Gain competitive advantage on the wheels of vertical integration: evidence of the Nigerian financial sector.

Abstract

The Nigerian financial industry has been in the throes of intense competition, with most firms stopping at nothing to gain a competitive market advantage. This study examines the nexus between vertical integration and gaining a competitive edge in the financial industry. The study adopted the quantitative design with a survey strategy. A sample frame of 753 was obtained from the management staff of 12 purposively selected financial institutions in South-West, Nigeria. Acquisition suppliers’ firm reduced the overall operating cost of Nigeria’s financial firms. The study recommends that financial institutions need to exploit the massive opportunity in vertical integration to grow and survive in that highly competing industry.