Production Subcontracting: A Strategy for the Survival of Small and Medium Scale Industries in Nigeria

Abstract

This study set out to investigate production subcontracting as a strategy for the survival of small and medium scale industries in Nigeria. The paper discovered that enhancing the operational efficiency, reducing cost by concentrating on core business function, specialization to gain professional resources, strengthening cooperation between subcontracting partners were the major economic factors that have ensured the survival of small and medium scale industries in the region. This was also corroborated by the pattern of distribution of industries in the study area which was relatively clustered paving the way for both networking and clustering co-operations among the industries. The paper recommended that SMIs in other parts of the country should be strengthened by the adoption of this process.

DOI: 10.5901/mjss.2015.v6n4s2p639