Research Article

Determinants of Make or Buy Decision of Firms in Nigeria

Sebastine Abhus OGBAISI1*, Richard Iyere OGHUMA1
1 Department of Accounting, Faculty of Management Sciences, Ambrose Alli University, Ekpoma, Edo State Nigeria.
* Corresponding author: sebastine.ogbaisi@aauekpoma.edu.ng
Published: Jun, 2024
DOI: 10.67894/bjf.2024.wo72pcti
Pages: 120-131
Views: 9
Downloads: 1

Abstract

Make or buy decision is solely the responsibility of strategic managers for the aim of achievingsome level of profitability. This study examined the determinants of make or buy decision of firmsin Nigeria. The study adopted a survey research design. 100 respondents comprising, managementstaff of Guinness Nigeria Plc, Edo State of Nigeria, formed the sample size of the study. The studyemployed multivariate regression technique for the empirical analysis. The regression analysisrevealed that manufacturing cost has a positive insignificant relationship with make or decision offirms in Nigeria, logistic management cost has a positive significant relationship with make ordecision of firms in Nigeria and quality management has a positive insignificant relationship withmake or decision of firms in Nigeria. The study concludes that logistic management cost is adeterminant of make or buy decision, since it has a significant relationship with make or buy.Manufacturing cost and quality management are not determinants of make or buy since they haveinsignificant relationships with make or buy, even though they are positively associated with makeor buy. The study recommended that production and operation managers should carefully appraiselogistic management cost since it’s a determinant of make or buy decision of firms in Nigeria.Furthermore, management of manufacturing firms in Nigeria should consider the cost of makingor buying at minimal cost advantage so as to achieve better profit margin

Keywords

Logistic Management Cost Manufacturing Cost Make or Buy Decision Quality Management

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How to Cite

OGBAISI, S. A., & OGHUMA, R. I. (2024). Determinants of Make or Buy Decision of Firms in Nigeria. Bayero University Journal of Finance, 1(1), 120-131. https://doi.org/10.67894/bjf.2024.wo72pcti

S. A. OGBAISI, and R. I. OGHUMA, "Determinants of Make or Buy Decision of Firms in Nigeria," Bayero University Journal of Finance, vol. 1, no. 1, pp. 120-131, June 2024. doi: 10.67894/bjf.2024.wo72pcti

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