Agara, S. D.
Department of Business Administration, Faculty of Management Sciences, Rivers, State University, Nkpolu- Oroworukwo, PMB 5080, Port Harcourt, Nigeria
and
Bagshaw, K. B.
Department of Business Administration, Faculty of Management Sciences, Rivers, State University, Nkpolu- Oroworukwo, PMB 5080, Port Harcourt, Nigeria
ABSTRACT
This study examined the impact of corporate diversification specifically conglomerate and concentric diversification on the differentiation of food and beverages manufacturing firms in South-South, Nigeria. A quantitative research design was employed, and data were collected through structured questionnaire administered to management-level personnel across selected food and beverage firms operating in the region. The study utilized Partial Least Squares Structural Equation Modeling for data analysis due to its effectiveness in handling complex models and its suitability for exploratory studies involving latent constructs. Findings revealed that both conglomerate and concentric diversification positively influence diffrentiation, but with varying degrees of impact on the individual dimensions. Conglomerate diversification shows a stronger positive relationship with differentiation suggesting that firms leveraging unrelated diversification are better positioned to create synergies that support product development. On the other hand, concentric diversification demonstrated a moderate impact on differentiation but less influence, indicating that related diversification may offer market spread benefits without significantly enhancing required capabilities. This study concludes corporate diversification specifically conglomerate and concentric diversification has a significant impact on differentiation of food and beverages manufacturing companies in South-South, Nigeria. Therefore, the study recommends that Therefore, the study recommends that food and beverage manufacturing companies in South-South Nigeria should strategically pursue both conglomerate and concentric diversification to enhance their differentiation capabilities.
Keywords: Corporate diversification, conglomerate diversification, concentric diversification, differentiation.