Supply Chain Risk Management and Business Performance of Selected Oil and Gas Marketing Companies in Lagos State, Nigeria: Moderating Role of Firms' Size

Abstract

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, cause increasing high cost of operations, dwindling revenue and consequently decline in 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 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 petroleum industry in Nigeria where a sample size of 362 employees were 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 was analyzed using descriptive and hierarchical multiple regression technique. Findings indicate supply chain risk management strategy had significant effect on usiness performance of oil and gas marketing companies in Lagos, Nigeria. 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 management of oil and gas marketing companies need to employ strategic agility measures in order to thoroughly understand the Nigerian oil and gas business environment which is germane for oil and gas marketers so as to enable them build a framework that will enable them survive the changing environment and gain overall performance. Keywords: Firm Size, Food and Beverage Companies’, Business Performance, Supply Chain Risk Management Strategy, Lagos State