specifically survey was used in the research design. The target population was all the 137 EPZ firms within Kenya and the sample was drawn from this population. The stratified random sampling technique was used. The EPZ firms are situated within the 74 gazetted zones. The quantitative data that was collected was analysed using the Statistical Package for Social Scientists. Further, the significance level of each independent variable was tested against the dependent variable at 95% level of confidence using ANOVA, regression and correlation techniques. The findings of this study indicated that horizontal integration had a positive and statistically significant relationship with the competitiveness of firms in EPZ Kenya. This study recommends the inclusion of horizontal integration in the strategic plans of the different EPZ firms. This will subsequently lead to an increase in employment opportunities, real-value added growth, and foreign direct investment (KNBS, 2022). In conclusion, from the analysis of findings, horizontal integration is significant for competitiveness of firms in EPZ Kenya.

Suggested Citation

  • NJUGUNA, Naomi Njeri & Dr. Josphat Kwasira & Dr. Anne Kariuki, 2024. "Horizontal Integration Strategies and Competitiveness of Firms in EPZ Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1660-1676, February.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:2:p:1660-1676
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    References listed on IDEAS

    as
    1. Naliaka V.W. & G.S. Namusonge, 2015. "Role of Inventory Management on Competitive Advantage among Manufacturing Firms in Kenya: A Case Study of Unga Group Limited," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(5), pages 87-104, May.
    2. Giulio Cainelli & Donato Iacobucci, 2012. "Agglomeration, Related Variety, and Vertical Integration," Economic Geography, Clark University, vol. 88(3), pages 255-277, July.
    3. repec:asi:aeafrj:2012:p:615-641 is not listed on IDEAS
    4. Shah Moahmmad Tanvir Monsur & Takahashi Yoshi, 2012. "Improvement of firm Performance by Achieving Competitive Advantages through Vertical Integration in the Apparel Industry of Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(6), pages 687-712.
    5. Fiocco, Raffaele, 2016. "The strategic value of partial vertical integration," European Economic Review, Elsevier, vol. 89(C), pages 284-302.
    6. Giulio Cainelli & Donato Iacobucci, 2012. "Agglomeration, Related Variety, and Vertical Integration," Economic Geography, Taylor & Francis Journals, vol. 88(3), pages 255-277, July.
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