Abstract:
1. Introduction
Vertical Integration is a strategy that uses corporations to manage their
production and distribution. This study investigates how implementation
and institutionalization of vertical integration contribute to business
performance excellence during economic crises, often regarded as an
outdated strategy by recent scholars by using a multiple case study. This
study aims to explore why did the case study organizations move to vertical
integration as a key strategic initiative and how vertical integration drives
the performance excellence of the case study organizations and provides
key insights into how vertical integration contributes to a firm's operations.
2. Research Methodology
This study employs a qualitative methodology with realism philosophy and
an inductive approach. Data collection involved 16 semi-structured
interviews and three focus groups of executive and above level employees.
Purposive sampling ensured a representative sample of employee’s
relevant knowledge and experience. The data were analyzed using
thematic analysis, which involved transcribing interviews and focus groups,
coding for themes, and systematically identifying patterns to provide
accurate and credible insights.
3. Findings and Discussion
This study examines why and how vertical integration enhances business
performance excellence in the Sri Lankan retail sector through two multiple
case studies. Findings reveal that organizations adopted vertical integration
to mitigate supply chain disruptions and reduce costs during economic
crises. Vertical integration significantly improved operational efficiency,
cost control, and customer satisfaction, aligning with strategic goals.
4. Conclusion and Implications
This study concludes that when referring to the past scholars mentioned
that vertical integration is used as a successful tool. However, the present
scholars have mentioned that vertical integration is an outdated strategy.
By applying institutional theory, this research shows how modern
organizations use vertical integration successfully
