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

Figures & data

Table 1. Factor analysis of subcontracting constraints.

Items	Factor loading
Proliferation of makes	0.67
Increased demand for specialised technology	0.29*
Low visibility	0.56
Poor services	0.70
Limited application of new technology	0.83
Competition from imported parts	0.86
Low capital intensity	0.81
Lack of local suppliers for certain parts	0.58
Unfulfilled order from subcontractors	0.13*
Interest conflicts with subcontracting partners	0.66
Disclosure of commercial Secrets	0.55
Legal disputes	0.11*
Weaken Culture	−0.02*
Decrease compatibility of innovation	0.75
Number of Items	14
Cronbach’s Alpha	0.91

Notes: Authors Computation, 2015.

NB: The factors marked with (*) were eliminated from further analysis.

Table 2. Factor analysis of firm performance.

Growth in sales (volume)	0.90
Growth in profit	0.88
Gross value of capital (machinery)	0.81
Return on assets	0.78
Growth in market share	0.87
Product success	0.76
Labour productivity	0.71
Increase in workers	0.70
No. of indices	8
Cronbach’s Alpha	0.92

Note: Author’s Computation, 2015.

Table 3. Mean distribution of responses to subcontracting constraints.

Variables	N statistic	Range statistic	Minimum statistic	Maximum statistic	Mean statistic	Std deviation
Proliferation of makes		0.00	2.00	2.00	2.00	0.00
Limited application of advance technology		0.00	2.00	2.00	2.00	0.00
Decrease compatibility of innovation		1.00	3.00	4.00	3.52	0.50
Disclosure of commercial secrets		3.00	2.00	5.00	4.23	0.77
Interest conflicts		3.00	2.00	5.00	4.18	0.72
Low visibility		0.00	2.00	2.00	2.00	0.00
Poor services		2.00	1.00	3.00	4.13`	0.74
Imported goods		1.00	3.00	4.00	3.52	0.50
Low capital intensity		3.00	2.00	5.00	4.23	0.77
Lack of local suppliers for certain parts		0.00	2.00	2.00	2.00	0.00
Valid number	80

Source: Field Work and Author’s Computation, 2015.

Table 4. Percentage and mean distribution of responses to firm performance.

Item	Significantly decreased (1) %	Relatively decreased (2) %	Static (3) %	Relatively increased (4) %	Significantly increased (5) %	Mean	Standard deviation
Growth in sales	2.30	28.30	10.00	40.40	19.00	2.15	0.46
Profit Growth	3.50	29.30	16.60	50.60	0.00	2.82	0.80
Return on assets	5.60	16.70	43.10	24.60	10.00	2.04	0.54
Gross value of capital	5.50	19.00	34.30	21.00	20.20	2.64	0.89
Profit success	0.60	12.60	39.40	45.10	2.30	2.15	0.36
Growth in market share	10.00	13.40	25.20	50.30	1.10	2.44	0.90
Increase in workers	5.00	10.90	48.10	35.40	0.60	2.16	0.96
Labour productivity	5.00	14.90	55.00	15.10	10.00	2.64
Total average	33.13	18.12	33.96	35.31	7.9	2.38	0.71

Note: Field work and Author’s Computation, 2015.

Table 5. Subcontracted input and output share over a period of ten (10) years.

Years	Subcontracted input share (%)	Subcontracted output share (%)
2000–2001	6.31	6.56
2001–2002	5.22	5.30
2002–2003	4.54	4.80
2003–2004	4.41	4.52
2004–2005	5.38	5.40
2005–2006	4.41	4.52
2006–2007	4.41	4.00
2007–2008	4.50	4.87
2008–2009	5.36	5.50
2009–2010	5.77	5.99

Note: Fieldwork Author’s Computation, 2015.

Figure 1. Subcontrated input share (time series analysis).

Figure 2. Subcontrated output share (time series analysis).