Jennifer Yila Dangoma, &
Isyaka Mohammed Salisu
Department of Business Administration,
Gombe State University, Gombe State, Nigeria.
Abstract
The intense competition in the business environment and the introduction of competitive policies and products led many enterprises (restaurants) to adopt diversification strategies. The main objective of this study is to investigate the effect of diversification strategy on organizational performance of selected restaurants in Gombe state, Nigeria. In this study, the independent variable is diversification strategy measured via concentric, vertical, and horizontal diversification while its dependent variable is organizational performance (restaurants). The study is quantitative in nature and survey research design was adopted for the study. The study‘s data was collected through the use of a five-point Likert-scale questionnaire and the study‘s population was 120 restarants which also served as the study sample size. Data collected was analyzed using descriptive statistics and multiple regression analysis via SPSS software version 23.0. The study‘s findings revealed that the three (3) diversification strategies (concentric, vertical and horizontal) have positive and significant effect on organizational performance of selected restaurants in Gombe state, Nigeria. Restaurant managers and other stakeholders in the restaurant business should continually embrace diversification strategy by introducing new products, venturing into producing its raw materials and conducting market research because concentric, vertical and horizontal diversification strategies will increase their profitability, market share and growth.
Keywords: Diversification Strategy, Organizational Performance, Growth, Restaurants, Gombe State.
Introduction Organizational performance is essential for economic growth and development globally, with the food and beverages industry, including restaurants, playing a significant role in generating both. The industry encompasses food processing, storage, and sales, with restaurants as key components. The performance of restaurants contributes to economic growth through employment and income generation, leading to poverty alleviation and income redistribution……