An Assessment of Strategic Technology Alliance among selected Oil Servicing Companies in Nigeria.
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Date
2014
Authors
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Journal ISSN
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Publisher
Obafemi Awolowo University
Abstract
This study identified the types and level of strategic technology alliance among oil servicing companies in Nigeria. It examined factors influencing strategic technology alliance among oil servicing companies in Nigeria. Furthermore, it assessed impact of strategic technology alliance on production performance of indigenous oil servicing companies. This was with a view of enhancing policy formulation in the oil and gas industry in Nigeria.
The study followed a quantitative research design using survey method and in-depth interview. Questionnaire were used to source for primary data while oral interviews and industry journals were used for secondary data. The study covered three states, Rivers (Port-Harcourt), Delta (Warri) and Lagos (Lagos) states. Eighty (80) oil servicing companies comprising of sixty (60) indigenous and twenty (20) foreign oil servicing companies were purposively selected. Primary and secondary data were used to elicit information from middle to top management employee of oil servicing companies on alliance engagement within the oil servicing sub-sector of the oil and gas industry. A total of 80 questionnaires were administered on 60 indigenous and 20 foreign oil servicing companies in Nigeria. Majority of the questionnaire were returned and 67 questionnaires were found useful for analysis. The data obtained was analysed using descriptive and inferential statistics.
The study showed that joint technology development (20%), joint production (18%), joint marketing (15%) and hybrid alliance (12%) were prevalent types of strategic technology alliance among oil servicing companies in Nigeria. Furthermore, the study revealed that 45.5% of strategic technology alliances formed were between indigenous and foreign oil servicing companies while 34.8% of alliance formed were wholly between indigenous oil servicing companies. Result also showed that factors influencing alliance formation such as achieving or sustaining competitive advantage, obtaining or acquiring new technology; growth strategies and entering new markets; was significantly different (F=5.206, P<0.005) with achieving or sustaining competitive advantage (3.41) having the highest mean rank and reducing financial risk and share cost of research and development with the least mean rank (2.62). These results revealed that majority of indigenous oil servicing companies are motivated by the quest to achieve or sustain competitive advantage. The ANOVA and mean rating of production performance indicators as regards capacity utilization, volume of sales, competence, gross earnings and revenue, and profitability recorded no significant difference (F=1.328, P>0.05) before indigenous oil service companies engagement in strategic technology alliance. However, there was significant difference in the production performance indicators (F=5.154, P<0.05) after indigenous firms engagement in strategic technology alliance with capacity utilization (3.56) significantly higher than other factors. In addition, volume of sales and competence had significant relationship likewise gross earnings and revenue; and profitability. This implies that there has been a significant improvement in production performance of indigenous oil servicing companies after they got engaged in alliance.
This study concluded that strategic technology alliance has impacted positively on production performance and competitiveness of indigenous oil servicing companies in the oil and gas industry in Nigeria.
Description
xvii,129
Keywords
Technology, Nigeria, Oil, Industry, Companies
Citation
ishola,O.T(2014).An Assessment of Strategic Technology Alliance among selected Oil Servicing Companies in Nigeria.Obafemi Awolowo University.