Luambano, C; Kavishe, N; Zulu, S and Chileshe, N (2023) Drivers and challenges of vertical integration in the Tanzanian construction industry. In: Tutesigensi, A and Neilson, C J (eds.) Proceedings of 39th Annual ARCOM Conference, 4-6 September 2023, University of Leeds, Leeds, UK.
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.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | vertical integration; diversification; construction industry; Tanzania; driving factors; challenges. |
| Index terms: | strategy, content analysis, manufacturing industry, quality improvement, interview, Tanzania, case study, construction industry, integration, qualitative research, diversification, competition, client satisfaction, vertical integration |
| Subjects: | vertical integration, client relations, research design and methodology, data collection methods, project delivery, data analysis and analytics, Geography, management, industry analysis, market analysis, organizational analysis |
| Topics: | Supply Chain Management, Quality Management, Organizational Design, Business Strategy, Geographical Context, Research Practice, Stakeholder Management |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here