Supply Chain Integration and Operational Performance of Oil Service Firms, South-South, Nigeria.

Abstract:

This study examined the relationship between supply chain integration and operational performance of oil service firms in south-south, Nigeria. The specific objectives therefore were to: examine the relationship between internal integration and product quality; investigate the relationship between supplier integration and improvement in delivery time; examine the relationship between customer integration and increase in market size. The study adopted a cross-sectional study with a population of 522 from six oil service firms. Taro Yamane formula was used to determine the sample size of 226. Data for this study were obtained from primary and secondary sources. Spearman’s rank order correlation coefficient and partial correction technique with Z-test were used to analyze data. Based on the analysis of the findings, it was revealed that that there was a strong and significant relationship between supply chain integration (internal integration, supplier integration, customer integration) and operational performance. Also discovered that information technology significantly moderates the relationship between supply chain integration and operational performance. The study recommended that oil service firms should ensure that information sharing among supply chain partners are timely, completely; there should be a real-time integration and connection among all internal functions in oil service firms from raw internal functions in oil service firms from raw material management, through production to sales so as to deliver quality products to customers.