Title:
INFLUENCE OF VERTICAL INTEGRATION ON ORGANIZATIONAL RESPONSE TO DYNAMIC ENVIRONMENT IN WHOLESALE AND RETAIL SUPERMARKET OUTLETS IN NAKURU, KENYA

Authors:
Esther Karimi and Dr. Margaret Waruguru

Abstract:
Strategic responses enable the organization to survive in turbulent environment with certainty. This study sought to examine the influence of vertical integration on organizational response to dynamic environment in supermarkets in Nakuru, Kenya. The study was based on Dynamic Capability Theory. The study employed descriptive research design with a target population of 182 management employees in 14 supermarkets in Nakuru. Simple random sampling was used where 80 management employees were selected as the respondents of the study. The study used 5-point Likert scale structured questionnaire to collect data. Questionnaires were tested for validity and reliability. Data was analyzed using descriptive statistics and inferential statistics. The analyzed data was presented in tables followed by discussions. The study established that vertical integration had a positive significant relationship with organization response to dynamic business environment. Further, vertical integration had a significant influence on organizational response to dynamic business environment. The study concluded that vertical integration plays a significant role in determining organizational response of supermarkets to dynamic environment in Nakuru, Kenya. It was recommended that the supermarkets should come up with strategies to moderately adopt vertical integration as this may enable supermarkets to strike an appropriate balance between internal and external environment.