Influence of subcontracting constraints on the performance of manufacturing industries in Nigeria

Abstract

In this work, an attempt has been made to show the influence of subcontracting constraints on firm performance in Nigeria. The study in line with the literature identified a number of constraints hindering an effective subcontracting arrangement in the study area. While the constraints were found not to have affected the use of subcontracting in the country, low capital intensity, disclosure of commercial secrets, poor services and interest conflict were found to have restricted subcontracting arrangements in the study area to sharing of equipment and short-term contracts. These constraints however were found not have affected the performance of manufacturing industries in the study area. This paper keeping in mind the findings of this study suggested that manufacturing industries in Nigeria should invest more in machineries and tools so as to increase subcontracting co-operations among industries.