Supply Chain Integration in Organizations: An Empirical Investigation of the Nigeria Oil and Gas Industry

Gonewa J Amu,Henry Ozuru

doi:10.5539/ijms.v6n6p129

Abstract

This paper develops and tests a conceptual model of supply chain integration and operational performance where integration of its supply chain network helps to keep closer look at the current performance to ensure flexibility in business operations. Empirical results based on the three dimensions of supply chain integration and a moderator. Information technology capability demonstrates that the availability of well integrated phenomena will enhance operations’ performance. This facilitating effort does not occur in the absence of a moderating variable. The results reveal how supply chain integration can be used to enhance operational performance. Implications are discussed for the organization of better supply chain network and effect across a highly dynamic global marketplace and for understanding prior research findings on supply chain integration.

Highlights

Oil was discovered in commercial quantity in Oloibiri, Bayelsa state by Shell Corporation in 1956
We attempted to answer three questions that concern supply chain network in organizations: (1) Is firm effectiveness better explain when the construct is measured in operational performance rather than other performance measure? (2) How do the various dimensions of supply chain integration influence operational performance in oil and gas context? And (3) does information technology capability moderate the effect of the various supply chain integration dimensions on operational performance?
We argued that information integration provide the ability to share online information across the supply chain network which facilitate our operational performance

Summary

Introduction

Oil was discovered in commercial quantity in Oloibiri, Bayelsa state by Shell Corporation in 1956. The industry has grown to become a major player in the international oil and gas market in the World. The downstream sector consists of processing, transportation, marketing and distribution of petroleum products (Hackward and Shore, 2004 and Roebar, 1994), in area like exploration-production-refining-market-customer. These supply chain activities need to be integrated in order to reduce cost of operations in the industry. Oil and gas in Nigeria, considering current market situation, requires a high degree of integration within the supply chain network of the industry, and the long term sustainability of the oil market will depend on how different sectors can work in an integrated manner

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Conclusion