Horizontal Acquisition and Effectiveness of Manufacturing Firms in Nigeria: A Case of Nigerian Breweries Plc. and Sona Breweries
Keywords:
Acquisition, Market Share, Customer, Retention, Productivity, EffectivenessAbstract
The study examined the correlation between horizontal acquisition and effectiveness of manufacturing firms in Nigeria with particular reference to Nigerian Breweries Plc. and Sona Breweries. Horizontal acquisitions create value by exploiting cost-based and revenue-based synergies. The study adopted the survey research design. A sample size of 114 was determined from the management staff of Nigerian Breweries Plc Enugu. The data analysis was carried out using Pearson Product Moment Correlation Coefficient (r). Result shows that horizontal acquisition has a significant positive relationship with market share and customer retention of Nigerian Breweries Plc Enugu. It was concluded that horizontal acquisition has a significant positive relationship with effectiveness of Nigerian breweries Plc. Enugu. Based on the findings, it was recommended that brewery firms in Nigeria should make adequate effort to ensure that its customers do not switch over to competitors’ products and services.
References
Ahmed A. & Nadeem M. (2015). Mergers and acquisitions and banks’ performance in Pakistan. Journal of Business Management and Economics, 3 (10), 28-32.
Anyanwu, V. A. (2013). Marketing Management and Strategy. Alvan Global Publications.
Arasa, R. & Gideon, L.N. (2015). The influence of international market entry strategies on firm financial performance: A study of manufacturing multinationals in Kenya. International Journal of Economics, Commerce and Management, 3 (9), 364-386.
Barney, J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 9 (3), 99-120.
Calegario C.L.L., Houston, J.E. & Bruhn, N.C.P. (2015). Foreign market entry strategies in the United States/European Union agri-business trade context. International Journal of Food and Agricultural Economics, 3 (3), 47-61.
Fathollahi M, Harford J. & Klasa S. (2021). Anticompetitive Effects of Horizontal Acquisitions: The impact of within-industry product similarity. Journal of Financial Economics, 144 (2), 645-669.
Gerold, A.C. & Kelly, P. (2011). Management Theory and Practice (7th Edition). CENGAGE Learning.
Gutierrez F.R. & Machuca K. L. J. (2017). International market entry strategy determinants: An exploratory study of Peru. Journal of Business Administration, 33 (59), 179-192.
Haug C. I. & Dahnan O. A. (2014). Internal Factors that Influence Business Market Share. Journal of Business Venturing 11 (4):82-101.
Hofer K. M. & Baba A. (2018). Market entry strategies, innovation and performance of SMEs in the service sector. Journal of Business and Management, 34 (2), 155-171.
Hottman D.L. & Novak V.D (2011). New Approaches for Measuring Consumer Preferences for Really New Products. Advances in Consumer Research, 47 (31):23-44.
Jambi L. (2018). Effects of mergers and acquisitions on the financial performance of financial Institutions in Kenya. International Academic Journal of Economic and Finance, 3(1), 64-79.
Kithitu J., Cheluget J., Keraro V. & Mokamba J. (2012). Role of mergers and acquisitions on the performance of commercial banks in Kenya. International Journal of management & Business Studies, 13 (2), 1-17.
Liargovas, P. & Repousis, S. (2016). The impact of mergers and acquisitions on the performance of the Greek banking sector: An event study approach. International Journal of Economics and Finance, 3 (2), 11-23.
Lindgreen K, Davis S, Brodie G, & Buchanan-Oliver E. (2020). Coping with information technology? How British executives perceive the key information systems management issues in the mid-1990s. Journal of Information Technology, 9, 223-238
Micallef B. (2022). The strategic use of information technology by nonprofit organization: Increasing capacity and untapped potential. Public Administration Review, 67(3), 474487
Mitchell G.E. (2012). The construct of organizational effectiveness: Perspective from leaders of international non-profits in the United States. Non-Profit and Voluntary Sector Quarterly, 2(1), 34-44.
Obialor D.C, Agulanna E.C, & Alugbuo C.C (2022). Market Size Effects and Locational Decision of Selected Foreign Manufacturing Firms in South-West, Nigeria. Journal of Research in Business and Management, 10 (5), 68-79.
Ortilieb E. (2020). Entering a new market? Tips for small business owners. Retrieved from: https://www.fastcapital60.com/blog/new-market-entry-strategy/
Pantano E. (2021). Prelims. In Pantano E. (Ed) Creativity and Marketing. The Fuel for Science. Emerald Publishing Ltd Binglsy.
Penrose E. (1959). The Theory of the Growth of the Firm. New York; John Wiley
Rain N, Yadav S.S. & Jain P.K. (2014). Financial performance analysis of mergers and acquisitions: Evidence from India. International Journal of Communication and Management, 24, 402-423.
Ramirez-Hurtado J.M, Puebla I. & Berbel-Pineda J.M (2018). Influence of Socio-Economic Factors in the International Expansion of Spanish Franchisors to Latin American Countries. PLOS one, Open Access Journal. Retrieved from ideas.repec.org
Robbins S.P, DeCenzo D.A. & Coulter M. (2011). Fundamentals of Management. Essential Concepts and Applications. Pearson Education Inc. Publications, Prentice Hall, New Jessey.
Singh G. & Gupta S. (2015). An Impact of Mergers and Acquisitions on Productivity and Profitability of Consolidation Banking Sector in India. Journal of Research in Management & Technology, 4(9), 33–48.
Singh K. & Chaudhry P. (2019). Measuring post-merger and acquisition performance: An investigation of select financial sector organizations in India. International Journal of Economics and Finance, 2(4), 190-200.
Vennet R. V. (2019). The effect of mergers and acquisitions on the efficiency and profitability of EC credit institution. Journal of Banking & Finance, 20(9), 1531–1558.
Wernerfelt B. (1984). A Resource-based View of the Firm. Strategic Management Journal, 5 (1), 171–180.
Yanan E. M. & Basit A. (2016). Impact of Merger and Acquisitions on Firms Financial Performance. International Journal of Accounting & Business Management, 4(2), 1-6.
Zhang Y., Enang E. & Sminia H. (2019). Post-acquisition integration of emerging multinational corporations: A research agenda. Multinational Business Review, 27 (1), 4-34.
Zhongming T. & Jingyun L. (2022). The Impact of Overseas Mergers and Acquisitions on Corporate Business Risk. International Journal of Scientific Engineering and Science, 6(1), 56-61.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 International Journal of Finance and Management in Practice (IJFMP)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
