The Effect of Supply Chain Management Practices on Corporate Performance in Libya Oil and Gas Industry

Abstract

In this article, supply chain management practices (SCMPs) are examined to see whether they affect the performance of the Libyan oil and gas sector. The research is quantitative and is based on a survey using simple random sampling and data collection via a standard questionnaire. The surveys were sent to 479 individuals employed in the Libyan oil and gas sector, with an average service experience of 16 to 20 years. There were 86.6 percent of men and 13.4 percent of women in the sample. Descriptive statistics and structural modelling systems are used in conjunction with Smart PLS software to evaluate hypotheses about the relationship between variables. The findings of this research show that SCMPs are greatly and positively linked to the performance of Libyan oil companies. Financial performance (FP) was significantly and positively affected by three SCMPs: Strategic Supplier Partnering (SSP)¹, Logistics Management (LM)², and Information Sharing and Quality (IS & Q)³. As well as non-financial performance (NFP), of Libya's petroleum industry was significantly and positively affected by two SCMPs: SSP¹ and LM². The findings of the study can be used to improve the oil and gas supply chain performance, and they show that more SCMPs can lead to better company performance. Furthermore, supply chain directors will learn about the implications of efficient and high-quality supply chain implementation practices in their companies' supply chains, such as: strategic supplier partnering, logistics management, information sharing and quality, and materials procurement and inventory management. This study complements the literature by looking at the association between supply chain management techniques and firm performance in the oil and gas industry.