A Study of Sustainability in the Oil and Gas Supply Chain

Abubakar, Tijjani (2014) A Study of Sustainability in the Oil and Gas Supply Chain. Doctoral thesis, University of Central Lancashire.

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There is a general consensus that human activity has significant impact on global climate change with significant consequences to the environment. Although there has been relatively limited research on the relationship between corporate environmental performance and corporate financial performance, empirical of the relationship between proactive corporate climate change strategies and economic performance is still in need of clear delineation. It is in light of this hat this research examines the impacts of sustainability adoption on competitive performance of oil and gas companies. The research explores the notion of market driven sustainability by establishing an empirical link between sustainable supply chains characteristics and organisational competitiveness. The overall aim is to develop an empirical model of sustainable supply chain characteristics that improves resource utilisation, profit maximization and competitiveness in the oil and gas industry. The research reviews existing literature on supply chain management, sustainability and competitive objectives in order to generate an appropriate and adequate context for relevant analytical investigations. Primary data on sustainability and its impacts on organisational performance were collected from UK and gas industry through survey by questionnaire. The results show that the most significant drivers of sustainability are the desire to conserve energy, increase market share and improve competiveness. However, legal and regulatory pressure, in contrast to common perspectives in the literature, was not seen as strong drivers of sustainability. The most significant inhibitors of sustainability are inappropriate infrastructural facilities, higher take-up costs, shortage of information on sustainability and employees lack of environmental awareness. The results further indicate that, though sustainability strategies implemented by the respondent firms varied in scopes, these strategies were being extensively and successfully implemented. Generally, the adoption of sustainability in oil and gas supply chain leads to improved economic performance and environmental performance, which, in turn, positively impact organisational competitiveness. These results are of particular importance to managers, government policy makers environmentalists and researchers.

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