The Impact of Financial Risk Factors on Key Performance Variables in the Nigerian Petroleum Industry

The Nigerian petroleum industry is central to the sustainability of the economy of Nigeria as it is the greatest contributor to Gross Domestic Product (GDP) and foreign exchange. The recurring nature of price risk and other financial risks in the petroleum industry suggests that uncertainty, driven by oil and gas price changeability, causes incessant apprehension to all stakeholders who suggest a need for effective management if sustainability of the industry is to be achieved. Risk management is said to be in a rudimentary stage in Nigeria and, at best, evolving. Previous literature in this area mostly focuses on the impact of each risk on the company's stock and exporting countries' economies. Research on integrated financial risks’ impact on key operational variables in the Nigerian petroleum industry is scarce. This study was, therefore, conducted to fill that gap by contributing to the literature on financial risk management. It examined the impact of financial risk factors on key performance variables, such as profitability, cash flow, the cost of doing business, workforce cutting and project shelving in the Nigerian petroleum industry. This study adopted a mixed-method research design with a philosophical stand, which is associated with the pragmatism paradigm. Qualitative and quantitative data were collected by conducting semi-structured interviews with five senior management staff and distributing questionnaires to 70 financial risk managers. Descriptive and inferential statistics, such as the Pearson correlation coefficient, were used to determine the significance of the relationship. These results indicated that there was a significant relationship between financial risk factors and key performance variables such as profitability, cash flow and the cost of doing business at a value of P<0.05. These results are important to the financial risk managers and stakeholders of the industry as it will help them understand how to manage their exposure for sustainability. Keywords: Nigerian Petroleum Industry, Financial Risks, The Impact of Financial Risks, Exchange Rate Exposure and Price Risk Exposure DOI: 10.7176/EJBM/12-14-10 Publication date:May 31st 202

Perspectives on leadership

My fields of study are business management and organizational behaviour (OB). In business management we study how to manage businesses effectively by executing various functions (marketing, finance, human resources management, general and strategic management, purchasing and logistics, public relations management, production and opertaions, information technology management) and management tasks (planning, organising, leading and control) (Bosch, Tait and Venter, 2006)

Perspectives on leadership

My fields of study are business management and organizational behaviour (OB). In business management we study how to manage businesses effectively by executing various functions (marketing, finance, human resources management, general and strategic management, purchasing and logistics, public relations management, production and opertaions, information technology management) and management tasks (planning, organising, leading and control) (Bosch, Tait and Venter, 2006)

Determinants of Pension Fund Efficiency in Kenya: An Exploratory Study

This paper investigates the determinants of the operational and financial efficiency of pension funds in Kenya. A sample of 362 pension schemes was drawn from the Kenyan Retirement Benefits Authority (RBA) register. The empirical results show that pension governance, leadership and regulations do not significantly influence the operational and financial efficiency of pension funds. The results do however reveal that pension regulations influence the leadership and governance practices of the pension schemes. Moreover, the schemes with more middle-aged members (31-40 years) are perceived to be better governed. Lastly, the results reveal fund size to be an important determinant of the financial efficiency of the pension funds

Empirical testing of Kotler's high-performance factors to increase sales growth

Purpose and/or objectives: The primary objective of this study is to empirically test Kotler's (2003) high-performance model which ensures an increase in sales growth. More specifically, the study explores the influence of process variables (as measured by marketing strategies), resources management (as measured by the management of labour, materials, machines, information technology and energy) and organisational variables (as measured by TQM and organisational culture) on sales growth in the food, motorcar and high-technology manufacturing industries. Problem investigated Various research studies suggest that the managers of firms are continuously challenged in their attempts to increase their sales (Morre, 2007; Pauwels, Silva Risso, Srinivasan & Hanssens, 2004: 142-143; Gray & Hayes, 2007: 1). Kotler (2003) suggests a model that leads to a high performing business. The question is posed as to whether this model can be used to increase sales growth in all businesses. This study seeks to develop a generic model to increase sales growth across industries by using an adapted version of Kotler's (2003) high-performance model. The study investigates the application of this adapted model on the food, motorcar and high-technology manufacturing industries. Design and/or methodology and/or approach: An empirical causal research design that includes 770 marketing and product development practitioners from multinational food, motorcar and high-technology manufacturing firms, was used in this study. A response rate of 76.1% was achieved as only 571 useable questionnaires were returned. The internal reliability and discriminant validity of the measuring instrument were assessed by the calculation of Cronbach alpha coefficients and the conducting an exploratory factor analysis respectively. Structural Equation Modelling SEM) was used to statistically test the relationships between the independent variables (marketing strategies, resource management, TQM and organisational culture) and the dependent variable (sales growth). Findings and/or implications: As the achievement of increased sales, profits and market share is important to all industries, companies spend large amounts of money on research and development to increase sales and market share. The study's empirical results lead to a proposed model that shows the factors influencing sales growth. These factors include distribution channel development, third-party agreements, e-business, e-savings and a market-oriented organisational culture

Assessing the outcomes of the higher education mergers in South Africa: Implications for strategic management

Objective of the study: The objective of this study is to investigate the relationship between perceived merger outcomes, employee organisational commitment and employee job performance in South African higher education institutions. Problem investigated: High levels of negativity towards the mergers have initially been reported. The unbundling of certain mergers has been mooted. The outcomes of these mergers must therefore be evaluated. Methodology: A total of 329 questionnaires were collected from academic and non-academic staff at three comprehensive universities. Descriptive statistics were calculated and multiple regression analysis was conducted. Findings: The empirical results show, amongst other things, that (1) perceptions about merger goal success are significantly related to the organisational commitment and job performance intentions of employees, (2) organisational commitment levels are average and should be increased, (3) perceptions about workload fairness are significantly related to the organisational commitment of employees, and (4) employees have experienced an increased workload. Value of study: The study emphasises the necessity of the continual management of merger goal successes, workload distributions, and administration processes and resources (especially an empowered staff) in the pursuit of stable educational environments in these institutions. Conclusion: Managers of higher education institutions should pursue prudent strategic financial spending and continuously manage the job performance intent and organisational commitment of their staff members. If this is not done, positive perceptions of merger successes could decrease. Such a situation could perpetuate unstable conditions at already affected merged institutions and even cause stable ones to deteriorate