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Bye to Vertical Integration and Welcome to the Horizontal Integration in the Textile Business

Author

Listed:
  • Subhani, Muhammad Imtiaz
  • Hasan, Syed Akif
  • Osman, Ms. Amber

Abstract

When it’s about production then association between the machinery and efficiency is gauged. This investigation seeks the matter whether vertical integration (balanced integration) in an organization provides better results and profits. The focused industry was textile with a sample size of 30 firms from Pakistan. It is to the interest of the textile owners and industry that vertical integration for a textile firm doesn’t really matter for the production efficiency in today’s world. There is something more to increase the production efficiency in regards to production facility and equipments used to generate outputs. Horizontal integration is a merger/acquisition/buyout with another same organization in the market that sustains one’s growth, increase production efficiency and monopoly in the industry. This integration is a matter of success for current situation of the micro and macro environment of this industry, which helps the textile firms to achieve the reduction in average cost (economies of scale) and increase the output.

Suggested Citation

  • Subhani, Muhammad Imtiaz & Hasan, Syed Akif & Osman, Ms. Amber, 2012. "Bye to Vertical Integration and Welcome to the Horizontal Integration in the Textile Business," MPRA Paper 45140, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:45140
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    References listed on IDEAS

    as
    1. Jean-Paul Chavas & Ragan Petrie & Michael Roth, 2005. "Farm Household Production Efficiency: Evidence from The Gambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 160-179.
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    More about this item

    Keywords

    Textile industry; vertical integration; horizontal integration; production efficiency; economies of scope; economies of scale.;
    All these keywords.

    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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