Victor Amadin Idehen, Precious Yanetu Oyarebu-Shaibu


This study examined impact of diversification on firm performance. There has been upsurge in business failure in Nigeria. Many have attributed management and financial inept as a major contributions. Many of these businesses focus on their core competences without desire to leverage on improved performance of their core competence and probably diversified into related or unrelated business for efficient performance. The objective of the study is to ascertain the impact of diversification on performance of Small and Medium Enterprises (SMEs) in Nigeria. The research design is both exploratory and descriptive. Primary data were elicited through the use of questionnaire. The result revealed that on a scale of 1-5, the profitability and performance level of the firm (Nadia Bakery) before diversification increase from fairly good to very good after diversification. It was recommended that SMEs must ensure it pursue diversification for continuous growth and consider divestiture when the organization resources are over stretched.


Diversification, Divestiture, SMEs, Nadia Bakery and System dynamics modeling.

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