Business diversification and market-based performance of selected corporate organizations in the conglomerate sector of the Nigerian economy

This study investigated the effects of diversification strategy and synergy on the performance of selected corporate organizations in the conglomerate sector of Nigerian industrial economy. A descriptive survey research design was adopted as the study guide. The population of the study comprises of all corporate organizations that operate in conglomerate sector of Nigerian industrial economy. Using purposive sampling technique, five (5) corporate organizations were selected for the study. The selected companies were listed on the Nigerian Stock Exchange. A sample size of 398 respondents was selected. A structured questionnaire was used as research instrument. Cronbach's Alpha reliability coefficients for the research instrument ranged between 0.79 and 0.83. Data generated were analyzed using parametric statistical tool for regression analysis. The findings reveal that diversification strategy and synergy can positively enhance corporate performance in terms of market penetration, market development and product lines expansion at 0.05 level, as the study empirically proved that significant positive relationships exist among these variables. Diversification therefore becomes an attractive strategy when a company runs out of profitable growth opportunities in its present business operations. Moreover, going against the core values of the company for the sake of profit maximization need to be avoided in order for diversification to be truly strategic and synergic.