Integration Strategy and Organizational Performance: A Case of Vertical Integration

Abstract

Vertical integration has been common as way of pulling resources for sustainability and synergy of the organization. The paper investigate vertical integration as mode of bringing resources and increasing economies of scale. General objective It was based on the following specific purposes; To evaluate the effect of human resources integration in mergers on organizational performance;organizational culture integration, leadership integrations and market integrations in mergers on organizational performance. The paper adopted the oligopolistic, free cash flow, and Size and Return to Scale Theories. The paper used descriptive research design. The study targeted population of 6 managers and 47 employees of Faulu Micro-Finance and Old Mutual Integration. Census was used in the research where structured questionnaire were used. Pilot study was conducted prior to the field data collection in order to determine the reliability of the research instruments used and content validity was also tested through passing the questionnaire to experts. Descriptive statistics was used where mean and standard deviation was interpreted appropriately. Regression analysis was also used to provide inferential statistics. The findings' indicated that HRM and marketing integration strategies provided positive significant improvement in performance. The organization and management provided positive improvement but not significant among the four integration strategies. The result also found positive correlation between integration strategies and performance of the organization.