Publisher: Centre For Social Science Research, Enugu

Performance Effectiveness of Related Product Market Diversification Strategy In Nigerian Companies: Information and Communication Technology As A Virile Tool

Akewushola R. Olasupo (phd)
KEYWORDS: Performance, product-market diversification, information and communication technology, business resources


This study examined the impact of Information and Communication Technology (ICT) on the performance of 12 selected Nigerian firms that are pursuing a strategy of related product-market diversification. Related diversification was measured by the extent of diversification arising from involvement in several industries of the same industry group. ICT intensity was measured by dividing the ICT budget of a company. Gross margin, financial performance ratios and sales growth were used to measure performance. a cross-sectional survey research design was used to collect primary and secondary data for the study. Convenience sampling technique was used to select the sampled firms while purposive random sampling method was used to select 426 respondents who served as multiple informants for the survey. A five-point Likert scale was used to measure the opinions of the respondents on the level of product-market diversification and ICT with the former group performing better than the later group. The result of the regression analysis showed that the intensity of ICT has a significant influence on the performance of firms that are using a related product-market diversification strategy with a co-efficient of 5.170. The R 2 obtained showed that the total variability in the corporate performance of a related productmarket diversifier can be explained by the intensity of ICT thus making ICT intensity a good predictor of organizational performance. The study concludes that the performance impact of related-market diversification is not the same for all firms and is largely relative and determined and moderated by the intensity of ICT in a firm

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