Supply Chain Risk Management and Business Performance of Selected Oil and Gas Marketing Companies in Lagos State, Nigeria: Moderating Role of Firms' Size
DOI:
https://doi.org/10.53819/81018102t4054Abstract
The oil and gas marketing firms in Lagos State are faced with issues such as natural disasters (pandemic), man-made hazards (pipeline vandalization and oil theft) and macro-economic events (economic downturn, high inflation and foreign exchange volatility). These challenges have critically affected consumers purchasing power, causing an increasingly high cost of operations, dwindling revenue and consequently a decline in the operating performance of oil and gas companies, especially oil and gas marketing firms. This study investigated the effect of supply chain risk management strategy on the business performance of oil and gas marketing companies in Lagos, Nigeria as moderated by firm size. The study adopted a survey research design. The study population study was 1,044 full-time employees of five selected oil and gas marketing companies in the downstream sector of the petroleum industry in Nigeria where a sample size of 362 employees was selected. The study adopted purposive, stratified and proportionate sampling techniques. An adapted and validated questionnaire was used to collect primary data from the respondents. Data were analyzed using descriptive and hierarchical multiple regression techniques. Findings indicate supply chain risk management strategy had a significant effect on the business performance of oil and gas marketing companies in Lagos, Nigeria. The finding further revealed that firm size significantly moderated the relationship between supply chain risk management strategy and business performance among oil and gas marketing companies in Lagos, Nigeria. The study recommended that the management of oil and gas marketing companies need to employ strategic agility measures to thoroughly understand the Nigerian oil and gas business environment which is germane for oil and gas marketers to enable them to build a framework that will enable them to survive the changing environment and gain overall performance.
Keywords: Firm Size, Food and Beverage Companies, Business Performance, Supply Chain Risk Management Strategy, Lagos State
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