Spatial Pattern of Industrial Production Subcontracting in Onitsha Metropolis, Anambra State Nigeria by Nwokocha Victor Chukwunw
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i SPATIAL PATTERN OF INDUSTRIAL PRODUCTION SUBCONTRACTING IN ONITSHA METROPOLIS, ANAMBRA STATE NIGERIA BY NWOKOCHA VICTOR CHUKWUNWEIKE B.Sc (Nig) (PG/M.Sc/12/62362) A Project submitted to the School of Postgraduate Studies and the Department of Geography, University of Nigeria, Nsukka in partial fulfilment of the requirement for the degree of Master of Science Department of Geography, University of Nigeria, Nsukka June, 2014 ii CERTIFICATION Mr. Nwokocha, Victor Chukwunweike, a postgraduate student in the Department of Geography, specializing in Industrial Geography, has satisfactorily completed the requirements for the course and research work for the degree of Master of Science (M.Sc) in Geography. The work embodied in this project is original and has not been submitted in part or full for any other diploma or degree of this or any other University. --------------------------------------- ------------------------------------- PROF 1.A MADU PROF O.C. AKPOGHOMEH (SUPERVISOR) (EXTERNAL EXAMINER) --------------------------------------------------- PROF. P.C. ONOKALA (HEAD, DEPARTMENT OF GEOGRAPHY) ---------------------------------------------------- PROF. I.A. MADU (DEAN, FACULTY OF SOCIAL SCIENCES) -------------------------------------------------------- DATE iii DEDICATION To God Almighty the source of all wisdom and my mother Mrs Nwokocha, V.N. iv ACKNOWLEDGEMENT My profound and sincere gratitude goes to the Almighty God for giving me the grace to finish this study. I am particularly thankful to my supervisor and the Dean of Social Sciences, University of Nigeria Nsukka, Prof. I.A. Madu, a distinguished academic for his constructive valuable and helpful guidance in the course of this work. My profound gratitude goes to the PG coordinator, Dr. T.C. Nzeadibe, for facilitating and putting in place all the process leading to the completion of this work. I am equally grateful without any form of primordial and parochial sentiments to Prof. P.C. Onokala, Prof. P.O. Phil-Eze, Dr. N.C. Obeta, Dr. C.K. Ajaero, Dr. H.C Nnamchi, Mr. C.A. Onyekwelu, Mr A.T. Mozie, Mr. A.N. Ali, Mr. R.U. Ayadiuno, Mrs U.I Ayaogu, Miss T.C Akukwe, Mr C.U. Eze, and specially Mrs. I.G. Nwosu, for their insightful and valuable assistance in the course of this work. Although am unable to mention each person individually, I thank all the industrialists and parastatals who supported me in the course of this study. My immeasurable gratitude goes to Dr. S.I. Ifelumini, Dr C.A. Eze, Mr G.G Obinyeluaku, Mr .C. Ogbodo,and all my colleagues for their assistance and useful suggestions. I remain highly grateful to my Mother, Mrs Nwokocha, V.N. and siblings for their prayers, financial and moral support. I also express my heart-felt thanks to my course mates, friends and families for their wonderful encouragement at all stages of this work. To all those who supported me in one way or the other including my detractors, the mercies of God will never depart from your door steps. Nwokocha, Victor Chukwunweike June, 2014 v TABLE OF CONTENTS Title page........................................................................................................................ i Certification..................................................................................................................... ii Dedication........................................................................................................................ iii Acknowledgement............................................................................................................ iv Table of Content................................................................................................................ v List of figures..................................................................................................................... vii List of Tables.....................................................................................................................viii List of Appendices ………………………………………………………………………. xi Abstract...................................................................................................................................xii CHAPTER ONE: INTRODUCTION 1 1.1 Statement of the research problem............................................................................ 3 1.2 Aim and Objectives of the research.......................................................................... 5 1.3 The study area........................................................................................................... 6 1.3.1 Location.................................................................................................................. 6 1.3.2 Geology................................................................................................................... 9 1.3.3 Relief.................................................................................................................... 9 1.3.4 Climate................................................................................................................. 10 1.3.5 Vegetation........................................................................................................... 10 1.3.6 Population........................................................................................................... 12 1.3.7 Economic Activities........................................................................................... 12 1.4 Literature review....................................................................................................... 14 1.5 Theoretical framework.............................................................................................. 25 1.6 Research Methodology............................................................................................. 28 1.7 Plan of the project...................................................................................................... 32 CHAPTER TWO: CLASSIFICATION OF INDUSTRIES AND THEIR STRUCTURAL CHARACTERISTICS IN ONITSHA METROPOLIS 2.1 Introduction …………………………………....................................................... 34 2.2 Classification of industries involved in production subcontracting in Onitsha Metropolis..............................................................................................................................34 2.3Factors of industrial location in Onitsha Metropolis.........................................................37 2.4 Structural characteristics production subcontracting industries........................................39 2.4.1 No of employees.............................................................................................................39 2.4.2 Asset base of the industries.............................................................................................41 vi 2.5 Production subcontracting decisions by firm size............................................................42 2.6 Production subcontracting decisions by industrial groups........................................... 44 2.7 Structure of industrial production subcontracting....................................................... 45 SPATIAL DISTRIBUTION OF INDUSTRIES AND TYPES OF PRODUCTION SUBCONTRACTING IN ONITSHA METROPOLIS 3.1 Spatial distribution of industries in Onitsha Metropolis.............................................. 47 3.2 Pattern of industrial distribution in Onitsha Metropolis …………………………….. 50 3.3 Types of Production subcontracting …………………………………………………. 52 3.3.1 Competence subcontracting....................................................................................... 52 3.3.2 Outsourcing subcontracting........................................................................................ 53 3.3.3 Capacity subcontracting.............................................................................................. 55 3.4 Industrial activities subcontracted by industries in the study area............................... 57 3.5 Industrial activities subcontracted by industrial groups............................................... 58 CHAPTER FOUR: FACTORS INFLUENCING THE USE OF PRODUCTION SUBCONTRACTING BY INDUSRIES IN THE STUDY AREA 4.1 Introduction.............................................................................................................. 61 4.1.1 Factors influencing the use of production subcontracting by industries in the study area …………………………………………………………………………. 61 4.1.2 Factors influencing the selection of production subcontractors by industrialists in the study area......................................................................................................... 64 CHAPTER FIVE: BENEFITS AND PROBLEMS LIMITING PRODUCTION SUBCONTRACTING IN ONITSHA METROPOLIS 5.1 Introduction................................................................................................................... 67 5.1.1 Benefits of production subcontracting in the study area............................................. 67 5.1.2 Problems limiting production subcontracting in the study area.................................. 69 CHAPTER SIX: SUMMARY, RECOMMENDATIONS AND CONCLUSION 6.1 Summary of research findings......................................................................................... 72 6.2 Recommendations........................................................................................................... 80 6.3 Conclusion....................................................................................................................... 84 References...........................................................................................................................