IBANGA John I.
Department Of Marketing, Faculty of Administration and Management
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
NADUBE Paul M.
Department Of Marketing, Faculty of Administration and Management
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
NWULU Chinyere Stella
Department Of Marketing, Faculty of Administration and Management
Rivers State University Nkpolu-Oroworukwo, Port Harcourt
Abstract
This study examined of the impact of logistics risk acceptance on operational effectiveness of oil and gas servicing companies in Rivers State. The study adopted a causal research design and collected primary data in a cross-sectional survey. 87 oil and gas servicing companies operating at the Onne oil and gas free zone of Rivers State comprised the population of the study. The study took a census, and sampled 2 managers (Logistics Manager and Operations Manager) from each company. A structured questionnaire was used to collect primary data. The validity of the instrument was determined via exploratory factors analysis; while its reliability was confirmed using Cronbach’s alpha test. The linear regression statistic was used to test the impact of logistics risk mitigation risk acceptance on metrics of operational effectiveness (delivery performance, cost minimization and operational flexibility). The Statistical Package for Social Sciences version 24.0 facilitated the data analyses. The study found that logistics risk acceptance impact operational effectiveness of oil and gas servicing companies. Importantly, the study found that risk acceptance impacts delivery performance more than other measures of operational effectiveness. The study concludes that logistics risk acceptance predict operational effectiveness; and that operational effectiveness of oil and gas servicing companies in Rivers State depend on logistics risk acceptance. Hence, the study recommends that oil and gas servicing companies in Rivers State that seek improved operational effectiveness in terms of delivery performance, cost minimization and operational flexibility should adopt logistics risk acceptance as a risk mitigation initiative.
Keywords: Cost minimization, delivery performance, logistics risk acceptance, operational flexibility, operational effectiveness