4. Dynamic Capabilities and Economic Sustainability of Petroleum Tank Farms in South-South, Nigeria

Abstract

The study investigated the relationship between dynamic capabilities (dimensioned by sensing capabilities, seizing capabilities and reconfiguring capabilities) and economic sustainability of petroleum tank farms in South-South, Nigeria. The theoretical foundation of this study was grounded by the Dynamic Capabilities Theory and the Moral Responsibility Theory of Corporate Sustainability, while the positivist philosophical paradigm underpinned the study. The research adopted a cross-sectional survey design with a structured questionnaire based on a Likert's five-point scale. The elements of the accessible population are 820 middle and top level managers of the 29 petroleum tank farms in South-South, Nigeria. The Krejcie and Morgan’s table was utilized to determine a sample size of 262 respondents, and the simple random sampling was adopted. The partial least squares structural equation modeling was deployed to test the hypotheses at the 0.05 significance level. The findings revealed that there is a strong positive and significant relationship between sensing capabilities and economic sustainability. Moreso, there is a weak positive and statistically significant relationship between seizing capabilities and economic sustainability. Furthermore, there is a weak positive but not significant relationship between reconfiguring capabilities and economic sustainability of petroleum tank farms in South-South, Nigeria. It was concluded that the ability of petroleum tank farms to gather and interpret market information is crucial for their economic sustainability, while their ability to seize opportunities contributes to a lesser degree. However, reconfiguring capabilities, may not directly affect sustainability outcomes in the same way. It was recommended that Managers of petroleum tank farms should enhance sensing capabilities by investing in strengthening their market research and information-gathering processes, in order to remain competitive and ensure long-term economic sustainability. Furthermore, Management of petroleum tank farms should leverage seizing capabilities by improving their ability to quickly exploit new opportunities, aligning internal resources and focusing on innovation as a means of achieving economic sustainability.