Subcontracting and Multinational Firms Performance in Nigeria Manufacturing Industry
Subcontracting and Multinational Firms Performance in Nigeria Manufacturing Industry

Subcontracting and Multinational Firms Performance in Nigeria Manufacturing Industry

Summary/Abstract: This study sought to investigate the effect of subcontracting on the Performance of Manufacturing Multinational Firms (MNFs) in Nigeria. The study employed a survey research design, through the administration of structured questionnaire to a sample of 397 management staff of the three selected firms. The validity of the instrument was tested using content validity index (CVI) through the assessment of five academics and five top staff of MNFs service firms and it was rated on a two-point scale (relevant and not relevant) which gave a value of .8819. A pilot study was conducted through test re-test method to ascertain the extent of consistency of the research instrument; the result gave a Cronbach alpha of 0.82 which indicated that the instrument is reliable. The findings revealed that, performance elements (cost reduction, production enhancement, market expansion and risk sharing) have both individual and combine effect on subcontracting, with t-value of 7.02 (0.0000), 9.88 (0.0000), 5.86 and 5.42 (0.0000) respectively. While the F-value of (63.29*0.000), (96.96*0.000), (34.52*0.000) and (29.49*0.000) respectively, suggests that the model is reliable for decision and policymaking. It further indicated that subcontracting has a positive and significant effect on MNFs performance It is therefore recommended that, MNFs should continuously improve and adopt subcontracting policy towards sustainable performance and the government through the ministry of trade, commerce and industry should encourage both poly and geo centric orientations in subcontracting practices of MNFs

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