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

In this paper, an attempt has been made to show the influence of subcontracting
constraints on firm performance in Nigeria. The paper in line with the literature
identified a number of constraints hindering an effective subcontracting arrangement
in the study area. While the constraints were found not to have affected the use of
subcontracting in the country, low capital intensity, disclosure of commercial secrets,
poor services and interest conflict were found to have restricted subcontracting
arrangements in the study area to sharing of equipment and short-term contracts.
These constraints however were found not have affected the performance of
manufacturing industries in the study area. This paper keeping in mind the findings
of this study suggested that manufacturing industries in Nigeria should invest more
in machineries and tools so as to increase subcontracting co-operations among
industries.