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Electronic Procurement Strategies and Delivery Performance of Oil and Gas Firms in Rivers State

Ocho, Obodoeze Chukwuma , Professor Ogbuji, Chinedu Nnaemeka

Abstract

This study examined the relationship between electronic procurement strategies and delivery performance of oil and gas firms in Rivers State. Despite growing investments in procurement technologies, the lengthening of sourcing cycles, order processing delays, high operating expenses and inconsistent delivery results still threaten companies’ competitive advantage and operational continuity. The study investigated the association between e-sourcing and e-ordering and timely delivery and operational efficiency of selected oil and gas enterprises. This was a cross-sectional survey design. The research population comprised of 65 registered oil and gas companies in Rivers State. A purposive sample was employed in collecting 120 copies of structured questionnaire from procurement and operations specialists. 92 useable copies retrieved. 84% recovery rate Data were analysed using SPSS and Spearman Rank Order Correlation Coefficient. The results showed that e-sourcing had a favourable and significant relationship with timely delivery and operational efficiency. e-ordering was also found to be significantly and strongly related to timely delivery and operational efficiency. None of the four null hypotheses were accepted. The findings of the study reveal that the strategic application of electronic procurement systems has a substantial positive effect on the delivery performance outcomes of oil and gas companies. To sustain the gains in delivery performance, the paper proposes that companies should increase their investments in e- sourcing and e-ordering platforms, supported by continuous people training and procurement monitoring systems.

Keywords

E-Procurement StrategiesE-SourcingE-OrderingDelivery PerformanceTimely DeliveryOperational Efficiency.

References

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