Ihr Logo

IMPACT OF

EFFECTIVE AND COLLABORATIVE

PROCUREMENT ON ORGANIZATION

PROFITABILITY

IN OIL & GAS SECTOR OF PAKISTAN

Ihr Logo

PRESENTED TO : R & D DEPARTMENT

PRESENTED BY: Mr.Sabieh

Your Logo

RESEARCH QUESTION

What is the impact of effective and

collaborative procurement on the

organizations profitability in oil and gas

sector in Pakistan?

Your Logo

OBJECTIVES OF STUDY

To determine and identify the effectiveness of the collaborative and

effective procurement.

The extent to which the effective procurement is having an impact on

the profitability of organization.

The extent to which the collaborative procurement is having an impact on the profitability of organization.

To find out the relation among the three variables such as effective

procurement, collaborative procurement and organizations

profitability.

Your Logo

IMPORTANCE OF THE STUDY

This study will be beneficial for that have slow processes and facing loss. It will help

out the companies to implement the processes effectively and save the company

from failure.

Oil and gas sector is one of the fastest growing sector of Pakistan. The

procurement is the most important area for the profitability of this sector.

The study will benefit the oil and gas sector to further progress and achieve

success by means of applying this approach in every area and department

where the procurement is currently in progress.

Your Logo

SCOPE OF THE STUDY

The main focus of this study is to find out the impact of the effective

and collaborative research on the profitability of organization.

The goal is to motivate the oil and gas sector towards adopting this

approach to have a better outcome and progress.

Your Logo

SIGNIFICANCE OF THE STUDY

Past research on GENERAL BASIS.

FIRST TIME IN PAKISTAN and targeting Oil and Gas sector.

This sector is vital for economy attracting foreign investment.

The Current Oil Scenario In The World.

Your Logo

Literature Review

Keshinocak & Savasaneril (2008) emphasized the importance of collaborative

procurement as one of the initiative towards enhancing the collaboration and

synchronization among companies and it is also very essential for the mutual profit

Further, it is suggested by Dixon (2010) that in order to meet the competitiveness,

collaborative work and all the project management education must be elaborated

in the form of collaborative work.

Your Logo

RESEARCH METHODOLOGY

The focus of this study is to find out and analyze the factors of the supply

chain management such as effective procurement and collaborative

procurement.

In order to accomplish this, the questionnaires were distributed among the

managers and the employees working in the oil & gas companies located in

Islamabad. & Rawalpindi.

Your Logo

THEORETICAL FRAMEWORK

Organization

Profitability

Effective

Procurement

Collaborative

Procurement

Independent Variables Dependent Variables

Your Logo

HYPOTHESIS

H1: Effective procurement is positively and

significantly correlated with profitability of an

organization.

H2: Collaborative procurement is positively and

significantly correlated with profitability of an

organization.

Your Logo

SAMPLING Oil & Gas Companies in Isb. & Rwp.

SAMPLING TECHNIQUE Convenience Sampling approach

SAMPLE SIZE

People targeted for the data collection purpose was 250

The questionnaires that we got back were 150

Your Logo

PARTICIPANTS

PAKISTAN OIL FIELDS

MARI GAS

MOL

BHP BILLITON

OMV

Your Logo

DATA COLLECTION METHOD

PRIMARY DATA COLLECTION

Help of the survey by means of the distribution of the

QUESTIONNAIRES.

SECONDARY DATA COLLECTION

Help of the studies and researches that are done in the past.

The digital libraries such as jstor, springerlink, interscience were

being utilized.

RESEARCH INSTRUMENT

Likert scale QUESTIONNAIRE

Your Logo

RESEARCH ANALYSIS

Tools for Analysis

Correlation analysis

Regression analysis

Your Logo

Correlation analysis

Correlations

1 -.112 .233**

.172 .004

150 150 150

-.112 1 -.090

.172 .274

150 150 150

.233** -.090 1

.004 .274

150 150 150

Pearson Correlation

Sig. (2-tailed)

N

Pearson Correlation

Sig. (2-tailed)

N

Pearson Correlation

Sig. (2-tailed)

N

Ef fectiv eProcurement

CollaborativeProcurement

OrganizationProf itability

Ef fectiv e

Procurement

Collaborative

Procurement

Organization

Prof itability

Correlation is signif icant at the 0.01 level (2-tailed).**.

Your Logo

Regression analysis

F = 45.61,

R² =.058, Adjusted

R² = .046

Coefficientsa

2.577 .471 5.476 .000

.346 .124 .226 2.804 .006

-.066 .083 -.065 -.801 .424

(Constant)

Ef fectiv eProcurement

CollaborativeProcurement

Model

1

B Std. Error

Unstandardized

Coef f icients

Beta

Standardized

Coef f icients

t Sig.

Dependent Variable: OrganizationProf itabilitya.

Your Logo

Investigated Hypotheses

H1: Effective procurement being determinant of

OP is positively correlated to it.

H2: Collaborative procurement is negatively

correlated with the profitability of organization.

Your Logo

DISCUSSION, CONCLUSION & RECOMMENDATIONS

Oil and gas sector is the largest industry for the E & P of Oil and Gas.

Industry is very well aware of the significance of the procurement.

Research results support Effective procurement but not support Collaborative

Procurement.

Effective procurement plays an important role in enhancing the profits for the

organization.

For collaborative procurement companies think that this will be a risk and failures if

associated with the other company procurement department.

Your Logo

LIMITATIONS

We faced limitations while gathering the secondary data.

Topic that we selected for study is new and unique

therefore the very little research was done on all these

factors.

Your Logo