A study of Pathways and Obstacles to Sustainable Supply Chain in the oil and gas industry

Abstract

The ongoing sustainability campaigns are now well established. There is a general consensus that the earth is heating up due to man-made activities with potential perils facing the future of humanity. In order to curtail the hazards posed to the environment as a result of mass production of goods and services, there is a renewed interest in sustainable supply chains. In this regard, a significant body of research has been carried out, focusing, amongst other things, on exploring what constitutes sustainable supply chain management and related practices, which are mostly conducted in developed nations. In addition, the links between these practices and organisational performance are unclear and therefore remain a major interest to academics and practitioners alike to address the gap. More so, there has not been corresponding interest and focus on potential pathways and obstacles to achieving sustainability in Nigerian oil and gas industry, constituting an additional knowledge gap. Therefore, this study aims to identify the pathways and obstacles to sustainability implementation and their impact on sustainable supply chain practices and performance. Furthermore, to examine the impact of sustainable supply chain practices on sustainability and operational performance and its role in mediating the relationship between pathways to sustainability and sustainability performance.

To address these research gaps, an extensive literature review was carried out. The research developed a comprehensive pathways/obstacle to sustainability – sustainability practices – organisational performance framework focusing on antecedent and outcome effects, explaining the theoretical connections between the constructs. Further, the thesis is grounded in stakeholders’ theory and the delineation of its relevant insights was highlighted. Environmental and social Sustainable supply chain practices are the model's main constructs, with pathways and obstacles to sustainability as an antecedents and sustainability and operational performance as the consequences. Data was collected using a survey by questionnaire from 170 oil and gas companies in Nigeria to examine these relationships. The research model's reliability, validity, and goodness of fit were assessed using accepted statistical tools. In addition, the study uses structural equation modelling to examine the research objectives.

The results of this study are significant, providing evidence that pathways have a positive and significant impact on sustainable supply chain practices and sustainability performance. This suggests that these pathways are not just important, but critical requirements for sustainability implementation and improved sustainability performance. The study also reveals that obstacles can negatively influence sustainability practices and performance. It further shows that sustainable supply chain practices have a positive and significant impact on sustainability performance, although their impact on operational performance is insignificant. Moreover, these practices act as a mediator between pathways to sustainability and sustainability performance. Recognizing these findings and the potential risks associated with obstacles is crucial for developing comprehensive strategies that aim to integrate sustainability into operations and supply networks. Lastly, it is essential for organizations to embed sustainable supply chain practices in their activities to achieve greater sustainability performance.

Building upon extensive literature reviewed and empirical findings, this study contributes to the existing literature in the field of sustainable supply chain management by identifying both the pathways and obstacles to sustainability implementation in Nigeria, empirically confirming that these pathways improved sustainability practices and performance, and obstacles negatively impede sustainability practice and performance. Furthermore, the study clarifies the link between sustainable supply chain practices and organisational performance. Lastly, this research provides valuable insight for managers, policymakers, and environmentalists seeking to implement sustainability practices and promote sustainability agender. The study also provided businesses with a validated conceptual framework for evaluating the impact of implementing sustainability practices on their performance outcome.