Factors influencing the choice of performance measures for the oil and gas supply chain - exploratory study

• Published in: IOP conference series. Materials Science and Engineering Vol. 342; no. 1; pp. 12091 - 12099
• Main Authors: Menhat, Masha, Yusuf, Y
• Format: Journal Article
• Language: English
• Published: Bristol IOP Publishing 01.04.2018
• Subjects: Energy economics; Performance management; Performance measurement; Supply chains
• ISSN: 1757-8981; 1757-899X
• DOI: 10.1088/1757-899X/342/1/012091

The current value of the oil price per barrel has severely impacted the oil and gas industry around the world. This has worsened the situation due to the fact that it has long been the backbone of the country through the energy supply, employability and also its role as the major economic contributor. Due to multiple external factors that affect this industry such as crude oil availability, oil price fluctuation, high transportation cost, as well as exposure to high uncertainties, it is sensible for the supply chain practitioner to shift their focus in managing their resources and capabilities. To maximise the potential of supply chain activities in improving overall company performance, it is important to pay extra attention on their performance management. This includes the design of meaningful performance measurement framework to assess organisational performance. This study will explore the influencing factors in choosing performance measures for the oil and gas supply chain. Five in-depth interviews were conducted with supply chain experts within the industry. Eight influencing factors have been identified through the interviews.