Sustainable performance and disaster management in the oil and gas industry: An intellectual capital perspective

Abstract

In the post-COVID era and amidst the ongoing Ukraine conflict, the natural resource extraction sector, particularly oil and gas, faces unprecedented challenges in maintaining its sustainability. Disasters in this sector, ranging from environmental catastrophes to operational disruptions, further exacerbate these challenges, eroding environmental integrity and aggravating social issues. These events underscore the urgency of strengthening disaster management capabilities in the oil and gas sector to safeguard against future uncertainties and sustain its operational viability. Against this context, this study aims to examine two critical facets of disaster management in the oil and gas sector. The first objective is to assess the role of intangible resources, particularly intellectual capital, in improving an organization's disaster management capabilities. Intellectual capital, encompassing human, relational, and structural capital, is posited as a key driver in managing complex and unpredictable challenges. The second objective is to investigate the role of supply chain risk management in mediating the impact of intellectual capital on disaster management. Data for this study were collected from firms in the oil and gas sector of Pakistan through a structured questionnaire Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for data analysis. The results reveal a significant impact of intellectual capital on improving both the responsiveness and alertness aspects of disaster management. Further, supply chain risk management emerges as a crucial factor in channeling the influence of intellectual capital on disaster management effectiveness. Findings of the study not only contributes to the theoretical understanding of disaster management in the natural resource sector but also offers practical insights for industry practitioners. The novelty of this study lies in its empirical examination of the interplay between intellectual capital, supply chain risk management, and disaster management capabilities, win the context of the oil and gas sector.