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Research Paper | Management | Kenya | Volume 5 Issue 4, April 2016 | Popularity: 7 / 10

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Use of Integration Strategy on Competitive Performance of Rabbit Meat Production Firms in Kenya

Catherine Wanjiku Kimani, Barrack Okello, Juma Wagoki

Abstract: This study was aimed at finding out the use of integration strategies for competitive performance of rabbit meat production firms in Kenya and if there is any influence of the integration strategies on competitive performance of the rabbit meat production firms in Kenya. The study was guided by the following objectives, to analyse the effect of vertical integration strategy on competitive performance of the rabbit meat industry in Kenya, to establish the effect of horizontal integration strategy on competitive performance of the rabbit meat industry in Kenya and to analyse the effect of diagonal integration strategy on competitive performance of the rabbit meat industry in Kenya. The study collected data from production managers and farm managers. It used descriptive analysis for individual research indicators while correlation and regression analysis were used to establish the effect of vertical, horizontal and diagonal integration on competitive performance. Empirically, using Pearson correlation r and significance value p, vertical integration was found to contribute to 62.7 % i. e. r^2=0.632 at (r=0.795, p<0.01) of the positive variation in competitive performance of these firms. On the other hand, diagonal integration was found to contribute 51.9 % i. e. r^2=0.519 at (r=0.721, p<0.01) while horizontal integration was found to insignificantly contribute 1.5 % i. e. r^2=0.015 at (r=0.126, p<0.01). From the regression analysis, R=0.860 and R^2=0.74 indicate that 74 % of changes in competitive performance of the firms was attributed to collective use of vertical, horizontal and diagonal integration. The study recommended that, firms should have in place internal organizational policy and culture that encourages vertical integration and put into place internal organizational structures that allow cross flow of information so as to allow adoption diagonal integration. Further studies were suggested on the critical success factors for successful adoption of vertical and diagonal integration and on the role of management in adoption of integration strategies in production environment especially with specific interest on vertical and diagonal integration.

Keywords: Integration Strategy, Competitive Performance, Rabbit Meat Production Firms

Edition: Volume 5 Issue 4, April 2016

Pages: 928 - 935

DOI: https://www.doi.org/10.21275/NOV162704

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