Vertical Integration and Economic Performance on Managerial Capability Framework
DOI:
https://doi.org/10.51699/ajdes.v30i.744Abstract
The study's goal was to gather empirical information on the effects of vertical integration on economic performance. Between 2010 and 2018, the secondary data was cross-sectional. The survey was given to 183 workers from various companies who were chosen by convenience and snowball sampling. The influence of vertical integration on financial performance was identified and evaluated using an econometrics model. The study used a quantitative measuring method and an explanatory research methodology. The main data was analyzed using version 20 of the Statistical Package for Social Sciences (SPSS) software, which employed frequency and percentage to characterize the original data. The secondary data analysis, on the other hand, was done with an econometric-view statistical program series 7. Furthermore, descriptive statistics, ordinary least squares regression to explain the independent variable's impact on the dependent variable, and unit root to check if the regression was spurious; and determining stationarity to test the null hypotheses were used to describe the secondary data. The outcomes of the study revealed that vertical integration components have a beneficial impact on managerial effectiveness. The researcher advises that any company pursuing vertical integration think about their current financial situation and the cost implications of the approach before committing to it because it is clearly capital expensive.
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