Abstract:
The objective of the study was to provide empirical evidence regarding the impact of
vertical integration on the financial performance of Olam Nigeria Limited. Data
collected were gotten from Olam Nigeria Limited financial record and questionnaires
administered to employees of Olam Nigeria Limited within the study sample frame.
The secondary data was cross-sectional between the period of 2010-2018. While the
administered questionnaire was to 183 employees of Olam selected using convenience
and snowball sampling. An econometrics model was used to identify and evaluate the
impact of vertical integration on financial performance. The study adopted an
explanatory research design and quantitative measurement. The primary data was
analyzed using a Statistical Package for Social Sciences (SPSS) software version 20
was used to analyze the primary data, using frequency and percentage to describe the
primary data. On the other, the secondary data analysis using an econometric-view
statistical package series 7. Furthermore, the secondary data described using
descriptive statistics, ordinary least squared regression to explain the independent
variable’s impact on the dependent variable, and unit root to check if the regression
was spurious; and determine stationarity to test the null hypotheses. The study findings
indicated a positive impact of vertical integration components on financial performance
measures in Olam Nigeria Limited. The findings supported the works of (Behesti &
Hultman, 2014; Isaksen, 2007). Any firm considering vertical integration should
consider their present financial status and the cost implication to the prospective benefit
before embarking on the strategy as it is evidently capital intensive.
