DRIVERS AND CHALLENGES OF VERTICAL INTEGRATION IN THE TANZANIAN CONSTRUCTION INDUSTRY

Catherine Luambano, Neema Kavishe, Sam Zulu, Nicholas Chileshe

Research output: Contribution to conferencePaperpeer-review

Abstract

Vertical integration is originally from the manufacturing industry. It is considered as a diversification strategy adopted in the construction industry as means of solving some of the existing problems associated with construction industry such as supply chain problems, fragmented process and absence of integration to mention a few. Based on existing literature, there is paucity of studies in this area. therefore, to bridge the knowledge gap the aim of this study is to identify driving factors and challenges encountered in the application of vertical integration in the Tanzanian construction industry. A qualitative research approach was adopted through a case study method whereby a total of 15 semi-structured interviews were conducted. Data were analysed through content analysis. The findings showed that the top three driving factors were increase in competition, quality improvement and client satisfaction. Whereas, nature of contracts, high investment cost, decreased strategic flexibility and increased business risk were the most mentioned challenges. The results of this study will foster better understanding of the drivers and challenges encountered and suggest solutions to enhance the application of Vertical Integration in the Tanzanian Construction Industry.

Original languageEnglish
Pages609-618
Number of pages10
Publication statusPublished - 2023
Externally publishedYes
Event39th Annual ARCOM Conference, ARCOM 2023 - Leeds, United Kingdom
Duration: 4 Sept 20236 Sept 2023

Conference

Conference39th Annual ARCOM Conference, ARCOM 2023
Country/TerritoryUnited Kingdom
CityLeeds
Period4/09/236/09/23

Keywords

  • challenges
  • diversification
  • driving factors
  • Tanzania

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Civil and Structural Engineering
  • Building and Construction

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